Good Morning folks,
Today we have prepared a detailed report on weekly basis and the usual daily basis view. Also we have included a special report on Rossari Biotech IPO which opens for subscription today.
Global cues:
• Stocks closed green on Friday as news about a potential coronavirus treatment from Gilead Sciences & BioNTech increased hope for an economic recovery.
• Tech stocks had a winning week as Nasdaq hit higher levels simultaneously.
• The Dow gained 0.96% for the week.
• Russian university successfully completes trials of world’s 1st Covid-19 vaccine.
• Dow Futures were trading positive today morning and Asian markets are in green.
• Sgx Nifty is 70 points up. So we can expect huge gap up opening in our market.
Significant news events for upcoming week:
• Consumer price inflation data will be coming out on Monday
• Wholesale price inflation data will be coming on Tuesday.
• The above two data might not have significant impact on markets mainly because the higher prices have been already factored in because of corona virus.
• China GDP data & Industrial production data will come out on Thursday.
• Q1 results of many companies are scheduled this week. Key ones to watchout for are Wipro, Infosys and HCL Tech.
• Also reliance AGM is scheduled on July 15th.
Indian markets:
• The Indian indices ended lower on Friday as banking & financial names slipped in trade and nifty closed 0.42% down.
• As Expected Nifty was very volatile and traded in 10700 to 10850 range which was given by us.
• Last week was a consolidation week for the markets.
• After a few volatile months nifty finally looks to have settled down. Vix fell down from 30 to 25 last week.
• Last week nifty operated in a range of 200 points, which was notable.
• Now market has to decided whether to give either a breakout or breakdown. Half of technical are bullish and half are bearish.
• A fall in Nifty of about 5-8% is impending and is not getting triggered because of the retail investor liquidity in the market.
• On Friday RIL lifted Nifty by 45 points while HDFC twins & ICICI Bank dragged it by 61 points.
• FIIs were net sellers of worth Rs. 1031 Cr and DIIs were net sellers of worth Rs. 431.21 Cr.
• Although Nifty gained for fourth week in a row, the trading range narrowed considerably, and the momentum appeared to be losing its strength as well.
• In the past five sessions, Nifty faced resistance in the 10,800-10,850 zone. This zone will act as a stiff resistance point in the immediate short term.
• It will remain vulnerable to selloffs at higher levels.
• It will remain vulnerable to selloffs at higher levels.
• Pharma and realty were highest performing stocks. Bank Nifty dropped by 2.22%.
• PNB lost over 5% after the lender reported fraud in the NPA account of DHFL to the RBI.
• TCS ended 0.7 % higher even after the it posted a bigger than expected drop in profit.
• Nifty’s Expected range for the week will be 10200 to 11200.
• Nifty’s expected range today can be 10720 to 10900.
• Nifty may face resistance at 10870 & 10905.
• Downside support is at 10740 & 10800 levels.
• If Nifty makes a relentless up-move, the risk-reward ratio will become even more unfavourable for retail investors and traders, who are chasing the upside momentum. A defensive and stock-specific approach is advised for the coming week.
Buzzing stocks of day:
• Bharti Airtel may see some selling pressure with TRAI blocking premium plans on service violation norms. The stock closed at 574 on Monday. Expect the stock to test 558 levels in the early hours of trade on Monday.
• RIL reported a stake sale of its Jio business to Qualcomm ventures. All trading at its all-time high see the stock to move up to a new high of 1,925 levels.
• Axis Bank showed some weak structure on Friday, expect the stock to slide further to 430 levels in the early hours of trade.
• National Aluminum saw a build up sellers on Friday second half, the stock may test 36 levels during the market hours because of Bearish Harami pattern development on Friday.
• Hul has recently given a very good breakout, Stock can see 2250 levels on Monday if sustained above 2210 levels.
Results on July 13:
Anupam Finserv, 5paisa Capita, India Home Loan, Kwality Pharmac, Universal Auto
Rossari biotech IPO
Company Overview and Fundamentals:
The company is among the largest manufacturers of textile specialty chemicals in India. It also manufactures acrylic polymers. The company offers three main product categories namely home, personal care and performance chemicals; textile specialty chemicals and animal health & nutrition products.The net proceeds from the IPO will be utilized for funding working capital requirements, repaying certain debt availed by the company and for general corporate purposes.
(In ₹ Mn) | 2020 | 2019 | 2018 | 2017 |
Assets | 4,715.15 | 2489.45 | 1649.50 | 1308.94 |
Revenue | 6,038.18 | 5171.24 | 3004.29 | 2605.97 |
PAT | 652.53 | 456.83 | 254.03 | 142.85 |
Reasons to Subscribe:
1. Strong Fundamentals
2. Grey Market Trends
3. Strong Diversified Portfolio
IPO Listing Details:
IPO Date | Jul 13, 2020 - Jul 15, 2020 |
Issue Type | Book Built Issue IPO |
IPO Price | ₹423 to ₹425 Per Equity Share |
Min Order Quantity(Lot Size) | 35 Shares |
Investment/Lot | ₹14805-₹14875 |
Finalisation of Basis of Allotment | Jul 20, 2020 |
Initiation of Refunds | Jul 21, 2020 |
Credit of Shares to Demat Acct | Jul 22, 2020 |
IPO Shares Listing Date | Jul 23, 2020 |
Unlisted shares of the company are demanding up to 30-35 per cent premium over the IPO price in grey market.
Target Price: 520-530 in Short term. In
the long term, price can touch 680-700 levels in
12 months
Follow the hyperlink : Step-by-Step-Guide-to-IPO-subscription
Disclaimer
Please note that all the recommendations/views/ levels we provide are based on the theory of technical/fundamental analysis and personal observations. This does not claim for sure/ certain profit or any fix returns. we are not be liable for any losses you make on the given takes and levels. You are advised to take your position with your sense, discretion and judgment. only you would be responsible for outcomes of your trades
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