Good Morning folks,
Hope everyone made money yesterday in Equity stocks and index options. 4 out of 5 calls given yesterday in stocks have worked. Nifty also traded in expected range. Today we have come up with Daily Market report and also special report on Yes bank FPO which opens for subscription on 15th july.
Global cues:
• Wall Street hit fresh highs on Monday as positive Covid-19 vaccine news and the start of corporate earnings season overshadowed an ongoing surge in virus but ended flat at end.
• China close to $10 trillion stock values, a milestone that would seal the market’s recovery from its biggest crash in history.
• AToday morning Asian markets are negative and dow futures are flat.
• SGX Nifty is trading 40 points down. so we can expect slight gap down today.
Indian markets:
• Nifty ended 0.32% higher on Monday. Opened high but has seen a huge selling pressure at 10900 level and fall in the banking stocks pushed the index gradually lower.
• Reliance Industries & infosys lifted Nifty while HDFC twins and ICICI Bank dragged it.
• FIIs were net buyers of worth Rs. 221.76 Cr. and DIIs were net sellers of worth Rs. 1485.59 Cr.
• Nifty formed a bearish candle on the daily chart, as the bulls failed to hold the momentum at higher levels.
• Nifty is yet to form a candle above the trend line which shows the hesitation in bulls. The 20-day moving average is at 10450 and the support for the trend line is at 10500.
• In the above chart using a 15 minute candle, Nifty has been trading in narrow range 200 point range btw 10700 to 10890 for last 6 trading sessions.
• Interestingly, retailers are the ones who have been providing liquidity to the markets for quite sometime now.
• IT, FMCG and Metal stocks have seen strong buying. Bank Nifty and Realty dropped.
• Bank Nifty has been underperforming compared to Nifty since last two sessions. It has seen some shorts buildup in the futures segment.
• Tech Mahindra up 5.5%, HCL Technologies up 4%.
• IT stocks are trading at resistance, one should wait for results before taking any positions.
• Bharti Airtel higher while Vodafone Idea slips after TRAI blocks premium plans
• Yes Bank falls 14% as investors likely to have sold shares ahead of FPO which is to open on July 15, floor price set at ₹12, almost 50% lower than the market price. Aims to raise a fresh capital of ₹15,000 crores.
• Rossari Biotech IPO subscribed 60% on day 1.
• Google will invest Rs 75,000 crore into India over the next 5-7 years focusing on digitization.
• Nifty’s expected range tomorrow can be 10660 to 10900.
• Nifty may face resistance at 10800 & 10870
• Downside support is at 10720 & 10660 levels.
• Maximum call OI of 25.4 lakh contracts was seen at 10,900 strike, which will act as crucial resistance for tomorrow.
• Maximum put OI of 26.2 lakh contracts was seen at 10,700 strike, which will act as crucial support tomorrow.
• In the broader market, midcaps and smallcaps underperformed the largecaps. Some analysts believe the market is hoping for further stimulus measures from RBI on expectations of a softening of inflation. Others believe technical charts are signalling trend reversal.
Stocks picks of the day:
• Acc Ltd has seen a strong buying momentum yesterday and formed a bullish candle, it can be bought above 1350 and stock can see levels of 1370.
• RBL bank can see some selling pressure tomorrow. One can sell after any upward bounce in the morning. Stock can see 173-171 levels.
• DLF has formed a strong bearish candle yesterday. Can Expect stock to touch 140-138 levels today.
• Bharthi Airtel has given a good breakout yesterday, stock can see 592 in early hours of today's trade.
• Bajaj Finance looks weak after halting for four consecutive days after making its high. One can follow similar setup to that of RBL Bank. Can sell on any upmove for a target of 3180.
Results on July 14:
Wipro, Delta Corp, Khadim India, Rel Ind Infra, National Perox, Hindoostan Mill, Hind Copper, Alpha Hi-Tech, Deep Diamond, Guj Hotels.
Yes Bank FPO- ₹ 15,000 cr
Company Overview and Fundamentals:
Yes Bank is a private sector bank in India. It has developed as a full-service commercial bank offering banking and technology-driven product and services to fulfill the financial needs of MSME, corporate, and retail customers.
Yes Bank provides merchant banking, investment banking, and brokerage businesses through Yes Securities. The mutual fund business of the company is handled by YES Asset Management (India) Limited.
The proposed utilization of the net proceeds is for ensuring adequate capital to support growth and expansion, including enhancing the bank's solvency and capital adequacy ratio.
(in Mn ₹ ) | 2020 | 2019 | 2018 |
Assets | 2,578,321.64 | 3,808,596.10 | 3,124,496.54 |
Revenue | 103,350.56 | 144,879.93 | 130,323.20 |
PAT | (164,325.80) | 17,092.66 | 42,332.20 |
Rationale:
1. Offer at 50% Market Price.
- High NPA and Bad Debt.
- 49% Stake with SBI(under reconstruction scheme) .
- Interest Payment comparable to earnings.
IPO Listing Details
FPO Date | Jul 15, 2020 - Jul 17, 2020 |
Issue Type | Book Built Issue FPO |
FPO Price | ₹12 to ₹13 Per Equity Share |
Min Order Quantity(Lot Size) | 1000 Shares |
Investment/Lot | ₹12000-₹13000 |
Finalisation of Basis of Allotment | Jul 22, 2020 |
Initiation of Refunds | Jul 23, 2020 |
Credit of Shares to Demat Acct | Jul 24, 2020 |
FPO Shares Listing Date | Jul 27, 2020 |
The stock has fallen almost 17% from its Thursday closing after announcement of price(as of 13th July, 2:20 pm).
The issue of additional share is unwelcomed by existing shareholder due to dilution and value erosion.
Recommendation: Investors with high risk can apply for listing gains, Target around ₹14-15.
These are tradable shares hence should be kept on watchlist of Positional/Swing/Intraday.
Follow the hyperlink : In Conversation with Prashant Kumar, CEO.
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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