Monday, 20 August 2018

Capital Goods Sector Q1FY19 earnings review – Profitability saves the day, order inflows remain muted

Asian equities were mixed Monday as traders look for clues from earnings reports, developments in the trade war and a meeting of central bankers in Jackson Hole later in the week to gauge the outlook for markets.

Japan’s shares fell, while stocks rose in Hong Kong and China. The dollar steadied and the 10-year Treasury yield was little changed. The offshore yuan was stable after signs China may be propping up the currency just as it prepares to restart trade negotiations with the U.S.


Bond traders are betting recent market turmoil won’t throw the Federal Reserve off its tightening course. They expect the Fed will raise rates at its next meeting and this week’s Jackson Hole symposium could provide clues as to whether such confidence is warranted as the spread between 2- and 10-year yields narrowed to the least since 2007 on Friday.


Elsewhere, Turkish markets are closed this week. That may mean low trading volumes and the possibility of sharp currency swings. 




Saturday, 18 August 2018

Currency woes: Five factors that are dragging rupee lower

The rupee has had a historic week, with the currency dipping to all-time lows of 70.39, breaching the psychological 70 per dollar level. A sharp fall in Turkish lira was seen as one of the triggers for the global currency rout.
At the last traded price, the rupee slid 26 paise to close below the 70-mark for the first time against the US currency, hammered by a strong dollar demand amid growing concerns over widening trade deficit.
The Indian currency collapsed to a historic intra-day trading low of 70.40 before closing at a fresh lifetime low of 70.15 per dollar, down by 26 paise or 0.37 percent over the previous close.
Emerging market currencies and stocks remained in the investors' crosshairs as worries mounted despite fresh rally for the Turkish lira.

Friday, 17 August 2018

Oil prices slip over concerns of global economic slowdown

Oil prices dipped on Friday, with U.S. crude heading for a seventh weekly decline amid increasing concerns about slowing global economic growth that could hit demand for petroleum products as inventories build.
Brent crude oil futures were down 9 cents at $71.34 a barrel by 0649 GMT. U.S. West Texas Intermediate (WTI) crude futures dropped 5 cents to $65.41 a barrel.
Brent is heading for a 2 percent decline this week, a third consecutive weekly drop. WTI is on track for a seventh week of losses, with a fall of more than 3 percent.
Traders said the main drags on prices were the darkening economic outlook due to trade tensions between the United States and China, and weakening currencies in emerging economies that are weighing on growth and fuel consumption.
U.S. investment bank Jefferies said on Friday there was an emerging "lack of demand" for crude oil and refined products.
Singaporean bank DBS said on Friday that Chinese data showed a "steady decline in activities" and that "the economy is facing added headwinds due to rising trade tensions with the U.S."

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Thursday, 16 August 2018

Trigyn Tech stock gains 3% on contract wins for staffing

Shares of 
 Trigyn Technologies were trading 3% up on Thursday noon after the company won a contract to provide temporary staffing services for Seattle Public Schools.

The contract is facilitating the continued expansion of Trigyn’s Public Sector and K-12 Education business. It is for an initial duration of one year, commencing on September 1, 2018, through August 31, 2019. It contains two optional, one-year extensions, bringing the potential duration to three years or through August 31, 2021. It will provide both technology and business services to Seattle Public Schools. 

The company is holding a contract with the US General Services Administration (GSA), Information Technology Schedule 70, General Purpose Commercial Information Technology Equipment, Software and Services (GS-35F-139A) SIN 132-51. This contract vehicle covers a broad range of labor categories.

Tuesday, 14 August 2018

Sun Pharma Q1FY19E Result Expectation@NSE BSE TIPS

Sun Pharma’s US business is likely to remain flat, while its India business is expected to clock in 20%+ revenue growth. Taro already reported a weak set of numbers in the last quarter.

Consensus estimates for Q1FY19E
  • Revenue – Expected to grow 11.2% yoy to Rs6,901cr. Sun Pharma’s India revenue is expected to grow 20%+ in Q1FY19E due to the lower base in Q1FY18. US revenue should be flat as base business erosion should offset revenue from gWelchol, gNexium, and Methadone HCL. Taro reported 11.1% yoy volume growth but 4.2% decline in revenue due to US pricing pressure. 

  • EBITDA – Expected to grow at 38.4% yoy, however, 10% qoq decline is expected to Rs1,517cr in Q1FY19E due to additional costs related to Ilumya/Yonsa launch and promotional activities as well as pricing erosion in the US base business. EBITDA margins estimated to expand by 433bps yoy, but contract 215 bps qoq. Taro's operating margins declined 730 bps yoy.

Monday, 13 August 2018

6 stocks that can trade with a negative bias as markets open lower




Indian equities are expected to open lower amidst negative global cues. As the indices are trading around their resistance levels, many stocks have witnessed a congestion, leading to a formation of bearish positions in their future contract. As the stock specific action will continue to remain in focus in today's trade, we believe following stocks will continue to trade with a negative bias backed by the formation of fresh short positions and unwinding of long positions in yesterday's trade. 
UnderlineOI (lakhs)% OI ChgPrice% Price ChgAction
JETAIRWAYS6920.8273(10.3)Short Buildup
KPIT6614.0289(1.7)Short Buildup
GAIL16913.6362(3.7)Short Buildup
PCJEWELLER98(16.6)101(0.5)Long Unwinding
HINDALCO420(6.9)223(2.4)Long Unwinding
OFSS1(6.0)3911(1.0)Long Unwinding

Note: Open interest is the total number of outstanding contracts that are held by market participants at any point in time. It can be used to gauge & identify an intermediate trend of underline securities in future and options market.

Price and Open Interest general rule:
DecreaseIncreaseShort build up
DecreaseDecreaseLong Unwinding

Saturday, 11 August 2018

Nihilent Ltd files DRHP with SEBI

Nihilent Limited (Company), a global business consulting and IT solutions integration company, filed its DRHP with SEBI today on August 09, 2018.

The Initial Public Offering (IPO) comprises of fresh issue aggregating up to Rs250cr by the Company (“Fresh Issue”) and an offer for sale of up to 2,125,599 equity shares by the selling shareholders (including an offer for sale of up 1,171,219 equity shares by Vastu IT Private Limited, a member of promoter group), (“offered shares”).

Motilal Oswal Investment Advisors Limited is the book running lead managers and Link Intime India Private Limited is the Registrar.

Friday, 10 August 2018

Gold dips on rallying dollar; eyes fifth weekly fall

Gold prices dipped in Asia on Friday, languishing near a one- year low, weighed down by a rally in the U.S. dollar amid heightened global political tensions.
Spot gold shed 0.5 percent to $1,206.29 an ounce at 0618 GMT, hovering close to its one-year low of $1,204 hit last week.
The metal was also on track to post a fifth weekly decline.
U.S. gold futures were 0.5 percent lower at $1,213.4 an ounce.
"The strong dollar is effecting the price of gold. Despite heightened geopolitical tensions, gold bears are still in control of the price and pushing the bulls out of their boundary," said Naeem Aslam,.

The U.S. dollar, in which gold is priced, on Friday extended gains to hit a 13-month high against a basket of peers as European currencies such as the pound and euro continued to lose traction.
Meanwhile, fresh U.S. sanctions against Moscow saw Russia's rouble near a two-year low, while the Turkish lira plumbed a record low in the wake of a diplomatic rift with the United States.
Gold prices, which can gain during times of uncertainty, have largely failed to benefit from rising geopolitical tensions this year, as investors have chosen the safety of the dollar over the precious metal.

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Thursday, 9 August 2018

Important facts about CreditAccess Grameen IPO

Microfinance firm Credit Access Grameen was subscribed 25% on Wednesday. On the first day of the share sale, investors bid for about 47 lakh shares of the 1.88cr shares on offer.

The Bengaluru-based company had placed the price band at Rs418-422 per equity share.

The issue consists of a fresh issue of shares worth up to Rs630cr and offer of sale of Rs501cr.

The enterprise mainly provides micro-loans to women in rural India. It boasts of a network of 516 branches across 132 districts in eight states, with Karnataka and Maharashtra contributing ~86% to its loan book.

Meanwhile, the company is promoted by Credit Access Asia NV, which is a multinational founded in 2006. Based out of Amstelveen in Netherlands, with additional branches in Indonesia and the Philippines, apart from India, the company offers financial services to individuals and small businesses.


Wednesday, 8 August 2018

Top stocks in focus today: Mphasis, Glenmark Pharma, Patel Engineering

Mphasis’ board approved Rs988.3cr buyback of up to 73.3 lakh shares (3.79%) at Rs1,350 each.

Glenmark Pharma’s partner Elite Pharma gets USFDA acceptance of NDA for Ryaltris.

Patel Engineering
 won two hydroprojects and tunnel projects order worth Rs2,400cr.

Gujarat High Court dismisses tax demand petition filed by Gujarat Sales Tax department against GAIL, media reports said.

Dhanlaxmi Bank revised its MCLR across various tenors.

GOCL Corporation arm won an order worth Rs203.09cr from Singareni Collieries for supply of explosives and accessories.

Beekay Niryat's board recommended issue of bonus equity shares in the ratio of 1:1.

OPTION CALL: BUY BAJFINANCE 2800 CALL ABOVE 74.00 TARGETS 78.00 / 84.00 / 90.00 STOPLOSS 68.00 

Tuesday, 7 August 2018

Welspun India stock soars over 4.5% after block deal

Shares of Welspun India soared over 4.5% in the early morning trade today. Around 4.1 mn shares changed hands in a block deal early Tuesday, as per media reports.

Welspun India Ltd is currently trading at Rs67.55 up by Rs3.15 or 4.89% from its previous closing of Rs64.40 on the BSE.

The scrip opened at Rs65.20 and has touched a high and low of Rs68.45 and Rs64.10 respectively. So far 1,04,84,553 (NSE+BSE) shares were traded on the counter.

The company provides end-to-end solutions in the home textiles segment. Welspun has prestigious brands like Christy, Spaces, Welhome and Tilt.

Monday, 6 August 2018

Nifty surges ahead, 10,500 on the cards

The Indian equity market seems to have climbed the short term wall of worry as Nifty pushed ahead closing at fresh all-time highs. This move came despite witnessing a Doji as well as a bearish belt-hold candle stick pattern during the week.

The ongoing momentum seems to be very strong and a break above its previous high of 11,390 levels is likely to lift the Nifty to move towards the 11,450-11,500 zone. 

On the downside, the short term structure would remain intact till Nifty sustains above the support of 11,170 levels.

Bank Nifty, on the other hand, is playing catch up and it is the PSU Banks space which is leading the current upswing. Bank Nifty has crucial resistance of 27,872 levels a break above which could trigger a fresh breakout, while 27,400 levels remains an important support zone for the Bank Nifty index.

Friday, 3 August 2018

Bharat Forge surges over 3% as Class 8 truck sales touch multi-year high

Sales of North America Class 8 trucks jumped to a multi-year high of 52,400 units in July 2018. This number was 180% yoy higher compared to 18,726 trucks sold in July 2017 and 24% mom higher compared to 42,200 trucks sold in June 2018. Class 8 trucks contribute close to 10% to Bharat Forge Limited’s (BFL) consolidated revenues. Consequently, the stock jumped more than 3% at the high point of the day. As per industry data, Class 8 truck demand is running high due to pick up in infrastructure and high freight demand. In some cases, OEM production is unable to keep pace with demand due to component shortage. 

Bharat Forge Ltd is currently trading at Rs652.80 up by Rs18.55 or 2.92% from its previous closing of Rs634.25 on the BSE. The scrip opened at Rs643 and has touched a high and low of Rs668.75 and Rs642.10 respectively. So far 12,23,914 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs29,529.96cr.


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