➢ Global markets remained muted with concerns of delta variant across key economies while higher commodity inflation could mar earnings season. Fed Chairman however soothed nerves and boosted sentiments and noted that the Fed’s benchmark of “substantial further progress” toward full employment and stable prices remains “a ways off.” He also acknowledged the pains associated with higher inflation which will remain elevated in coming months before cooling off. Economic data sets have been muted as reflected by consumer sentiment, industrial production while initial jobless dropped significantly lower. Inflation however has slowed in Eurozone.
➢ Japan’s central bank has maintained monetary stimulus unchanged while the central bank also lowered its near-term growth outlook citing the impact of the coronavirus pandemic and raised its fiscal 2021 inflation forecast. Meanwhile China’s economy grew at a lower-than-expected rate of 7.9% in 2nd quarter of 2021.
➢ The domestic markets however remained upbeat with NSE Nifty and BSE Sensex registering weekly gains of 1.49% and 1.44% respectively, much of the optimism reflected from US Fed Chair’s dovish statement.
➢ However, the wholesale inflation continues to remain in double digit in June and is more reflective of spike in global commodity prices while retail inflation, measured by the Consumer Price Index (CPI), eased marginally to 6.26% in the month of June (from 6.3% in May). The Index of Industrial Production (IIP), witnessed a year-on-year growth of 29.3% in May, much to do the low base effect.
➢ The optimism in the domestic markets was also led by anticipation of good earning cycle and revival in monsoon. Besides, the appointment of key ministers in sectors like textile also fueled rally in textile stocks on fast-track approval for export incentives.
➢ During the week, Mindtree, Tata Metaliks, Infosys, Wipo, L&T Technologies, Angel Broking, Tata Elxsi, HDFC AMC delivered strong set of results while L&T Infotech disappointed.
•Apollo Tyres ltd (APL) is one of the largest tyre manufacturer in India having a dominant market share in both the commercial vehicle and passenger vehicle segment. Industry is rapidly shifting from bias to radial tyres which now constitutes more than 40% of the total domestic truck tyres as compared to ~20% in FY14. Company derives nearly 45% revenue from truck and bus tyres and around 30% from passenger car tyres and these segments are going to be benefited from increasing radialisation.
•Company has already expanded its capacity in Andhra Pradesh and planned a further capex of Rs 1800 crore in FY22 to drive the growth. Company is setting up technological driven plant which will help the company to offer world quality products across the global markets. Company is also focusing on reducing the debt and optimizing the cost which will further augment its earnings growth going ahead.
Since May’21 onward the stock has been on a secular buy run honoring the rising trendline and the 50dma for multiple number of times. Now prices are near to its previous breakout level signaling resilience and offers fresh entry opportunity. Hence the stock can be bought with price target of 255
CMP: Rs 230
Target : Rs. 255 (+10.6%)
TECHNO FUNDA
•Syngene reported an operationally strong 4QFY21 despite a single digit growth of 8% YoY in topline ($ term revenue growth was 12%) led by discovery services and steady traction in dedicated R&D segment. Company has commercialized its Mangalore facility and expectation is ramp up of large scale operations once the USFDA inspection and approval comes through. During Q4FY21, company has extended its long term contract with one of its oldest and largest customer, BMS, upto 2030 which will result in higher order book in CRO segment.
•Company has announced a capex of Rs 750 -900 crore for FY22E. The management has maintained its guidance for double-digit revenue growth on the back of continuous client additions, extension of existing contracts, increasing manufacturing and biological contributions besides currency tailwinds. With elite client additions like Amgen, Zoetis, Herbalife, GSK, etc, and multiple year extension of BMS, Baxter contracts, the company remains well poised to capture opportunities in the global CRO space.
The stock has generated a resolute breakout above the six month of price consolidation signalling resumption of the primary uptrend and offers fresh entry opportunity. Spike in price action is well supported by volume which above the 10 months average. Hence the stock can be bought with price target of 740
CMP: Rs 664
Target : Rs. 740 (+11.4%)
TECHNO FUNDA
DOW JONES CHART
Index presently trading at the upper band of the consolidation range with higher high and higher low in weekly time frame defining presence of positive trend however presence of class B divergence indicating
exhaustion of rally. The main trend changes to down is Index trade below the 33000 level mark.
Prices has taken a halt after previous week of carnage. The week ended with an Inside day formation indicating indecisiveness in price action however the Important
support of 1300 is well respected and hence
sustaining above which would might result in price pullback towards 1400 level mark.
• Consumer sentiment index slumped to 80.8 in July from 85.5 in June.
• First-time claims for U.S. unemployment benefits decreased in line with economist estimates in the week ended July 10th to 360,000, a decrease of 26,000 from the previous week's revised level of 386,000.
GLOBAL
UPDATES
• The euro area trade surplus fell to a seasonally adjusted EUR 9.4 billion in May from EUR 13.4 billion in April.
• Eurozone inflation eased to 1.9 percent in June from 2 percent in the prior month.
• The Bank of Japan decided to leave its monetary stimulus unchanged and provided an outline for the new programme to support efforts on climate change, through which the apex bank plans to offer long-term loans at zero percent interest.
• China's Gross domestic product grew 7.9 percent year-on-year in the second quarter, down sharply from 18.3 percent in the three months prior.
USA
Europe
NIFTY CHART
Nifty started the week on a subdued note but gradually marched northward helping it to finally resolve out of one month consolidation (15900-15500). Consecutive higher high formation for the past 5 consecutive days in a row indicating extension of
positive momentum. Now the elevated support for the market is seen around 15500-15600 as it happens to be the 23.6%
retracement of the entire rise since Apr’21 and the 50dma
BANK NIFTY CHART
Weekly price action resulted in a bull candle with a higher high -low and a closed above the last five weeks high but marginally below the crucial 35800 level signaling strength and
continuation of the up move. The elevated support level for the Index is around the level of 34500 as it coincides with the 23.6% retracement (30405-35810) and the 50DEMA
Recording growth for the seventh month in a row, India's exports rose by 48.34 per cent to $32.5 billion in June on account of healthy growth in shipments of petroleum products, gems and jewellery, and chemicals, even as trade deficit stood at $9.37 billion, according to the official data. (BS)
The Ministry of Finance released Rs 75,000 crore of the Rs 1.59-trillion estimated as GST revenue shortfall in a single instalment, to facilitate capital spending by states, besides allowing better management of the pandemic, with most states reeling from severe fiscal stress. (BS)
India's power consumption grew nearly 17 per cent in the first fortnight of July to 59.36 billion units (BU) and returned to pre-pandemic level mainly due to easing of lockdown curbs and delayed monsoon, according to power ministry data. (BS)
India's annual wholesale price inflation eased to 12.07% in June from the previous month's record of 12.94%, despite a spike in costs of fuel and manufactured goods, government data showed on Wednesday. (BS)
The union cabinet on Wednesday extended the Rebate of State and Central Levies and Taxes (RoSCTL) scheme till March 2024, a move aimed at helping the textile exporters. (BS)
Union Road Transport and Highways Minister Nitin Gadkari on Tuesday said the construction of roads was faster than ever. The annual average construction of national highways has recorded an 83 per cent spike in wha t was recorded during 2009-2014, Gadkari shared on his Twitter timeline. (BS)
NTPC said its group companies in this fiscal have achieved the cumulative power generation mark of 100 billion units faster than the previous fiscal. Last year, the group generation had crossed the 100 BU mark on August 7, 2020.
Cadila Healthcare said its wholly-owned subsidiary Zydus Animal Health and Investment has completed sale of its animal healthcare established markets undertaking to Multiples Alternate Asset Management -led consortium for Rs 2,921 crore. Bandhan Bank said its loans loans and advances shrunk by 8 percent in June quarter to Rs 80,128 crore. Total deposits contracted by one percent on a QoQ basis to Rs 77,336 crore. Marico has acquired 60 per cent stake in Apcos Naturals, the owner of Ayurvedic beauty brand ‘Just Herbs' . The stake will be acquired over a period of two years through primary infusion and secondary buy-outs, a joint statement said without disclosing the deal size.
NMDC has approved the Scheme of Arrangement for Demerger between NMDC Limited and NMDC Steel Limited and their respective shareholders.
Hindustan Zinc said its mined metal production rose by 9 per cent to 2,21,000 tonnes in the first quarter of the ongoing fiscal.
•Granules India Limited : Bnp Paribas Arbitrage Buy 1252100 Shares @ Rs. 370.55
•Zicom Electronic Security : Idbi Bank Limited Sell 1000000 Shares @ Rs. 1.45
•Greenpower : Aep Green Power, Limited Sell 14500000 Shares @ Rs. 3.01
•Parsvnath Developers Limi : Il And Fs Financial Services Ltd Sell 5259620 Shares @ Rs. 13.34
•Cmi Limited : Hsbc Small Cap Equity Fund Sell 229700 Shares @ Rs. 52.01
•Indo-National Limited : Hdfc Bank Limited Sell 54107 Shares @ Rs. 1079.32
•Gravissho : Dunearn Investments Mauritius Pte Limited Sell 7025708 Shares @ Rs. 14.83
•Indo-National Limited : Hdfc Bank Limited Sell 35000 Shares @ Rs. 1138.16
•Unitdspr : Recovery Officer I Drt Ii Sell 11350722 Shares @ Rs. 630.93
•Rkforge : Long Term Equity Fund Buy 387000 Shares @ Rs. 749 •Rkforge : Vantage Equity Fund Sell 387000 Shares @ Rs. 749 •Wabag : Long Term Equity Fund Buy 322000 Shares @ Rs. 363.9 •Wabag : Vantage Equity Fund Sell 322000 Shares @ Rs. 363.9
Wipro Ltd.: Net Revenue at Rs. 18467.4 crore, +23.8% YoY and +13.7% QoQ. EBITDA at Rs. 4195.0 crore, +31.6% YoY and +4.2% QoQ. EBITDA Margin at 22.7%, +135 bps YoY and -208 bps QoQ. Net Profit at Rs. 3248.0 crore, +34.7% YoY and +9.2% QoQ.
Larsen & Toubro Infotech Ltd.: Net Revenue at Rs. 3462.5 crore, +17.4% YoY and +5.9% QoQ. EBITDA at Rs. 647.7 crore, +9.4% YoY and -9.5% QoQ. EBITDA Margin at 18.7%, -137 bps YoY and -318 bps QoQ. Net Profit at Rs. 496.8 crore, +19.3% YoY and -9% QoQ. Ashika
HDFC Asset Management Company Ltd.: Net Revenue at Rs. 507.1 crore, +23.2% YoY and +0.8% QoQ. EBITDA at Rs. 381.0 crore, +20.4% YoY and -3.9% QoQ. EBITDA Margin at 75.1%, -178 bps YoY and -368 bps QoQ. Net Profit at Rs. 345.5 crore, +14.3% YoY and +9.3% QoQ.
L&T Finance Holdings Ltd.: NII a t Rs. 1499.4 crore, +13.8% YoY and -7.1% QoQ. Net Profit at Rs. 177.0 crore, +20.1% YoY and -33.4% QoQ.
Just Dial Ltd.: Net Revenue at Rs. 165.4 crore, +1.8% YoY and -5.8% QoQ . EBITDA at Rs. -17.2 crore, Rs. 37.5 crore YoY, Rs. 34.5 crore QoQ. Net Profit at Rs. -3.5 crore, Rs. 83.3 crore YoY, Rs. 33.6 crore QoQ.
Tata Elxsi Ltd.: Net Revenue a t Rs. 558.3 crore, +39.4% YoY and +7.7% QoQ. EBITDA at Rs. 150.0 crore, +61.8% YoY and -10.7% QoQ. EBITDA Margin at 26.9%, +372 bps YoY and -555 bps QoQ. Net Profit at Rs. 113.4 crore, +64.6% YoY and -1.6% QoQ.
Angel Broking Ltd.: Net Revenue at Rs. 462.7 crore, +94.1% YoY and +13.2% QoQ. EBITDA at Rs. 170.9 crore, +145.5% YoY and +16.4% QoQ. EBITDA Margin at 36.9%, +775 bps YoY and +99 bps QoQ. Net Profit at Rs. 121.4 crore, +151.6% YoY and +19.1% QoQ.
FII & DII INVESTMENT (Rs. Cr.)
F&O STOCKS TOP 10
BEST PERFORMERS
WORST PERFORMERS
WEEKLY HIGH
STOCKS 52 WEEK HIGH/LOW
USD INR CHART
CURRENCIES VS INR
Indian Rupee last week mostly remained unchanged with strong money flows in the primary market seems to have halted the surge. However global risk sentiment continues to haunt and would drive the currency going ahead but in absence of major triggers in the forthcoming week
TREASURY AND MONEY MARKET
PRECIOUS METALS AND AGRI COMMODITIES
BRENT CRUDE OIL CHART
CRB INDEX CHART
Index has been on a secular uptrend with intermittent corrections in between. On the daily time frame has been honoring the 50dma for a multiple number of time and as pointed out earlier the Index took support from the said technical parameter last week and witnessed a minor pullback. Hence the elevated support level for the Index is now around 208 level.
Sustaining above the level of 205-208 would maintain a positive outlook in the Index.
CORPORATE ACTION
BUYBACK
BONUS ISSUE
CORPORATE ACTION
STOCK SPLIT/ CONSOLIDATION
CORPORATE ACTION
DELISTING
OTHER
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