In Monday’s trading session, Bank Nifty dived 1.35%. PSU Banks witnessed a steep fall of 2.44% and Private banks fell 1.78%.
We expect intraday range could be 30,633-31,726 with sideways to negative momentum & broader range could be expected between 30,342 to 32,015 zone for this week.
Nifty Intraday Outlook
In Monday’s session, Nifty experienced a highly volatile trading session after the drag in the market by Reliance was recovered by an uplift in banking sector.
However, in the second half of the session, after the news of tensions between India and China, the markets again started its downfall and ended in red.
We expect intraday range could be 13,998-14,502 with sideways to negative momentum while broader range could be 13,856 to 14,657.
In Friday’s trading session, Bank Nifty nose dived 3.5%. PSU Banks and Private banks lost 3.1% 3.4% respectively.
We expect intraday range could be 30,367-31,743 with sideways to positive momentum & broader range could be expected between 29,984 to 32,178 zone for this week
Nifty Intraday Outlook
In Friday’s trading session, Nifty closed in red, after a highly volatile trading session as the investors booked their profits ahead of a long weekend.
The equity markets are expected to tumble in today’s trading session
We expect intraday range could be 14,072-14,646 with sideways to positive momentum while broader range could be 18,873 to 14,851.
Founded in 1999, Stovekraft manufactures
cooking appliances under Pigeon and Gilma brands. Under the “Pigeon”
brand, it has 651 distributors in 27 states & 5 union territories & 12
distributors for exports. It has distribution network in countries including USA,
Mexico, Kenya, Qatar, Sri Lanka, Fiji, Bahrain, Kuwait.
It has manufacturing facilities at Bangalore
(Karnataka) and Baddi (Himachal Pradesh).
Strengths
Diversified
product portfolio
Well
connected distribution network
Strong
manufacturing capability
Strategies
Increase
geographical reach
Scale
up branding, promotional & digital activities
Expand
portfolio in existing product segments
Invest
in new plants and increase automation in existing manufacturing facilities
Issue Highlights
Valuation
The company
is getting listed at a trailing 12M P/E of 34.5, which is below the industry
P/E of 58.8.
Utilization of Funds
Repayment/pre-payment, in full or part, of certain borrowings (INR 76 Crores)
In Thursday’s trading session, Bank Nifty lost 0.8%. PSU Banks and Private banks lost 3.2% 0.7% respectively.
We expect intraday range could be 31,794-32,819 with sideways to positive momentum & broader range could be expected between 31,597 to 33,099 zone for this week.
Nifty Intraday Outlook:
In yesterday’s trading session, Nifty closed in red, after shedding the gains of earlier trading session, when the market rose after the inauguration of Joe Biden as the US President.
Also, investors remained positive on the continued expectations of additional stimulus package by the US government.
Additionally, better than expected results season has been aiding the gains in equity market.
We expect intraday range could be 14,363-14,814 with sideways to positive momentum while broader range could be 14,212 to 14,952.
In yesterday’s trading session, Bank Nifty gained 0.4%. PSU Banks outperformed by 2.0% and Private banks rose 0.1%.
We expect intraday range could be 32,038-33,019 with sideways to positive momentum & broader range could be expected between 31,848 to 33,243 zone for this week.
Nifty Intraday
Outlook:
In yesterday’s trading session, Nifty closed in green for the second consecutive day, as the traders remained optimistic ahead of Joe Biden’s inauguration as US president.
Traders also remained buoyant on the expectations of new additional massive round of stimulus for the economy by the US economy.
We expect intraday range could be 14,373-14,861 with sideways to positive momentum while broader range could be 14,222 to 15,021.
After its inception in 2000, Indigo Paints – the fifth largest company in the paint industry is all set to smash the dalal street. Being the fastest growing company in the sector, the company has a huge potential to give remarkable equity gains. The issue includes a reservation of up to 70,000 equity shares for subscription by eligible employees.
Strengths
Consistent & fastest revenue growth
Differentiated products leading to greater brand recognition
Extensive distribution network
Expertly located manufacturing facilities
Strong brand equity
Well-qualified and experienced management team
Valuation
The company reported its EPS at 10.49,bringing the IPO valuation to a P/E of 142 at upper price band, against sector PE of 89.02. Though it is costlier, we are positive towards the issue based on its strengths.
Utilization of Funds
Background highlights of the company in brief
Indigo Paints had commenced its journey in the year 2000, manufacturing lower-end Cement paints.
The company gradually expanded its range to cover most segments of water-based paints like Exterior Emulsions, Interior Emulsions, Distempers, Primers, etc.
As an additional services to its clients, the company also offers ready-made colour combinations for living room, bed room, kitchen, children’s room, bathroom, offices, among others. It also gives an option to try different colour combinations on its website to give visual of the after-effect.
Indigo Paints has made its place in the top five players in the paint industry in the country.
It is the fastest growing paint companies in India, and is the fifth largest in company in the Indian decorative paint industry in terms of our revenue from operations for Fiscal 2020.
Indigo Paints is the first company that started manufacturing some of the differentiated products like Metallic Emulsions, Bright Ceiling Coat Emulsions, Tile Coat Emulsions, Dirt proof & Waterproof Exterior Laminate, Floor Coat Emulsions, Exterior and Interior Acrylic Laminate, and PU Super Gloss Enamel.
The company has created an extensive distribution network across 27 states and seven union territories as of 30 Sep 2020, and has installed tinting machines across its network of dealers.
As of 30 Sep 2020, the company owns and operates three manufacturing facilities located in Jodhpur (Rajasthan), Kochi (Kerala) and Pudukkottai (Tamil Nadu) with an aggregate estimated installed production capacity of 101,903 KLPA for liquid paints and 93,118 MTPA for putties and powder paints.
The company also intends to expand its manufacturing capacities at its facility at Pudukkottai, by adding capacities to manufacture water-based paints to cater to the growing demand for these paints.
The proposed installed production capacity of the expansion unit is 50,000 KLPA and it is expected to be operational during Fiscal 2023.
Briefing about directors & key managerial personnel
In Friday’s session, Nifty witnessed its biggest drop in almost a month, amid global cues, after US President-elect Joe Biden’s USD 1.9-trillion Covid-19 relief plan triggered concerns over an increase in corporate taxes.
We expect intraday range could be 14,183-14,698 with sideways to negative momentum while broader range could be 13,991 to 14,834.
Bank Nifty Intraday Outlook:
In Friday’s trading session, Bank Nifty lost 0.84%. PSU Banks witnessed a steep fall of 2.05% and Private banks fell 0.96%.
We expect intraday range could be 31,692-32,748 with sideways to negative momentum & broader range could be expected between 31,399 to 33,052 zone for this week.
Daily Market StatisticsMajor Global and Domestic Economic EventsResults Calendar
Indian Railway Finance Corporation (IRFC), the financing arm of Indian Railways is all set to hit the primary markets to raise INR 4,633.3 crores through IPO. This issue will constitute of up to 13.64% of the post issue paid-up equity share capital of the company.
The issue includes a reservation of
equity shares worth INR 50 lakh for subscription by eligible employees.
Strengths
Monopoly in the market
Experienced management
team
Stable growth in
revenue stream
Great credit ratings:
CRISIL – AAA/A1+, ICRA – AAA/A1+, and CARE – AAA/A1+. (Long term / short term)
Key role in Indian
Railways growth
Valuation
The company is
getting listed at 12 months trailing P/E of 14.2 at upper price band. As IRFC
has monopoly in the market, it can’t be compared to other NBFCs.
Utilization of Funds
Background highlights of the company in brief
Indian Railway Finance Corporation (IRFC) is a financing arm of Indian Railways. It was incorporated on 12th December, 1986 as a wholly owned Government entity.
IRFC is a Schedule ‘A’ Public Sector Enterprise under the administrative control of the Ministry of Railways, Government of India. It is also registered as Systemically Important Non–Deposit taking Non-Banking Financial Company (NBFC – ND-SI) and Infrastructure Finance Company (NBFC- IFC) with Reserve Bank of India (RBI).
Its principal function is to raising and acquiring funds for Indian Railways to attain rolling stock assets like wagons, coaches, electric units, trucks, locomotives). It also looks after financing for the company’s improvement, expansion, and assets management.
IRFC also has a presence in lending activities and has been lending to various entities in Railway sector like Rail Vikas Nigam Limited (RVNL), Railtel, Konkan Railway Corporation Limited (KRCL), Pipavav Railway Corporation Limited (PRCL) etc.
IRFC funds about 79 per cent of the railways’ wagons, coaches and about 85 per cent of engines that make up the rolling stock.
IRFC’s has also been diversifying its borrowing portfolio in terms of instruments, markets and investors which has led to the Company, meeting the targeted borrowings year after year, through issue of both taxable and tax-free bonds, term loan from banks/financial institutions besides off shore borrowings, at competitive market rate.
The total value of Rolling Stock Assets financed by IRFC for the year 2019-20 was 33,544 Crs.
The company has maintained the highest possible credit ratings for an Indian issuer both for long term domestic and short term borrowings and have received the highest credit ratings from CRISIL – CRISIL AAA and CRISIL A1+, ICRA – ICRA AAA and ICRA A1+, and CARE – CARE AAA and CARE A1+, respectively.
In Fiscals 2017, 2018 and 2019 (revised estimate), the company was responsible for financing 72%, 93% and 82%, respectively, of the Indian Railway’s total rolling stock.
Briefing about directors & key managerial
personnel
During the last week, prices of base metals
like zinc, lead, and copper rose as the bulls made a comeback. Whereas, the
prices of gold and silver hit the bottom by dipping 2% and 2.3%. Gold slipped
below $1,900 mark during the week to close at $1,891.3 and silver slipped below
its $27 to close at $26.645. In the initial days of the week, both the metals
were on a rising trend due to the political uncertainty in the US Senate. In
addition, numbers of the US ADP Non-Farm Employment Change fell by 123,000 for
the month of December 2020, which is much lower than the expectations of
+60,000. That too helped in the uplift. However, as the US Political tensions
subsided a bit after the Democrats won two seats in the Senate, the Gold prices
made a sharp decline.
As per the media reports, Pfizer Inc. and
BioNTech’s COVID-19 vaccine proved effective in the UK and South Africa against
a key mutant of the new variant of corona virus, which is highly transmissible.
This news also weighed on the gold and silver prices. Along with these factors,
the US Treasury yields soared above 1% earlier in the week, which also had a
negative impact on gold and silver prices. The US Dollar traded higher at 89.85
against the basket of six currencies.
During the current week, important economic
data such as US’ 10-year bond auction on 12th January, Eurozone’s
Industrial Production for the month of November 2020 and US’ 30-year old
auction on 13th January, US’ unemployment claims on 14th January,
UK’s GDP for the month of December 2020, UK’s industrial production and
manufacturing production for the month of November 2020, and US’ industrial
production for the month of December 2020 on 15th January, will be
released. Investors need to keep an eye on these data for the week as they can
have an effect on both, base metals commodities and bullion market commodities.
In the current week, we expect gold in COMEX
market to be in the range of $1,922 to $1,769, while silver is expected to be
in the range of $26.8 to $19.6. Whereas, as per our prediction for bullion
market traders, in gold contract futures, we advise to enter at the price of
48,100 with a stop loss of 46,955 and a target of 51,300.
In Monday’s trading session, Bank Nifty lost 0.27%. Private Banks and PSU Banks lost 0.39% and –1.45% respectively. We expect intraday range could be 31,607-32,452 with sideways to positive momentum & broader range could be expected between 31,319 to 32,737 zone for this week.
Nifty Intra Outlook:
Nifty rose by 0.98% in yesterday’s session after the results session started on a positive note, and India commenced COVID-19 vaccination. We expect intraday range could be 14,253-14,626 with sideways to positive momentum while broader range could be 14,149 to 14,831.
Daily Market StatisticsMajor Global and Domestic Economic EventsDisclaimer
