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PROBABILITES OF DALAL STREET PROBABILITES OF DALAL STREET ON 10th JULY

PROBABILITES OF DALAL STREET ON 10th JULY 2024

Dear market participants , it was very good day for bulls. Nifty today broke the consolidation border and closed above the 24400. Now we can see the activities of institutional investors and some important points.

  • FII bought 3.86 Laksh index future and in options, they have bought 4.15L calls and 3.38L puts. so they are bullish in futures and indecisive in options.
  • DII’s sold 76708 index futures and in options they bought 3.36L puts and 2078 calls only. so there is negligible bearish.
  • Clients are strong bearish in the future and indecisive in options.
  • If we look at Global markets US markets are slightly green there is no big movement on either side European markets are negative and Asian markets are also somewhat negative.
  • The volatility index was up by 5%, which closed at 14.28. as said in the last report because of budget. it would
  • As per open interest nifty has 24300 followed by 24200 has the highest put seller and   24500 has the highest call seller.

Nifty broke the consolidation and sustained above the resistance level of 24400. now the probability of reaching 24500 is very high in nifty but one should keep in mind that before budget there is less chance of significant move on both sides. So for nifty rallied from 23350. The chance of getting more profit is when one should keenly observe at a support level and enter the bull market.

                                                                                          -By

                                                                              A Ganesh R bhat

10/07/2024 /0 Comments/by
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Reverse Book building

what is Reverse Book building?

A unique process...

Reverse book building is a process used in financial markets, particularly in the context of share buybacks or the delisting of shares from stock exchanges. Unlike traditional book building where companies raise capital by issuing new shares, reverse book building involves the company or a promoter buying back shares from existing shareholders.

In reverse book building, shareholders are invited to tender their shares at a price they deem fair. The company sets a floor price, and shareholders can submit bids above this price. The final buyback price is typically determined based on these bids, reflecting the price at which the majority of shareholders are willing to sell.

Scope of Reverse Book Building

  1. Share Buybacks: Companies use reverse book building to repurchase their own shares from the market. This can help in managing surplus cash, improving financial ratios, or consolidating ownership.
  2. Delisting: When a company decides to delist from a stock exchange, it uses reverse book building to buy out the shares held by public shareholders at a fair price.
  3. Corporate Restructuring: It can be used in restructuring processes where a company wants to reduce the number of outstanding shares or make significant changes in its ownership structure.

Effect of Reverse Book Building

  1. Share Price Impact: The announcement of a buyback can positively impact the share price as it signals confidence from the management in the company’s future prospects.
  2. Shareholder Value: It can unlock value for shareholders who sell their shares at a premium to the market price.
  3. Ownership Concentration: It can lead to higher ownership concentration by promoters or major shareholders, which may impact corporate governance and decision-making.
  4. Liquidity: A reduction in the number of shares available in the market can affect the liquidity of the stock.
  5. Financial Metrics: Metrics like earnings per share (EPS) can improve post-buyback due to a reduced number of outstanding shares, which can positively affect the company’s valuation.



Also Read- CAN TRADING/INVESTING IN STOCKS CONSIDERED AS SECONDARY SOURCE OF INCOME?

“Industry has been telling that they have found problems there… very early we will be taking this forward to the advisory committee. We will say that if you have a requirement for delisting, you can also have a fixed price. If that does not work, then you can try the reverse book building. If that fails, then we will give you time again, may be three years, two years, one year… depending on the discussions we have with the markets and with the advisory committees. That will go a long way in helping companies who don’t want to be listed,”

Ashwani Bhatia

Ashwani Bhatiaa whole-time member of Sebi.

The Securities and Exchange Board of India (SEBI) has been focusing on reverse book building recently to protect investors and ensure market stability. Here are the main reasons:

  1. Fair Valuation for Delisting: Reverse book building ensures a fair and transparent delisting process. Shareholders can propose a price for their shares, helping to find a fair market-driven exit price.
  2. Investor Protection: It protects minority shareholders by allowing them to participate in pricing during buybacks or delisting. This prevents promoters from setting low prices that could harm minority shareholders.
  3. Market Integrity and Transparency: The process promotes transparency and fairness in buybacks and delistings. An open bidding process reduces price manipulation and ensures fair transactions.
  4. Encouraging Corporate Governance: Reverse book building promotes better corporate governance. It ensures companies are accountable to their shareholders and follow fair practices in significant decisions like delisting or share buybacks, building investor confidence.
  5. Enhanced Shareholder Participation: It encourages shareholders to actively participate in corporate decisions, allowing them to express their valuation expectations and ensuring their interests are considered.
  6. Preventing Arbitrage and Market Abuse: The standardized process helps prevent market abuse and arbitrage opportunities that could arise from traditional buybacks or delistings, minimizing unfair advantages.
  7. Adapting to Global Best Practices: SEBI’s approach aligns with global best practices, making the Indian capital markets more attractive to global investors.

09/07/2024 /0 Comments/by
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You can invest on US(United States) stocks also

Motilal Oswal S&P 500 Index Fund Direct Growth

Motilal Oswal Mutual Fund, started in 2016, has Motilal Oswal Financial Services as its sponsor. The fund house is headed by Navin Agarwal as the CEO. As of 31 March 2024, it has an AUM of ₹50,746 Cr. The company has more than 17 lakh investor accounts.

Risk

As provided by the fund house document, this risk is specific to this fund category (Equity). .

Fund Managers

1)Ankush Sood– Experience: 2.87 yrs • Total AUM: 1,89,023 Cr

2)Rakesh Shetty– Experience: 1.62 yrs • Total AUM: 2,34,392 Cr

Launched On- 28 Apr 2020.

Lock-in Period- No lock-in.

Expense ratio- 0.62%.

Benchmark- S&P 500 TR USD

Source-Motilal Oswal S&P 500 Index Fund.

Fund Performance

  • 1 Year Return: 26.81% CAGR
  • 3 Year Return: 13.24% CAGR

Top Holdings

  • Microsoft Corporation (US)
  • Apple Inc. (US)
  • NVIDIA Corporation (US)
  • Amazon.com Inc. (US)
  • Meta Platforms Inc. (US)

Taxation

  • Short-term Capital Gains (held for less than 1 year): 15%
  • Long-term Capital Gains (held for more than 1 year): 10%

09/07/2024 /0 Comments/by
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jubilant foodworks

Add Your Heading Text Here

Jubilant FoodWorks (JUBLFOOD.NSE) has announced a dividend of ₹1.2 with an ex-date of July 12, 2024, and a payment date of September 04, 2024.

Jubilant Foodworks, part of the Jubilant Bhartia Group, operates in the food service industry, managing brands like Domino’s Pizza and Dunkin’ Donuts in India and surrounding regions. The company has expanded its portfolio to include brands like ChefBoss, Hong’s Kitchen, and Ekdum​

The company’s shareholding pattern as of March 2024 shows promoters holding 41.94%, mutual funds 19.98%, and foreign portfolio investors 23.24%​

Business Strengths

Domino’s

The Company has the exclusive rights to develop and operate Domino’s Pizza Restaurants in India, Sri Lanka, Bangladesh and Nepal. The Company launched its first Domino’s Pizza restaurant in Delhi in January 1996. The Company is the largest franchisee for Domino’s brand outside U.S. At present, it operates in India, and through its subsidiary companies in Sri Lanka and Bangladesh.

Popeyes®

The Company has the exclusive right to develop and operate Popeyes® restaurants in India, Bangladesh, Nepal, and Bhutan. Popeyes® was founded in New Orleans in 1972 and has more than 45 years of history and culinary tradition with a unique New Orleans-style menu featuring the iconic chicken sandwich, spicy chicken, chicken tenders, and other regional items.

Dunkin’ Donuts

The Company has the exclusive rights to develop and operate Dunkin’ Donuts Restaurants in India. The Company launched first Dunkin’ restaurant in Delhi in April 2012. Dunkin serves wide variety of donuts, coffee, beverages, sandwiches and other goods.

Hong’s Kitchen

JFL marked its entry into the Chinese cuisine segment with the launch of its first home-grown brand – Hong’s Kitchen. The Company launched first restaurant in Gurugram in March 2019. The restaurant has young, international-looking and trendy design inspired by the colours and the hustle of Asian street markets.



Click here to know more

09/07/2024 /0 Comments/by
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Can trading/investing in stocks considered as secondary source of income?

Can trading/investing in stocks considered as secondary source of income?

It can be a secondary source of income if you have the right strategy, risk management, and knowledge.

Anything that generates income requires skill & knowledge. If we consider trading as a secondary source of income, the following are how we can think of digging some extra income:- 

  • Short-Term Gains: Traders often buy and sell stocks frequently, aiming to profit from short-term price movements. Successful trading can generate additional income regularly.
  • Day Trading: This involves buying and selling stocks within the same trading day. Profits from day trading can supplement primary income, though it requires significant time and expertise.
  • Swing Trading: This involves holding stocks for a few days to weeks to capitalize on expected price swings. It’s less time-intensive than day trading but still requires active management.
  • Working people can’t do trading every day, but Every person in the world can invest irrespective of source of income. Following are the windows open for every group of people in investing.

  • Dividends: Some stocks pay dividends, which are periodic payments to shareholders. Dividend income can provide a steady stream of additional income.
  • Capital Gains: Long-term investors can benefit from capital gains by holding stocks that appreciate over time. When these stocks are sold, the profit realized is considered income.
  • Compound Growth: Reinvesting dividends and gains can lead to compound growth, increasing the value of the investment portfolio and potential income over time.

It looks easy to implement above mentioned plans, but how long we are committed to it defines our consistency & discipline.

                  The following are the points to be considered while implementing the above plan:

  • Risk: Both trading and investing in stocks carry risks, including the potential loss of capital. It’s important to understand these risks and invest money you can afford to lose.
  • Time and Knowledge: Successful trading and investing require time, research, and understanding of market dynamics. Education and staying informed about market trends are crucial.
  • Tax Implications: Income from trading and investing is subject to taxes. Understanding the tax implications and planning accordingly can help maximize net income.

                                                                                         -by

                                                                             Vishal Kumar K R

08/07/2024 /1 Comment/by
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PROBABILITES OF DALAL STREET

PROBABILITES OF DALAL STREET ON 09th JULY 2024

Dear market participants,

today nifty closed in red after 10days of continuous green closings. That is also very negligible bearish sentiments, only 0.01% down. for the next trading session, one should consider the following points.

  • FII bought 3.77 Laksh index future and in options, they have bought 6.73L calls and 4.87L puts so there is clear bullish.
  • DII’s sold 65287 index futures and in options they bought 2.47L puts and 2078 calls only. so there is negligible bearish
  • Clients are indecisive in both the future and in options.

  • If we look at Global markets US markets are neutral there is no big movement on either side Europe markets are negative and Asian markets are also slightly negative.
  • Volatility index up by 7.13%, which closed at 13.60. as expected due to being ahead of budget it is going to rise day by day till events get over
  • As per open interest nifty has 24200 followed by 24000 has the highest put option and 24400 followed by 24500 has call options.

Nifty is trading between 24200 -24400 for the last 3 trading sessions. it is a consolidation period. Still indicates bullish sentiment but pre-budget significance move towards any side has less probability.

                                                                                    -By

                                                                       A GANESH R BAHT.

08/07/2024 /0 Comments/by
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DERIVATIVE SEGMENT – 4

DERIVATIVE SEGMENT – 4

APPLICATION OF INDICES

Traditionally, indices were used to understand the stock market’s overall direction. However, few applications for indexes have emerged in the investment field. A few of the applications are explained below:

  1. INDEX FUNDS – These funds invest in a specific index to generate returns equivalent to the return on the index. These funds invest in index stocks in proportion to which these stocks exist in the index.
  2. INDEX DERIVATIVES – Index derivatives are derivatives contracts that have the index as the underlying asset. Index options and index futures are the most popular derivatives contracts worldwide. Index derivatives are useful as a tool to hedge against market risk.
  3. EXCHANGE TRADED FUNDS – Exchange-traded funds are a basket of securities that trade like stock, on an exchange They have some advantages over other mutual funds as they can be bought and sold on the exchange. Since ETFs are traded on exchanges intraday transaction is possible. Furthermore, ETF can be used as basket trading in terms of the smaller denomination and low transaction cost. the first ETF in the Indian securities market was the nifty BeES, introduced by the benchmark mutual fund in December 2001. prudential ICICI mutual fund introduced SPIcE in January 2003, the first ETF on Sensex.

INDEX MANAGEMENT

Index construction, maintenance and revision process is generally done by specialized agencies. for instance, all NSE indices are managed by a separate company called  “INDIA INDEX SERVICES AND PRODUCTS LTD . ,” a joint venture between standard and poor, national stock exchange and CRISIL LTD.

Index construction is all about choosing the index stocks and deciding on the index calculation methodology. maintenance means adjusting the index for corporate actions like bonus issues, right issues, stock splits, consolidation, mergers, etc. Revision of the index deals with changes in the composition of the index as such ..replacing some existing stocks with new ones, because of changes in the trading paradigm of stocks/interest of market participants.

                                                                              -BY

                                                                A GOWRISH R BHAT.

 

08/07/2024 /0 Comments/by
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Ganesh Green Bharat Limited SME IPO

Ganesh Green Bharat Limited IPO

Application start- 05-07-2024

Application end- 09-07-2024

Allotment begins- 10-07-2024

Refund Initiation- 11-07-2024

Allotment date- 11-07-2024

Listing on exchange- 12-07-2024

About Ganesh Green Bharat Limited

Incorporated in 2016,

Ganesh Green Bharat Limited began as a partnership firm focusing on electrical contracting services. They provide comprehensive services in the supply, installation, testing, and commissioning (SITC) of solar and electrical goods for various government bodies. The company has completed projects under several Central and State Government schemes, such as the Saubhagya Scheme, KUSUM Scheme, and Saur Sujla Yojna. They also work on water supply projects like the Mukhya Mantri Nishchay Quality Affected Yojna and Har Ghar Jal (Jal Jeevan Mission).

Expansion and Renewable Energy Focus

In 2017, Ganesh Green Bharat expanded into the renewable energy sector, becoming an integrated solar energy solutions provider. They offer engineering, procurement, and construction (EPC) services, as well as operations and maintenance (O&M) services for various solar projects, including:

  • Solar home lighting
  • Solar street lights
  • Solar power plants (On-Grid and Off-Grid)
  • Solar high mast lights
  • Solar pumping systems

Ganesh Green Bharat IPO Lot Size

Ganesh Green Bharat IPO Promoter Holding

In 2016, they became a Channel Partner of the Ministry of New and Renewable Energy (MNRE). By 2018, they completed a major project involving 16,486 SPV home lighting systems in Rajasthan through the Rajasthan Renewable Energy Corporation Limited (RRECL).

Water Supply Projects

Ganesh Green Bharat also designs, constructs, supplies, tests, and commissions water supply projects. These projects include constructing piped water supplies with polyethylene water storage tanks to provide drinking water through functional household tap connections in villages. The projects also involve all allied works and successful trial runs.

 

Ganesh Green Bharat Limited Financial Information

Government Contracts and Clients

The company bids for tenders issued by government authorities and has worked with departments in eight states, including:

  • Gujarat Industrial Development Corporation
  • Ahmedabad Municipal Corporation
  • Rajasthan Renewable Energy Corporation Limited
  • Dakshin Gujarat Vij Company Limited
  • Gujarat Energy Development Agency
  • Chhattisgarh State Renewable Energy Development Agency
  • Ajmer Vidhyut Vitaran Nigam Limited
  • Jodhpur Vidhyut Vitaran Nigam Limited
  • Jharkhand Renewable Energy Development Agency
  • Jaipur Vidhyut Vitaran Nigam Limited
  • Public Health Engineering Departments in Bihar, Madhya Pradesh, and Rajasthan
  • Uttar Pradesh New and Renewable Energy Development Agency
  • NHAI through Kalthia Engineering Construction Ltd (Maharashtra)

They also sell solar PV modules to private sector organizations.

Key Performance Indicator (KPI)

Ganesh Green Bharat Limited is preparing for its Initial Public Offering (IPO). The funds raised from the IPO will be used for:

  • Repaying part or all of certain outstanding borrowings
  • Funding capital expenditure for installing additional plant and machinery at their factory
  • Meeting working capital requirements
  • General corporate purposes

These strategic initiatives aim to strengthen the company’s financial position and support its growth and expansion plans.

08/07/2024 /0 Comments/by
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Ambey Laboratories Limited IPO

Ambey Laboratories Limited- IPO

Application start- 04-07-2024

Application end- 08-07-2024

Allotment begins- 09-07-2024

Refund Initiation- 10-07-2024

Allotment date- 10-07-2024

Listing on exchange- 11-07-2024

 

About Ambey Laboratories Limited

Incorporated in 1985, Ambey Laboratories has been manufacturing agrochemical products for almost four decades, focusing on crop protection. The company specializes in producing ‘2,4-D base chemicals’ and places a strong emphasis on quality and strict adherence to Environmental, Health, and Safety (EHS) regulations.

Key Features and Facilities

  • State-of-the-Art Manufacturing: Their manufacturing facility, located on a 5-acre site in Behror, Rajasthan, uses advanced technology like Programmable Logic Controller (PLC) and Supervisory Control systems.
  • Quality Assurance: They have a dedicated Quality Assurance Department that conducts testing through HPLC, GC, and UV at every stage of production to ensure high standards.

Network and Operations

Ambey Laboratories operates within a network involving Aromatic Rasayan Private Limited and OFB Tech Private Limited:

  • Aromatic Rasayan Private Limited: They engage in a barter system, exchanging raw materials and finished goods.
  • OFB Tech Private Limited: Transactions are based on purchase and sale orders.

This interconnected relationship helps streamline the supply chain, improve operational efficiency, and provide mutual support.

Ambey Laboratories IPO Lot Size

Ambey Laboratories IPO Promoter Holding

Ambey Laboratories Limited Financial Information

Competitive Advantage

Ambey Laboratories competes based on several factors, including:

  • Quality of products
  • Strong client relationships
  • Good Reputation
  • Skilled employees
  • Market focus
  • Timely delivery
  • Competitive Pricing

Their competitive edge lies in offering cost-effective and integrated solutions, prioritizing customer satisfaction, and maintaining high reliability and quality standards.

08/07/2024 /0 Comments/by
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Surge in Railway Stocks Despite Market Weakness

Surge in Railway Stocks Despite Market Weakness: Key Announcements Fuel Investor Confidence.

The Indian stock market experienced some weakness on Monday, but railway stocks showed strong performance. Key players like Ircon International, Rail Vikas Nigam Limited (RVNL), Indian Railway Finance Corporation (IRFC), and Indian Railway Catering and Tourism Corporation (IRCTC) all saw significant gains in their share prices.

Here’s a detailed breakdown of the stock movements:

  1. RVNL (Rail Vikas Nigam Limited): RVNL shares surged over 12% intraday, reaching a new peak. This strong upward movement highlights investor confidence in the company’s prospects.

  2. IRFC (Indian Railway Finance Corporation): IRFC shares climbed to a new peak of ₹206, with an intraday rise of around 9%. This indicates robust buying interest and positive sentiment around the stock.

  3. Ircon International: The share price of Ircon International hit a new record high of ₹334.50 apiece on the NSE, logging over a 7% rise. This reflects strong market enthusiasm for the company’s performance and outlook.

  4. IRCTC (Indian Railway Catering and Tourism Corporation): IRCTC shares increased by nearly 2%, showing steady growth and investor interest.

Reasons Behind the Surge in Railway Stocks

The significant rise in railway stocks, despite a generally sideways trend in the broader Indian stock market (Dalal Street), can be attributed to recent announcements by the Minister for Railways, Ashwini Vaishnav. The key points from the announcement include:

  • Introduction of 2,500 New General Passenger Coaches: This move is expected to enhance the capacity and quality of general passenger services, potentially boosting passenger traffic and revenue for railway companies.

  • Addition of 10,000 New Coaches: This large-scale addition signifies a major expansion in the railway’s operational capabilities, which can lead to increased efficiency and service improvements.

  • Production of 50 New Amrit Bharat Trains: These high-speed and luxury trains are expected to provide a premium travel experience, attracting more passengers and generating higher revenue.

 

Why Are Railway Stocks Rising?

Railway stocks are going up despite a weak overall market because of recent announcements by the Minister for Railways, Ashwini Vaishnav. Key points from the announcement include:

  • 2,500 New General Passenger Coaches: This will increase the capacity and quality of general passenger services, likely boosting passenger traffic and revenue.

  • 10,000 New Coaches: This large addition will expand the railway’s capabilities, leading to better efficiency and service.

  • 50 New Amrit Bharat Trains: These high-speed and luxury trains are expected to offer a premium travel experience, attracting more passengers and generating higher revenue.

These plans aim to modernize and expand India’s railway network, improving service quality and capacity. As a result, investors are optimistic about the growth potential and profitability of railway companies, leading to strong buying activity in their stocks.

These strategic initiatives aim to modernize and expand the Indian railway infrastructure, improving service quality and operational capacity. As a result, investors are optimistic about the growth potential and profitability of railway companies, driving the strong buying activity in their stocks.

In summary, the recent surge in railway stocks is primarily driven by the government’s ambitious plans for expanding and modernizing the railway network, which has significantly boosted investor confidence in the sector. Additionally, the Union Budget expectations of a special focus on the railway infrastructure are working as a catalyst for this upward movement.

08/07/2024 /0 Comments/by