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PROBABILITES OF DALAL STREET ON 19th JULY 2024

PROBABILITES OF DALAL STREET ON 19th JULY 2024

Dear market participants, today in the 1st half of the trading session there was volatility in nifty. 1st it took support at 24500 and again came back to the same level and went up to 24800,  once again nifty made fresh all-time high. We have to look at the following points for the next trading session.

  • FII bought 3.49 Laksh index futures and in options, they bought 1.59L so they are bullish in derivatives. In cash, they purchased 5484cr.
  • DII’s sold 82043 index future and in options they sold 3.84L. In cash, they sold 2905cr
  • Clients are medium bearish in the future and in options they are indecisive.
  • If we look at Global markets, US markets are medium bearish, European markets are positive, and Asian markets are mixed. 
  • The volatility index rose  02%, which closed at 14.51.   
  • As per open interest nifty has 24500 followed by 24400 has the highest put writer. There is a call writer at 24500

Based on a 15-minute time frame nifty has good support at 24662 and there is no resistance. For bulls, there is one positive news is Infosys ADR up by 9%. Tomorrow it will impact the market and if any dip happens there will be a good opportunity for buying. but the probability of profit is high when you buy at a support level that is 24662 with a strict stop loss as of now sentiment is bullish.

 

                                                                                           -By

                                                                                 A Ganesh R Bhat



also read- Q1 RESULT ANNOUNCEMENT TODAY

18/07/2024 /0 Comments/by
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BIOCON Q1: DIIs STAKE INCREASED TO 14.3% FROM 13.68 %

BIOCON Q1: DIIs STAKE INCREASED TO 14.3% FROM 13.68 %

Biocon Limited, a major player in the biopharmaceutical sector, has seen notable changes in its shareholding patterns as reported for Q1. Here are the details elaborated:

Domestic Institutional Investors (DIIs)

  • Increase in Stake: DIIs have increased their stake in Biocon to 14.3%, up from 13.68% in the previous quarter.
  • Implication: This increase reflects a growing confidence among domestic institutional investors in Biocon’s business model and growth prospects. It indicates a positive outlook from domestic financial institutions, mutual funds, and insurance companies, which often signals stability and potential for growth in the company’s performance.

Foreign Institutional Investors (FIIs)

  • Increase in Stake: FIIs have increased their stake to 5.9%, up from 5.63% in the previous quarter.
  • Implication: The increase in FII stake indicates enhanced interest and confidence from international investors. This can be attributed to Biocon’s expanding global footprint, robust pipeline of biosimilars and novel biologics, and strategic acquisitions that bolster its market position. Higher FII investment is often seen as a positive sign, reflecting global investor confidence in the company’s potential.

Quant Mutual Fund

  • Previous Stake: Quant Mutual Fund previously held a 1.24% stake in Biocon.
  • Current Status: The mutual fund is no longer listed among the major shareholders in the current quarter.
  • Implication: The absence of Quant Mutual Fund’s stake in the current quarter might indicate a strategic portfolio rebalancing or profit booking by the mutual fund. It could also reflect a shift in investment strategy, possibly moving to other sectors or companies that align better with their current investment goals.



Also read VEDANTA OPENS QIP, SETS FLOOR PRICE

18/07/2024 /0 Comments/by
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Q1 result announcement today

Q1 results of various companies announced on 18/07/2024

MENON BEARINGS Q1

NET PROFIT AT 4.8 CR V 7.3 CR(YOY)
REVENUE AT 39.5 CR V 54.5

EBIDTA AT ; 7.5CR V 11.8CR (YOY)
MARGINS AT; 18.98% V 21.69%

DECLARED DIVIDEND 2RS/SH

 

NewgenSoftware reports Q1 results

Net Profit down 55% at ₹47.6 cr Vs ₹105.3 cr (QoQ)

Revenue down 16% at ₹315 cr Vs ₹375.3 cr (QoQ)

EBIT down 65.4% at ₹40 cr Vs ₹115 cr (QoQ)

Margin at 13% Vs 31% (QoQ)

Central Bank of India net profit surges 110% to Rs 880 crore; asset quality improves

Central Bank of India reported a 110 percent jump in net profit for the June quarter at Rs 880 crore. The lender had posted a profit of Rs 418 crore in the year-ago period.

Here are more details:

 Gross NPA falls to 4.54%

 Interest Earned at Rs 8,335 crore

 Provisions & Contingencies Rs 1,191 crore

Provisions for NPA at Rs 1,322 crore

 Net NPA at 0.73%

KARUR VYSYA Q1

OPERATING PROFIT DOWN 14 % TO 745 CR (QOQ)

PROVISON DOWN 55 % TO 132 CR (QOQ)

GROSS NPA AT 1.32 % V 1.4 % (QOQ)

NET NPA AT 0.38 % V 0.40 %

ABSOLUTE GROSS NPA DOWN 2 % TO 1024 CR *QOQ

NET NPA DOWN 1 % TO 293 CR (QOQ)

POLYCAB Q1

NET PROFIT AT 395.6 CR V 399 CR (YOY)
REVENUE AT 4698 CR V 3989 CR

WIRES REVENUE UP 12 % TO 3942 CR (YOY)

FMEG UP 23 % TO 385 CR (YOY)

OTHER BIZ UP 241 % TO 519 CR (YOY)

 
503:11 PM
 

IDFC Q1

DIIs STAKE INCREASED TO 14.58% FROM 13.69%

FIIs STAKE REDUCED TO 20.82% FROM 20.99%

GOVT PENSION FUND INCREASED STAKE TO 2.54% FROM 2.37%.

 

Tata Communications reports –Q1 earnings

Net profit down 13% at ₹333 cr vs ₹382 cr (YoY)

Revenue up 18% at ₹5,633.4 cr vs ₹4,771.4 cr (YoY)

EBITDA up 9.7% at ₹1,124 cr vs ₹1,024 cr (YoY)

Margin at 20% vs 21.5% (YoY)

Board approves fundraise of up to ₹2,000 cr via NCDs on a private placement basis

Data services revenue up 20% YoY at ₹4,694 cr12103:30 PM

 



Also read- BAJAJ AUTO’S Q1 RESULTS

18/07/2024 /1 Comment/by
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FINANCE JOURNEY-3

what are secured and unsecured loans?

Secured Loans

Definition: Secured loans are loans that are backed by collateral. This means the borrower pledges an asset (like a car, house, or savings account) as security for the loan. If the borrower defaults on the loan, the lender can seize the collateral to recoup their losses.

Examples:

  1. Home Loans (Mortgages):
    • Example: A person takes a loan to buy a house. The house itself is the collateral. If the borrower fails to repay the loan, the lender can foreclose on the house and sell it to recover the loan amount.
  2. Auto Loans:
    • Example: A person takes a loan to buy a car. The car is the collateral. If the borrower defaults, the lender can repossess the car.
  3. Secured Personal Loans:
    • Example: A borrower uses their savings account or certificates of deposit (CDs) as collateral to get a loan. If they default, the lender can take the savings or CDs.

      Advantages:

      • Lower interest rates due to reduced risk for the lender.
      • Higher borrowing limits.
      • Longer repayment terms.

      Disadvantages:

      • Risk of losing the collateral if the loan is not repaid.

Unsecured Loans

Definition: Unsecured loans are loans that are not backed by any collateral. The lender relies on the borrower’s creditworthiness and promises to repay. Because there is no collateral, these loans typically have higher interest rates.

Examples:

  1. Personal Loans:
    • Example: A borrower takes out a personal loan for medical expenses, travel, or debt consolidation without pledging any assets.
  2. Credit Cards:
    • Example: A person uses a credit card to make purchases. The borrowed amount is unsecured and based on the individual’s credit history.
  3. Student Loans:
    • Example: A student borrows money to pay for their education without collateral. Repayment is based on the borrower’s future income.

Advantages:

  • There is no risk of losing assets.
  • Simpler and quicker approval process.

Disadvantages:

  • Higher interest rates due to increased risk for the lender.
  • Lower borrowing limits.
  • Shorter repayment terms.

Most Popular Loan Type in India

In India, the most popular type of loan is the home loan (secured loan).

Reasons:

  1. Cultural Importance of Homeownership:
    • Owning a home is a significant milestone and a matter of pride in Indian culture. People prefer investing in property, leading to a high demand for home loans.
  2. Government Incentives:
    • The Indian government offers various incentives, such as tax benefits on home loan interest payments and principal repayments, making home loans attractive.
  3. Longer Tenure and Lower Interest Rates:
    • Home loans generally have longer repayment tenures and lower interest rates compared to unsecured loans, making them more manageable for borrowers.
  4. Growing Real Estate Market:
    • The expanding real estate market and increasing urbanization have driven the demand for home loans.

In summary, secured loans like home loans are prevalent in India due to cultural preferences for homeownership, government incentives, and the economic benefits they offer to borrowers.

                                                                          – Source collected By

                                                                              Vishal Kumar K R



Click here to read FINANCE JOURNEY- 2



Click here to read FINANCE JOURNEY-1

17/07/2024 /3 Comments/by
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DERIVATIVE SEGMENT- 9

INTRODUCTION TO OPTIONS

An option is a contract that gives the right, but not an application, to buy or sell the underlying asset on or before a stated date /day. the party taking a long position, buying the option is called the buyer/holder of the option and the party taking a short position, selling the option is called the seller/writer of the option.

                                  Options are categorized into two types – CALL OPTIONS AND PUT OPTIONS. Option, that gives the buyer a right to buy the underlying asset, is called a call option and the option that gives the buyer a right to sell the underlying asset, is called a put option.

IMPORTANT TERMS IN OPTIONS

  1. INDEX OPTION – these options have index as the underlying asset . for example options on Nifty, Sensex , etc..
  2. STOCK OPTION– These options have individual stocks as the underlying asset . for example . option on tata power , TCS etc…
  3. BUYER OF AN OPTION – The buyer of an option is one who has a right but not the obligation in the contract . for owning this right , he pays a price to the seller of this right called “ option premium” to the option seller.
  4. WRITER OF AN OPTION – The writer of an option is one who receives the option premium and is thereby obliged to sell /buy the asset if the buyer of option exercises his right.
  5. AMERICAN OPTION – The owner of such option can exercise his right at any time on or before the expiry date /day of the contract.
  6. EUROPEAN OPTION – The owner of such option can exercise his right only on the expiry date / day of the contract . in INDIA, index options are EUROPEAN .
  7. OPTION PRICE– It is the price which the option buyer pays to the option seller.
  8. LOT SIZE – Lot size is the number of units of underlying asset in a contract . lot size nifty is 25 and bank nifty 15.
  9. EXPIRATION DAY – The day on which a derivative contract ceases to exist.
  • SPOT PRICE – It is the price at which the underlying asset trades in the spot market .                                                                                                                                                   -By                                                                                                  A Gowrish R Bhat



Click here to read DERIVATIVE SEGMENT – 8

16/07/2024 /1 Comment/by
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Rs 8,000-crore QIP proceeds to repay Oaktree, Deutsche, Union Bank- vedanta

Add Your Heading Text Here

 

Vedanta Limited plans to use the Rs 8,000 crore raised from its QIP offer to partially or fully repay the debt owed to Oaktree Capital, Deutsche Bank, and Union Bank of India, according to offer documents filed by the company. The floor price for the QIP, which opened on July 15, is set at Rs 461.26 per share.

The primary aim is to repay or prepay certain outstanding borrowings of the company and its subsidiary, THL Zinc Ventures Ltd. A small portion of the proceeds will go towards general corporate purposes. As of June 25, Vedanta owed Rs 17,470 crore to these lenders: Rs 2,500 crore to Oaktree through debentures, approximately Rs 7,470 crore through a dollar-loan facility, Rs 6,400 crore to Union Bank, and Rs 1,100 crore to Deutsche Bank.

Repaying these borrowings will help Vedanta reduce its overall debt, lower debt servicing costs, improve its debt-equity ratio, and allow better use of internal funds for business growth and expansion. This move will also enable the company to raise resources at competitive rates for future business opportunities.

 



Also read- VEDANTA OPENS QIP, SETS FLOOR PRICE

Vedanta aims to cut its standalone debt by $3 billion over the next three years. As of March 31, the company reported a reduction in net debt to Rs 56,338 crore, down Rs 6,155 crore from the previous quarter.

In June, Vedanta’s subsidiary Finsider International accepted a proposal to sell a 2.6% stake, worth Rs 4,379.7 crore, to institutional investors.

Source:- Money control

16/07/2024 /0 Comments/by
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Bajaj Auto’s Q1 results exceeded expectations with an 18% year-on-year rise in net profit, reaching Rs 1,988 crore.

Bajaj Auto Ltd reported a consolidated net profit of Rs 1,941.79 crore for Q1 FY25, an 18% increase year-on-year, driven by strong demand, robust 2-wheeler sales, and higher realizations. Revenue for the April-June quarter rose 16% year-on-year to Rs 11,932 crore, thanks to a better product mix favoring premium vehicles, leading to a higher average selling price (ASP).

These results exceeded analysts’ expectations. A Moneycontrol poll of seven brokerage estimates had predicted Bajaj Auto’s net profit growth at 18% year-on-year to Rs 1,965 crore and revenue growth at 14% to Rs 11,793 crore.

The company experienced strong export growth, with revenue increasing in double digits year-on-year. Its domestic business also maintained momentum, achieving its ninth consecutive quarter of double-digit growth. The popular bike Pulsar continued its double-digit growth trend, supported by a focus on premiumization.

Source: moneycontrol



Click here to see the view of tata steel CEO



Disclaimer

16/07/2024 /1 Comment/by
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Don’t see change in UK strategy

Don't see change in UK strategy: Tata Steel Chairman N Chandrasekaran

Tata Steel’s strategy in the United Kingdom remains unchanged despite political shifts in the UK government. This reassurance was provided by the company’s Chairman, N Chandrasekaran, in response to shareholder concerns regarding potential impacts on the company’s restructuring plan.

The strategy in question involves a significant £1.25 billion investment plan that Tata Steel agreed upon with the Conservative party-led UK government in September of the previous year. Central to this plan is a substantial transition towards greener steelmaking processes. This includes a £500 million grant from the UK government aimed at supporting this shift.

The core aspect of Tata Steel’s strategy is the transition from traditional, emission-intensive blast furnace operations to more environmentally friendly steelmaking using electric arc furnaces (EAF). This move is in line with broader industry trends towards sustainability and reducing carbon emissions. Electric arc furnaces are considered a greener alternative because they use electricity to melt scrap steel or direct reduced iron, significantly lowering the carbon footprint compared to blast furnaces, which rely on coal and other fossil fuels.

Despite the concerns arising from the change in government, Tata Steel’s commitment to this green transition in the UK underscores its dedication to sustainability and aligning with global environmental standards. The company’s steadfast approach suggests a long-term vision that transcends short-term political changes, focusing on achieving significant reductions in carbon emissions and enhancing the sustainability of its operations.



Vedanta QIP report



Disclaimer

16/07/2024 /1 Comment/by
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Vedanta opens QIP, sets floor price

Vedanta opens QIP, sets floor price.

 

Vedanta Ltd has set the floor price for its Qualified Institutional Placement (QIP) issue at Rs 461.26 per share, as announced on July 15. This move follows shareholder approval on June 21 to raise up to Rs 8,500 crore through securities issuance. The QIP aims to optimize Vedanta’s capital structure and enhance shareholder value.

Citi, JM Financial, and Nuvama are likely the bankers for the QIP issue, according to CNBC-TV18. QIP allows companies to quickly raise funds by issuing shares or convertible securities to institutional investors like mutual funds, venture capital funds, insurance companies, and foreign institutional investors.

This fundraising is part of Vedanta’s strategy to reduce its standalone debt by $3 billion over the next three years. As of March 31, Vedanta’s net debt stood at Rs 56,338 crore, a reduction of Rs 6,155 crore from the previous quarter.

Recently, Vedanta’s subsidiary, Finsider International, accepted a proposal to sell a 2.6 percent shareholding worth Rs 4,379.7 crore to institutional investors. On July 15, Vedanta’s shares closed over 2 percent higher at Rs 459.45 on the NSE, marking a nearly 80 percent gain for the year.

In the future Vedanta planning to separate its business into 6 new entities. It may be a strategic move from BOD to attract investors.



Click here to DEN results



Disclaimer

16/07/2024 /3 Comments/by
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DERIVATIVE SEGMENT – 8

HEDGING

Hedging is the purchase of one asset with the intention to reduce the risk of loss from another asset.

IMPORTANCE TERMS IN HEDGING

  • LONG HEDGE – Long hedging is the transaction in which we hedge our position in the cash market by going long in the futures market. for example, we expect to receive some funds in the future and want to invest the same amount in the securities market. we have not yet decided on the specific company/companies, where investment is to be made. we expect the market to go up shortly and bear the risk of acquiring the securities at a higher price.
  • SHORT HEDGE – A short hedge is a transaction when the hedge is accomplished by going short in the futures market. for instance, assume we have a portfolio and want to liquidate shortly but we expect the prices to go down shortly This may go against our plan and may result in a reduction in the portfolio value.  to protect our portfolio’s value, today, we can short index futures of an equivalent amount. the amount of loss made in the cash market will be partly or fully compensated by the profits on our future position.

  • CROSS HEDGE – When a futures contract on an asset is not available, market participants look forward to an asset that is closely associated with their underlying and trade in the futures market of that closely associated asset, for hedging purposes. they may trade in futures in this asset to protect the value of their asset in the cash market. this is called cross hedge.
  • HEDGE CONTRACT MONTH – Hedge contract month is the maturity month of the contract through which we hedge our position. for instance, if we use July 200 X contract to hedge our portfolio’s market risk, our hedge contract month would be July 200 X contract. Similarly, if we hedge say risk on crude oil price with the help of September 200 Y, hedge contract month would be September 200 Y .                                                                                                                                     -BY                                                                                                                  A GOWRISH R BHAT

 



Click here to read- DERIVATIVE SEGMENT- 9



Click here to read - DERIVATIVE SEGMENT – 7

15/07/2024 /1 Comment/by