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Jigar S Patel of Anand Rathi suggests buying these stocks on September 23

Jigar S Patel of Anand Rathi suggests buying these stocks on September 23

by | Sep 23, 2024 | Share Market


4 min read Last Updated : Sep 23 2024 | 6:33 AM IST


Adani Power


Recently, Adani Power broke through a key bearish trendline on the daily chart, suggesting a potential reversal in momentum from its previous downtrend. Prior to this breakout, the stock had formed a double bottom pattern, a bullish reversal structure that indicates strong support and a potential shift in price direction. 


This double bottom was accompanied by a bullish divergence in the Relative Strength Index (RSI), where the RSI moved higher while the price remained low, signalling weakening selling pressure and a possible move upward. This bullish divergence occurred near a significant demand zone and previous breakout range, which further enhances the positive sentiment surrounding the stock. 

 


These technical factors suggest that Adani Power is positioned for a strong upward move. As a result, a long position is recommended in the price range of Rs 655-675, with an upside target of Rs 755. To manage risk, a stop-loss should be placed at Rs 620, with close attention to a daily close below this level to exit the position.


SBI Card


On a weekly chart, SBI Card’s stock consolidated within a range of approximately Rs 680 to Rs 750, signalling a phase where the stock price remained confined within these levels, neither breaking down nor rallying. This period of consolidation occurred near a potential reversal zone, with the lower boundary of the consolidation being around Rs 680. Such zones often indicate that the stock is nearing a point where its trend may shift, either resuming an uptrend or reversing from a prior decline. 


During this consolidation, SBI Card formed a triple bottom pattern, a bullish reversal structure that indicates strong support at the lower end of the range. This pattern, coupled with bullish divergence on the daily Relative Strength Index (RSI), further reinforced the likelihood of an upward move. Bullish divergence on the RSI indicates that while the stock’s price may have been declining or remaining flat, momentum was building in the opposite direction, suggesting growing buying pressure.


Following this consolidation, SBI Card successfully broke out of the Rs 750 zone and has sustained above it, confirming the strength of the breakout. The stock is now positioned for further upward movement, with a target price of Rs 900. Investors are advised to take a “buy on dip” approach, entering the stock at levels till  Rs 765 for potential upside gains. To manage risk, a stop-loss should be set at Rs 725 on a daily closing basis, ensuring downside protection in case the stock fails to maintain its momentum. This technical setup, backed by the triple bottom pattern, RSI divergence, and the breakout, makes SBI Car a favourable long position for traders and investors.


Siemens




Over the past five trading sessions, Siemens has been consolidating within a narrow range of 6,600 to 6,800, with the stock price hovering near its 100-day exponential moving average (DEMA). This prolonged period of price consolidation indicates a potential base formation, where the stock is stabilising before making a decisive move. The fact that this consolidation is occurring just above its bear trendline (as indicated on the chart) strengthens the likelihood that Siemens is building a strong support base, signalling that selling pressure might be waning.


In the most recent trading session, a notable technical development occurred: the Relative Strength Index (RSI) on the daily chart broke above its previous bear trendline. This breakout in the RSI is a clear indicator of improving momentum, suggesting that buyers are gaining strength and positive momentum is building in the stock. Based on these factors, a long position in Siemens is recommended, with an entry point around 6,800. The price target for this trade is 7,250, offering a strong potential upside. To manage risk, a stop-loss should be placed at 6,575 on a daily close basis.


(Disclaimer: Jigar S Patel is a senior manager of equity research at Anand Rathi. Views expressed are his own.)

First Published: Sep 23 2024 | 6:33 AM IST



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Complaint against Sebi chief falls short of persuading us to probe: Lokpal

Complaint against Sebi chief falls short of persuading us to probe: Lokpal

by | Sep 22, 2024 | Share Market


The allegations were denied by the duo, who said the short-seller was attacking the capital markets regulator’s credibility and attempting a character assassination | (Photo: PTI)

5 min read Last Updated : Sep 22 2024 | 2:22 PM IST


Anti-corruption ombudsman Lokpal has said that a complaint by a Lok Sabha MP alleging impropriety and conflict of interest by capital markets regulator Sebi’s chairperson, Madhabi Puri Buch “falls short” of persuading it to order any probe.

While deciding on two complaints filed by different individuals on the basis of a report by US-based “activist short-seller” Hindenburg Research, it asked the complainants to file affidavits mentioning details of the efforts made by them “to verify the authenticity and credibility of the claims in the recent report of Hindenburg Research published on 10.08.2024.”

It also asked them to articulate the allegations against the “person concerned” which may constitute an “offence of corruption” within the ambit of the Prevention of Corruption Act, 1988, ‘provision wise’, as per the Lokpal’s order dated September 20, which was put up in public domain “to obviate the possibility of speculation and misinformation including politicisation of the matter”.

 


Hindenburg Research had in its report alleged that Buch and her husband had stakes in obscure offshore funds used in the alleged Adani money siphoning scandal.


The allegations were denied by the duo, who said the short-seller was attacking the capital markets regulator’s credibility and attempting a character assassination. Adani Group had also termed Hindenburg Research’s allegations as malicious and manipulation of select public information.

Hindenburg had said 18 months since its damning report on Adani, “Sebi has shown a surprising lack of interest in Adani’s alleged undisclosed web of Mauritius and offshore shell entities.”

Obscure offshore Bermuda and Mauritius funds, allegedly controlled by Vinod Adani — elder brother of the group’s chairman Gautam Adani — are alleged to have been used to round-trip funds and inflate stock price.

Dealing with the complaint “filed by a sitting Member of Parliament (Lok Sabha)”, the Lokpal said “it falls short of persuading us to take a firm view that there exists a prima facie case as per Section 20 of the (Lokpal) Act of 2013 to proceed in the matter including to direct a preliminary inquiry or investigation, for the same reasons and logic spelt out (in the first complaint) hitherto.”

In a post on X, Trinamool Congress MP Mahua Moitra had on September 13 said she had filed a complaint against Sebi chief with the Lokpal and said the anti-graft ombudsman should forward it to the Enforcement Directorate (ED) or the Central Bureau of Investigation (CBI) for preliminary probe followed by a “full FIR enquiry”.

Without mentioning the name of the complainant, the Lokpal in its order said the communication filed in its office is dated September 11, 2024, whose entire copy “was contemporaneously placed in public domain (in media) despite the mandate of Rule 4 of the Lokpal (Complaint) Rules, 2020-guaranteeing protection of identity not only to the complainant but also to the public servant complained against till the conclusion of the inquiry or investigation.”

It said the first complainant (name not mentioned in the Lokpal’s order) drafted his complaint on July 13, 2024 (as is evident from the date noted at the end of the communication registered as the complaint), but may have improvised it on the basis of the recent report (published later) by Hindenburg Research dated August 30, 2024, which he downloaded from the internet on August 13.


“…and on the same day (August 13, 2024), forwarded his complaint online to the Lokpal on its official email. Be that as it may, the complainant claims to have come across the recent report of Hindenburg Research after its publication on August 10, 2024. From the chronology noted above, we have reason to believe that the complainant, without verifying the contents of the stated report and collating credible material, has rushed in his complaint on the same day online,” the order said.


The Lokpal asked both the complainants to “articulate the allegations against concerned person which may constitute an ‘offence of corruption’ within the meaning of the Prevention of Corruption Act, 1988, ‘provision wise'” in an affidavit.


It asked the complainants to file the affidavit explicating the foundational or jurisdictional facts on ten broad points.


The Lokpal sought details “regarding the efforts made by the respective complainant to verify the authenticity and credibility of the claims in the recent report of Hindenburg Research published on August 10, 2024”.


“We make it clear that the observations made hitherto in the concerned complaint and/or in the totality, may not be construed as an expression of opinion by the Lokpal one way or the other.


“This direction is only a procedural order, issued for testing the question of tenability of the concerned complaint and to record a prima facie view as required under Section 20 of the Act of 2013, in the peculiar fact situation,” reads the order issued by Lokpal chairperson Justice A M Khanwilkar and three other members — Justices L Narayana Swamy, Ritu Raj Awasthi, and Sushil Chandra.


The Lokpal listed these cases on October 17, 2024 “for further consideration”.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sep 22 2024 | 2:22 PM IST



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Ex Sebi chief to head panel on ending monopolies in gas transmission

Ex Sebi chief to head panel on ending monopolies in gas transmission

by | Sep 22, 2024 | Share Market


In its September 10 order, the regulator said the PNGRB Act of 2006 mandates it to ensure separation of activities related to natural gas marketing and transportation including ownership of the pipeline in case an entity engages in both marketing of natural gas and laying and operating pipelines.

4 min read Last Updated : Sep 22 2024 | 1:44 PM IST


Oil regulator has formed a committee under former Sebi chairman Ajay Tyagi to recommend ways of ending monopolies enjoyed by companies engaged in both transportation and marketing of natural gas and city gas retailing.


The eight-member committee has been asked to give its recommendations on splitting entities engaged in both transportation and marketing of natural gas, and ending the monopolies of city gas retailers where required, the Petroleum and Natural Gas Regulatory Board (PNGRB) said in an order.


The panel has been asked to submit its report in three months.


In mature markets, energy infrastructure is operated on a common carrier principle that gives access to third parties. Any user or supplier could access any gas pipeline, irrespective of who owns it. But that is not the case in India with users and suppliers often complaining of not getting access.

 


The government had a few years back considered splitting state-owned gas utility GAIL (India) Ltd by hiving off its pipeline business into a separate entity and selling it off to strategic investors. This is because GAIL owns more than two-thirds of the country’s pipeline networking, getting it a stranglehold on the market. GAIL is also the country’s biggest natural gas marketing firm and users often complained about not getting access to the company’s pipeline network to transport their own fuel.


To resolve the conflict arising out of the same entity owing the two jobs of transportation as well as marketing of gas, bifurcating GAIL was considered. But that plan was dropped without any explanation.


Parallely, city gas operators have monopolies in supply of CNG to automobiles and piped natural gas to household kitchens for cooking in several cities. Third parties do not have access to their network of pipelines if they wish to supply the fuel.


Now PNGRB has constituted the committee to promote competition and provide a level-playing field in gas transmission and distribution businesses.


In its September 10 order, the regulator said the PNGRB Act of 2006 mandates it to ensure separation of activities related to natural gas marketing and transportation including ownership of the pipeline in case an entity engages in both marketing of natural gas and laying and operating pipelines.

PNGRB said its regulations state that “if an entity is engaged in both marketing of natural gas and laying, building, operating or expanding pipelines for transportation of natural gas, it shall, on or before March 31, 2017, create a separate legal entity so that the activity of transportation of natural gas is carried on by such separate legal entity and the right of first use shall be available to the affiliate of such separate legal entity.”

However, this objective has not been achieved, it said.


In addition, ending the exclusivity of city gas licences was important for opening up the gas market but the regulator faced hurdles to declare a licence area as common carrier upon expiration of given exclusivity.


“The declaration of geographical areas as common carrier or contract carrier is essential for ushering in fair competition and efficiency in the city gas distribution sector, which may benefit the end consumer,” PNGRB said.


PNGRB said it is constituting an expert committee under Tyagi, who had previously dealt with gas issues when he worked as a senior bucrearact in the Ministry of Petroleum and Natural Gas.


The other members of the committee include A K Purwaha, former chairman of Engineers India Ltd, Shaleen Sharma, former head of BG India, and Sanjay Sah of Deloitte.


“The primary objective of the committee is to analyse global practices concerning the separation of transportation and marketing activities including ownership of the pipeline in the natural gas sector, assess the current situation in India, and recommend suitable measures to ensure effective implementation of separation of transportation and marketing activities in the natural gas sector,” it said.

The panel has been asked to provide a “possible model for separation of transportation and marketing activities in the natural gas sector including ownership of the pipeline.”

It would also “provide actionable recommendations for revising the exclusivity framework in the city gas distribution (CGD) sector” and “suggest measures to address legal challenges and ensure a fair and competitive market”.


The committee would also suggest “pathways for geographical areas where exclusivity for laying, building or expansion of the CGD network has ended”.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sep 22 2024 | 1:44 PM IST



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FPIs pump Rs 33,700 cr in Indian equities in Sept amid US rate cut

FPIs pump Rs 33,700 cr in Indian equities in Sept amid US rate cut

by | Sep 22, 2024 | Share Market


FPIs investment in equities reached Rs 76,572 crore so far this year. | Representative Picture

3 min read Last Updated : Sep 22 2024 | 11:05 AM IST


Foreign investors have injected close to Rs 33,700 crore in domestic equities in this month so far primarily due to interest rate cut in the US and resilience of the Indian market.


This also marks the second highest inflow in a month in this year so far, the last one being in March, when Foreign Portfolio Investors (FPIs) infused Rs 35,100 crore, data with the depositories showed.


Going ahead, the trend of FPIs buying is likely to continue in the coming days, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

 


According to the data with the depositories, Foreign Portfolio Investors put in a net investment of Rs 33,691 crore into equities this month (till September 20).


With this, FPIs investment in equities reached Rs 76,572 crore so far this year. Since June, FPIs have been consistently buying equities. Before that, they pulled out funds to the tune of Rs 34,252 crore in April-May.


In September, FPIs remained bullish, purchasing Indian equities on expectations of a US Federal Reserve rate cut and a rate cut on September 18 further fuelled their aggressive buying behaviour.


“The trigger for the aggressive buying by FPIs was the 50 basis points rate cut by the US Federal Reserve on September 18, which is regarded as a big Fed pivot, marking the beginning of a rate cutting cycle. The Fed rate is expected to decline steadily to 3.4 per cent by end 2025. Bond yields in the US are steadily declining, nudging the FPIs to invest in emerging markets like India,” Vijayakumar said.


For global markets, the weakening US dollar and dovish Fed stance make Indian equities increasingly appealing. The rupee’s strengthening reflects confidence in India’s stability, although it could challenge the export sector, Robin Arya, smallcase Manager, and Founder & CEO at research analyst firm GoalFi, said.


Additionally, balanced fiscal deficits, rate cut impacts on the Indian currency, strong valuations, and RBI’s approach to keep inflation under control without a rate cut are the primary factors for making emerging markets like India a sweet spot, Manoj Purohit, Partner and leader, FS Tax, Tax and Regulatory Services, BDO India, said.


To add, the IPOs announced this year attracted a large chunk of foreign funds making the Indian capital market buoyant and a lucrative place to shift their positions from other riskier countries, he added.


The flood of FPI money has appreciated the Indian Rupee (INR) by 0.4 per cent for the week ended September 20, This can boost further buying.


However, the concern is the market getting overheated and valuations getting stretched.


Apart from equities, FPIs infused Rs 7,361 crore into debt through the Voluntary Retention Route (VRR) and Rs 19,601 crore via the Fully Accessible Route (FRR). The VRR encourages long-term investment while the FRR enhances liquidity and access for foreign investors.


These inflows into both equities and debt highlight the potential for renewed FPI engagement, but ongoing global volatility and recession fears reminds the delicate balance ahead. The actions of the RBI will be crucial in this evolving landscape, GoalFi’s Arya said.


Market experts are closely monitoring the RBI to determine if it will align with the US Fed by cutting the repo rate in October or delaying the decision until December.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sep 22 2024 | 11:05 AM IST



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Mcap of 6 of top-10 most valued firms jumps Rs 1.9 trn; Infosys tumbles

Mcap of 6 of top-10 most valued firms jumps Rs 1.9 trn; Infosys tumbles

by | Sep 22, 2024 | Share Market


Last week, the BSE benchmark jumped 1,653.37 points or 1.99 per cent. | Representational

2 min read Last Updated : Sep 22 2024 | 11:00 AM IST


The combined market valuation of 6 of the top-10 most valued firms jumped Rs 1,97,734.77 crore last week, with ICICI Bank and HDFC Bank emerging as the biggest winners, in-line with optimistic trends in equities.


Last week, the BSE benchmark jumped 1,653.37 points or 1.99 per cent.


The BSE benchmark soared 1,359.51 points or 1.63 per cent to settle at an all-time high of 84,544.31 on Friday. During the day, it jumped 1,509.66 points or 1.81 per cent to hit the lifetime intra-day peak of 84,694.46.


The valuation of ICICI Bank surged Rs 63,359.79 crore to Rs 9,44,226.88 crore, the most among the top-10 firms.

 


HDFC Bank added Rs 58,569.52 crore taking its market valuation to Rs 13,28,605.29 crore.


Bharti Airtel’s valuation soared Rs 44,319.91 crore to Rs 9,74,810.11 crore.


The market capitalisation (mcap) of Reliance Industries climbed Rs 19,384.07 crore to Rs 20,11,544.68 crore.


Hindustan Unilever’s valuation gained Rs 10,725.88 crore to Rs 7,00,084.21 crore and that of ITC went up by Rs 1,375.6 crore to Rs 6,43,907.42 crore.


However, the mcap of Tata Consultancy Services (TCS) slumped Rs 85,730.59 crore to Rs 15,50,459.04 crore.


The valuation of Infosys tumbled Rs 15,861.16 crore to Rs 7,91,438.39 crore.


The mcap of Life Insurance Corporation of India (LIC) tanked Rs 14,832.12 crore to Rs 6,39,172.64 crore and that of State Bank of India declined by Rs 7,719.79 crore to Rs 6,97,815.41 crore.


Reliance Industries remained the most valued firm, followed by TCS, HDFC Bank, Bharti Airtel, ICICI Bank, Infosys, Hindustan Unilever, State Bank of India, ITC and LIC.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sep 22 2024 | 11:00 AM IST



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Global trends, foreign investors key drivers for markets this week: Experts

Global trends, foreign investors key drivers for markets this week: Experts

by | Sep 22, 2024 | Share Market


The highlight of the week was the aggressive buying by Foreign Institutional Investors. | Representational

3 min read Last Updated : Sep 22 2024 | 10:53 AM IST


Investors will keep a track on global trends and trading activity of foreign investors with no major domestic trigger in sight this week, analysts said, and added that markets may face volatility amid the monthly derivatives expiry.


Stock markets had a record-breaking rally last week, largely driven by the US Federal Reserve’s rate cut.


Historically, rate cuts in the US have had a positive impact on emerging markets, with India being a favoured bet among global investors, Santosh Meena, Head of Research, Swastika Investmart Ltd, said.


The highlight of the week was the aggressive buying by Foreign Institutional Investors (FIIs), who poured in over Rs 14,000 crore on Friday alone, he added.

 


“There are no major triggers expected this week, but upcoming macroeconomic data from the US will be crucial to monitor. FII flows will remain a key factor for the Indian equity market, alongside domestic institutional inflows, which will also play an important role.


“While markets currently seem unfazed by geopolitical risks, these factors could pose a significant threat to the ongoing bullish momentum. As we approach the September F&O expiry, heightened volatility is likely,” Meena said.


The 30-share BSE Sensex jumped 1,359.51 points or 1.63 per cent to settle at an all-time high of 84,544.31 on Friday. During the day, it soared 1,509.66 points or 1.81 per cent to hit the momentous intra-day peak of 84,694.46.


The NSE Nifty surged 375.15 points or 1.48 per cent to close at a record 25,790.95 level. During the day, the gauge zoomed 433.45 points or 1.70 per cent to reach an all-time intra-day peak of 25,849.25.


Last week, the BSE benchmark jumped 1,653.37 points or 1.99 per cent and Nifty surged 434.45 points or 1.71 per cent.

Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, “Markets are gradually climbing up and we expect this positive momentum to continue this week backed by strong FII inflow, healthy domestic macros, and receding concern about the US economy slowing down.”

Movement of rupee against the US dollar and global oil benchmark Brent crude will also influence trading in the markets.


“Although the major event of the Fed’s rate cut is behind us, attention will remain on the US markets for further direction. Additionally, trends in foreign fund flows and crude oil price movements will be critical factors for investors to monitor, as they may impact market direction in the coming weeks,” Ajit Mishra SVP, Research, Religare Broking Ltd, said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sep 22 2024 | 10:53 AM IST



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