Stock Market Commentary

Equity bench1Aamark indices open on flat note tracking Asian market before expiry day and continue its sideways movement throughout the day as November contracts expiry due on Thursday also caused volatility in the market. Nifty future close at a discount of 7 points at 10354.15 with a loss of 23.40 and Nifty spot close at 10361.30 with a loss of 8.95 and also bank nifty future close at a discount of 6.70 points. The Equity benchmark index attempted to give upward movement, although the index traded above their respected day high, the bulls clearly failed to push the prices higher as the index heavyweights were not participating in the up move.

As we said Nifty future is moving in particular channel, sideways movement is expected before expiry day. After 2 months of relative peace, North Korea launched its most powerful weapon on early Wednesday, which is the biggest concern right now for the market.

Looses were seen in PSU Bank and Media sector both indices down by 0.93% and 0.41%, major gain were seen in reality sector which closes with a gain of 0.89%

Wipro, Sun Pharma, Bosch and Bharti Infratel were the top gainers, while Axis Bank, Asian Paints, and Zee Entertainment lost the most.

North Korea weapon lounged is the biggest concern for the market as investor and big institution will want to close their long position in the market and this will add selling pressure. Since, we are now approaching current month expiry, we expect volatility to pick up and hence, one needs to be very selective while entering into a trade and we would like to advise investors and traders to avoid carry your long position till global tension remains.

If we closely observe today Nifty future price action, Nifty future tried to hold 10400 mark but turned unsuccessful and now is near channel support level 10330 and breakdown of which will result in directional movement and if it doesn’t break down its channel support level we can see recovery in equity indices. 

RESISTANCE & SUPPORT LEVELS -:

Support of Nifty future is placed at 10330 and 10265.

Resistance of Nifty future is placed at 10440 and 10530.

Support of Bank Nifty future is placed at 25700 and 25550.

Resistance of Bank Nifty future is placed at 26010 and 26140.

For more information visit our site www.marketmagnify.com  or missed call 7879881122.

GROWTH AND SCOPE OF GEMS AND JEWELLERY INDUSTRY IN INDIA

INTRODUCTION OF GEMS AND JEWELLERY SECTOR-

  • India’s gems and jewellery sector has been contributing around 13-15 per cent over past five years to India’s total exports and employs over 4.64 million employees.
  • India is the largest manufacturer of cut and polished diamonds in the world and exports 93 per cent of its production.
  • India is one of the largest exporters of gems and jewellery and the industry is considered to play a vital role in the Indian economy and also major contributor to the total foreign reserves of the country
  • India exports 75 per cent of the world’s polished diamonds.
  • Today, 12 out of 14 diamonds sold in the world are either polished or cut in India
  • India’s gems and jewellery sector is one of the largest in the world contributing 29 per cent to the global jewellery consumption
  • The overall net exports of gems and jewellery stood at US$ 35.59 billion during FY2016-17 registering a growth of 9.07 per cent over FY 2015-16.
  • India’s gems and jewellery imports increased at a compound annual growth rate (CAGR) of 7.84%
  • The Government of India has permitted 100 per cent FDI under the automatic route in this sector.
  • US, Hong Kong and UAE imported 75 per cent of the total gems and jewellery exports from India during FY 2016-17.
  • India’s exports 93 per cent of its cut and polished diamonds produced.

INDUSTRY GROWTH & EXPECTATION

  • Companies are indulging in expansion to more and more cities as well as expanding across the value chain.
  • Retailers in India have started selling their jewellery online. The growth of online jewellery is driven by increasing internet penetration rates, growth in high net worth individuals’ population and availability of low online jewellery prices.
  • Majority of the players in the Indian market have started selling jewellery online; for example Malabar Gold, Tanishq, Tribhovandas Bhimji Zaveri, PC Jeweller, etc
  • Companies are also giving buy back option to customers on jewellery within certain days after the purchase and based on certain terms and conditions.
  • Companies have also started providing financial facility to their customers who cannot afford to pay the whole amount at once.
  • The increasing middle class population symbolises an increase in income of the population; and income is a major driver of demand for gold and jewellery in India.
  • As income rises, so does savings and Indians prefer buying gold with their savings as they consider gold as an important form of investment.
  • In 2016, India’s gold demand stood at 666.1 tonnes; and 298.4 tonnes between January-June 2017.

MARKET KEY PLAYERS

jewllwers

MAJOR INVESTMENTS AND DEVELOPMENTS

  • Cumulative Foreign Direct Investment (FDI) in diamond and gold ornaments in India FY08-17 rose at a compound annual growth rate (CAGR) of 21.43 per cent.
  • Cumulative FDI between April 2000-June 2017 in the sector rose from US$ 167.54 million as of March 2008 to 961.62 million as of June 2017.
  • The International Institute of Diamond Grading and Research (IIDGR) have invested US$ 5 million for expanding its synthetic diamond testing facility in Surat.
  • The Indian Commodity Exchange (ICEX), backed by the Anil Ambani Group has launched the first ever futures contract for diamonds in the world, to create many new opportunities for diamond players.
  • Jewelers companies have been consciously altering their product offerings in favor of high-margin studded and wedding jewellery variants.
  • The removal of gem and jewellery from the ambit of the Prevention of Money Laundering Act has come as a big relief for the sector which is reeling under the twin impact of demonetisation and GST. Following the move, jewellers need not verify the identity of their clients by a KYC process for every transaction of 50,000 or more made through a single or multiple transactions.

GOVERNMENT INITIATIVES

  • A jewellery park worth Rs 50 crore (US$ 7.8 million) is to be set up in Mumbai by the Government of India where local handmade workers and factories will be relocated to develop their trade, improve their work environment and standard of living.
  • The Government of India launched the Sovereign Gold Bond Scheme. This scheme enables the Reserve Bank of India (RBI) to issue gold bonds denominated in grams of gold individuals in consultation with Ministry of Finance.
  • The Government of India has approved the setting up of four common facility centres (CFCs) in Ahmedabad, Amreli, Visanagar and Palanpur at a total cost of INR 16.15 crore (US$ 2.52 million); of which the CFCs at Palanpur and Visanagar have already been inaugurated
  • These CFCs are expected to provide access to a common pool of state-of-the-art machinery and equipment at a cheaper rate to small and medium diamond manufacturers; and it will also be used for transfer of technology and r e-skilling and training of existing artisans.
  • A total of 200 small and medium manufacturers will receive access to the CFCs.
  • Mr Arun Jaitley, Minister of Finance, Government of India, launched the Gold Monetisation Scheme in November 2015. This scheme enables individuals, trusts and mutual funds to deposit gold with banks and earn interest on the same in return.
  • The designated banks accept gold deposits under the Short Term (1-3 Years) Bank Deposit as well as Medium (5-7 years) and long (12-15 years) Term Government Deposit Schemes.

ROAD MAP AHEAD

Gems and Jewellery sector (in particular, top big companies ; as there is entry level barrier  for new companies in the sector and the trust of people they enjoy ) is full of opportunities in the coming years as demand in India for gold will never end and as middle class population income increases. As income rises, so does saving and Indians prefer to buy gold with their saving as they consider gold as an auspicious and important part of investment.

Also, during festivals like Diwali and Dhanteras as well as during weddings and other significant celebrations, people in India tend to spend a considerable amount of money in gems and jewellery especially in gold, all of which are expected to drive demand of gold in the future.

OUR RECOMMENDATION ON STOCKS

 BUY PC JEWELLER ABOVE 386 TARGET 420-460  WITH STOP LOSS OF 350.

BUY TBZ ABOVE 145 TARGET 165-190 WITH STOP LOSS OF 128.

BUY GITANJALI GEMS ABOVE 99 TARGET 115-140 WITH STOP LOSS OF 80.

BUY RAJESH EXPORTS ABOVE 770 TARGET 810-860 WITH SL 730.

 For More Share Market News & Updates Visit – www.marketmagnify.com or Miss call @7879881122.

Stock to watch for 22nd NOV

APOLLO TYRE

The stock has given trend line breakout on daily chart and also RSI has given resistance level breakout and now at 57.48. MACD has also given upward movement crossover on daily chart and histogram is also shift to positive side

We recommended traders to buy Apollo Tyre above 247 level and target of 251-255 may achieved with a stop loss of 243.

apolo tyre

FIN PIPE

Stock is reversing from its support level with formation of spinning top candlestick pattern on Monday at support level with high volume and confirmation of trend reversal has been done on Tuesday with stochastic oscillator has given upward movement crossover.

finpipe

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Market Commentary as on 21-Nov.-2017

Indian benchmark indices ended the session12mm on a positive note. Nifty future closes with gain of 31.15 points at 10351.90 and sensex closes with a gain of 118.45 points at 33478.35. After gap up opening market was in consolidation phase and after 2 pm Indian indices started falling tracking weakness in European stocks due to German political uncertainty.

 

Nifty pharma ended the session with gain of 2.22% followed by Nifty media closes with 0.87% gain and Nifty reality closes with a gain of 1.14%

DR Reddys, Sun pharma and Tech Mahindra are the top gainers today and Coal India, ITC and Ambuja Cements are the top losers.

Nifty is in sideways movement and weakness in European stocks due to political uncertainty can further drive market in downside. Although Bank Nifty has been an outperformer during last week but we have seen stock specific movement within banking stocks. Traders are advised to follow stock specific movements and for index Last Week Friday gap area is considered strong support zone in near term.

Trading strategy for Wednesday will be buy on dips as market trend may be consolidate to bullish till market breakdown the gap area.

Support Of Nifty Future is placed at 10310 and 10265.

Resistance Of Nifty Future is placed at 10390 and 10510.

Support Of Bank Nifty Future is placed at 25740 and 25550.

Resistance Of Bank Nifty Future is placed at 25940 and 26010.

For More Share Market News & Updates Click here –  www.marketmagnify.com or Give Miss call @7879881122

Stock to watch for 20th Nov

STAR

The stock has formed a wedge patter on daily chart and it is showing recovery from lower levels. MACD is showing convergence and RSI is showing buy signal so 30 levels after recovering from over sold zone.

We recommended traders to buy STAR above 793 level and target of 810-845 may be achieved with a stop loss of 768.

Star

FORTIS FUTURE

The stock future is taking support of the trend line and sustaining above 130 levels above it. RSI has shown recovery from over sold zone and now above 30 levels. So we could expect recovery in the stock prices.

We recommended traders to buy FORTIS FUTURE above 131 level and target of 133-137 may be achieved with a stop loss of 128.

FORTIS FUTURE

5 money-making ideas that can deliver big before Diwali

The bulls and the bears continued to fight hard through this past week to get a grip on the market. For the week ended September 8, 2017, NSE’s Nifty index cimages (2)losed at 9,934, down 0.40 per cent from its September 1 closing of 9,974.

Brokerage Sharekhan said the momentum indicator on the weekly chart was bearish. The Nifty50 has crucial support at 9,448 and 9,300 levels while it faces resistance at 10,350 and 10,960.

Based on various brokerage recommendations, here are 5 stock strategies that can potentially deliver solid gains over the next 7-21 sessions:

Petronet LNG |Buy | Target price: Rs 245 | Stop loss: Rs 214

After a breakout towards a new high, this stock has seen some consolidation. The long-term trend of the stock is upward and it is currently resting near its support at the 20DMA. The RSI and MACD are supporting its bullish momentum.

Hindustan Zinc | Buy | Target price: Rs 335 | Stop loss: Rs 292

This stock has been underperforming the metal pack over the past 3-4 months, but it has witnessed some momentum recently and saw a breakout. The RSI and MACD are trending strongly in the bullish zone and a new high could be a possibility before the expiry of the ongoing series of F&O contracts.

Bajaj Corporation | Buy | Target price: Rs 430 | Stop loss: Rs 375

A fresh buy signal has emerged over the Stochastic on the weekly chart, which is a very bullish indication. The daily MACD remains in continuing buy mode. The RSI has made a higher low and shows a bullish divergence against price. An upward revision in prices is likely over the next few days.

Karur Vysva Bank | Buy | Target price: Rs 165 | Stop loss: Rs 135

After rising sharply from Rs 110 to Rs 145, this stock has seen consolidation in the Rs 130-145 range. On the weekly charts, it has made bullish flag formation and seen a fresh breakout above Rs 145. Moreover, a divergence in RSI and Stochastic is indicating positive moves going forward. Traders can accumulate the stock in the Rs 145-150 range for a target of Rs 165 with a stop loss below Rs 135.

Titan | Buy | Target price: Rs 667 | Stop loss: Rs 605

After hitting a lifetime high of Rs 651 last week, this counter is in a corrective and consolidation process. “One should make use of this opportunity to create fresh long positions and prices and on declines up to Rs 618 for a target of Rs 667 with a stop loss at Rs 605,” Mohammad said.

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