Extreme volatility persisted on the D – Street since the benchmark indices remained directionless throughout the session to close flat. The index Nifty started the session with an upside gap and gained momentum during the first half. However, selling pressure in the second half forced the index to close again below 11600 mark with marginal loss. Meanwhile, the Nifty Bank index continues to remain under pressure and ended with a loss of more than 200 points.
As the day progressed, market breadth turned in the favour of declining counters which indicates broad based selling. On the sectoral front, defensives like NIFTY PHARMA (+1.11%) and NIFTY FMCG (+0.25%) counters supported the markets. On the other hand, NIFTY AUTO (-1.49%) and NIFTY BANK (-0.70%) stocks remained under pressure. From the F&O space, INFIBEAM (-8.18%), RPOWER (-3.77%) and IDFC (-3.35%) were the biggest losers.
MARKET OUTLOOK
NIFTY DAILY CHART:
Yesterday, the index Nifty remained under pressure despite the massive fall of Monday. Although there was an attempt of a relief rally but it closed near day’s low. Even at this juncture, the index is trading just above the previous decisive support level of 11550. Thus we maintain our stance that, if this support is held then we might witness a relief rally going ahead.
In such scenario, 11650 – 11730 would act as strong resistance in the coming sessions. In case of further downside, breach of 11550 on closing basis might bring the markets into the ‘Sell on Rise’ mode. We continue to advice traders to avoid overleveraged positions and maintain strict stop loss.
Posted by Mehul Kothari | Published on 23-APR-2019
ISSUE HIGHLIGHTS
Issue Size of approximately 61,55,814 shares which consists of offer for sale of 29,00,000 shares by promoter & promoter group and fresh issue of approximately 32,55,814 shares (at upper price band).
Proceeds from the issue shall be utilised towards : A) Repayment of borrowing – 20.5 Cr. B) Early redemption of 9.8% FRCPS – 11.5 Cr C) Long term working capital – 20 Cr.
Shareholding Pattern
COMPANY HIGHLIGHTS
Neogen Chemicals Ltd is a 27 year old company specialising in Bromine based compounds and Inorganic Lithium Salts.
The company was founded by Mr H T Kanani, a chemical engineer from IIT Mumbai.
Over the years Neogen have expanded its product portfolio and presently manufactures extensive range of specialty chemicals having application in various industries. As on September 30, 2018, Neogen have manufactured an aggregate of 187 products comprising 170 organic chemicals and 17 inorganic chemicals.
Specialty organic chemical compounds find use in application industries such as pharmaceutical, agrochemical, flavour, fragrance and electronic-chemical.
Neogen’s product offering in inorganic chemical segment primarily comprises Lithium Compounds. The Lithium Compounds manufactured are used in eco-friendly Vapour Absorption Machines (VAM) for cooling air/water/process equipment and find application in industries such as heating ventilation, air-conditioning (HVAC), refrigeration, construction chemicals, pharmaceutical and specialty polymer.
Neogen is presently, developing a green-field manufacturing unit in Dahej SEZ, in Gujarat and are also proposing to expand operations in Karakhadi, Vadodara.
Peer Comparison (FY 18) Rs. in Cr.
Manufacturing Facilities and Capacity Utilisation
Valuation
Company’s operations are relatively on a much smaller scale in comparison to its listed players. Having regard to the issue size and its scale of operations, we would like to see FY20 earnings trajectory and growth prospects of Neogen for recommendation.
Disclaimer: This document has been prepared by IndiaNivesh Securities Limited (“INSL”), for use by the recipient as information only and is not for circulation or public distribution. INSL includes subsidiaries, group and associate companies, promoters, employees and affiliates. INSL researches, aggregates and faithfully reproduces information available in public domain and other sources, considered to be reliable and makes them available for the recipient, though its accuracy or completeness has not been verified by INSL independently and cannot be guaranteed. The third party research material included in this document does not represent the views of INSL and/or its officers, employees and the recipient must exercise independent judgement with regard to such content. This document has been published in accordance with the provisions of Regulation 18 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is not to be altered, transmitted, reproduced, copied, redistributed, uploaded or published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from INSL. This document is solely for information purpose and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. INSL does not take responsibility thereof. The research analysts of INSL have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is based on technical and derivative analysis center on studying charts of a stock’s price movement, outstanding positions and trading volume, as opposed to focusing on a company’s fundamentals and, as such, may not match with a report on a company’s fundamentals. Nothing in this document constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances. INSL does not accept any responsibility or whatever nature for the information, assurances, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this document only. The opinions are subject to change without any notice. INSL directors/employees and its clients may have holdings in the stocks mentioned in the document.
This report is based / focused on fundamentals of the Company and forward-looking statements as such, may not match with a report on a company’s technical analysis reportEach of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report: Dharmesh KantFollowing table contains the disclosure of interest in order to adhere to utmost transparency in the matter:
INSL, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. INSL reserves the right to make modifications and alternations to this statement, as may be required, from time to time. Research Analyst has not served as an officer, director or employee of Subject Company One year Price history of the daily closing price of the securities covered in this note is available at www.nseindia.com and www.economictimes.indiatimes.com/markets/stocks/stock-quotes. (Choose name of company in the list browse companies and select 1 year in icon YTD in the price chart))
Posted by Mehul Kothari | Published on 24-APR-2019
BULLION Gold and silver prices slides to 4-months low on strong dollar. Trend volatile Review Yesterday, both the precious metals were trades weak in international markets. Gold settled at $1273.20 per troy ounce down by 0.34% while silver settled at $14.79 per troy ounce down by 1.20%. Domestic markets were also settled weak. Gold settled at Rs.31562 per 10 gram with the loss of 0.11% and MCX Silver settled at 36976 per 1 kilogram with the loss of 1.08%. Gold and silver prices slides to 4months low in yesterday are trading session. Strong rally in Dollar index and U.S. equity markets puts pressure on precious metal prices. U.S. equity index are near record high is main element to pushes precious metals down. Strong dollar, positive U.S. equities and positive Chinese data is negative for bullion prices. We expect Gold will test its key support level of $1260. Gold is having support at $1266-1260 and resistance at $1278-1284. Silver is having support at $14.64-14.50 while resistance at $14.94-15.10. TECHNICAL OUTLOOK
Today, Gold is having support at 31461-31360 while resistance at 31651-31741, silver is having support at 36719-36462 and resistance at 37344-37712. Traders are suggested to trade in a range with strict stop loss.
ENERGY Crude oil prices extend rally after U.S. sanctions on Iran. Trend firm. Review Yesterday, Crude oil prices trade positive in international market WTI Crude settled at $66.30 while Brent settled at $74.46 per barrel. At MCX Crude oil settled positive at 4641 per barrel with the gain of 1.05%. Crude oil prices extend rally and hover to 2019 high after Washington abruptly moved to end all Iran sanctions waivers by May, pressuring importers to stop buying from Tehran. Now that Trump has put into action his plan to bring Iranian oil exports to zero, he expects OPEC+ members, which include Russia, to quickly reverse their production cuts, as well as replace lost barrels from Iran and other sources such as Venezuela and Libya. Saudi Energy Minister Khalid al-Falih said on Monday the kingdom will work to ensure the availability of oil supplies and the lack of market imbalance following the end of the U.S. sanction waivers on Iran. Market will take direction from today’s U.S. weekly inventory data. We expect crude oil to test resistance level of $67.50. Crude oil is having support at $65.80-65.20 and resistance at $67-67.50. TECHNICAL OUTLOOK
Crude oil is having support at 4599-4556 while resistance at 4675-4708, trades are suggested to trade in a range with strict stop loss.
BASE METALBase metals dip on improving supply and strong dollar. Trend volatile. ReviewYesterday, base metal prices settled weak in international market. 3M LME copper flat at $6424 per metric ton down by 0.60% from previous close. Base metal prices shows weakness as market is well supplied and strength in dollar index. Nickel prices hit a two-month low on Tuesday on signs of rising supply while the wider market also fell on a stronger dollar and uncertainty about the Chinese economy. Data showed the deficit in the global nickel market for the first two months of the year narrowed sharply to 5,700 tons, down from 24,400 tons in the same period last year. Zinc inventory is also rising in LME warehouse and which is also in pressure from last two-three trading sessions. We expect base metal prices remain volatile and strong dollar will be main villain for base metals. Today, Copper is having support around 444-441 while resistance at 449-452. Nickel will trade in a range of 848-888, Zinc will trade in a range of 221-226, and Lead will trade in a range of 131-136 while Aluminium trade in a range of 149-154.TECHNICAL OUTLOOK
Copper is having support at 444 and 441 while resistance at 449 and 452, traders are suggested to trade as per levels with strict stop loss.
AGRI COMMODITYWeak rupee and govt. procurement give breathe to agriculture commodities. Trend volatile. ReviewYesterday, Soybean settled positive in domestic markets at 3724 per quintal with the gain of 0.30%. CBOT were settled at 862. Weakness in rupee and government procurement in Chana and Mustard give breathe to agriculture commodities. Yesterday almost all counters settled in green but strong dollar and weakness at CBOT and Bursa Malaysia will puts pressure on oil complex. Other commodities at NCDEX settled positive, Chana settled with the gain of 0.34%, Castor seed settled positive with the gain of 0.04%. RM Seed closed positive with the gain of 0.64%. Guar Seed settled negative with the loss of 0.14% while Guar Gum settled with the loss of 0.02%. Spices pack settled positive Coriander, Jeera and Turmeric settled with gain. Cotton seed oilcake closed positive with the gain of 0.69%. Refined Soyoil closed positive with the gain of 0.24%. We expect Refined Soyoil to trade in a range of 730-747. TECHNICAL OUTLOOK
Soybean is having support around 3690-3660 while resistance at 3750-3780, Refined Soyaoil is having support at 734-730 while resistance at 744-747 traders are suggested to trade as per levels with strict stop loss.
News Source: Bloomberg, investing.com, kitco.com and ticker news.Disclaimer: This document is not to be construed as an offer to sell or the solicitation of an offer to buy any commodity. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this material only. IndiaNivesh directors and its clients may have holdings in the commodity and currencies mentioned in the report.)
Share Market Today - 24th April 2019
MARKET RECAP
Key Market Data Points
Extreme volatility persisted on the D – Street since the benchmark indices remained directionless throughout the session to close flat. The index Nifty started the session with an upside gap and gained momentum during the first half. However, selling pressure in the second half forced the index to close again below 11600 mark with marginal loss. Meanwhile, the Nifty Bank index continues to remain under pressure and ended with a loss of more than 200 points.
As the day progressed, market breadth turned in the favour of declining counters which indicates broad based selling. On the sectoral front, defensives like NIFTY PHARMA (+1.11%) and NIFTY FMCG (+0.25%) counters supported the markets. On the other hand, NIFTY AUTO (-1.49%) and NIFTY BANK (-0.70%) stocks remained under pressure. From the F&O space, INFIBEAM (-8.18%), RPOWER (-3.77%) and IDFC (-3.35%) were the biggest losers.
MARKET OUTLOOK
NIFTY DAILY CHART:
Yesterday, the index Nifty remained under pressure despite the massive fall of Monday. Although there was an attempt of a relief rally but it closed near day’s low. Even at this juncture, the index is trading just above the previous decisive support level of 11550. Thus we maintain our stance that, if this support is held then we might witness a relief rally going ahead.
In such scenario, 11650 – 11730 would act as strong resistance in the coming sessions. In case of further downside, breach of 11550 on closing basis might bring the markets into the ‘Sell on Rise’ mode. We continue to advice traders to avoid overleveraged positions and maintain strict stop loss.
Disclaimer
Previous Story
Neogen Chemicals Limited IPO 2019
ISSUE HIGHLIGHTS Issue Size of approximately 61,55,814 shares which consists of offer for sale of 29,00,000 shares by promoter & promoter group and fresh issue of approximately 32,55,814 shares (at upper price band). Proceeds from the issue shall be utilised towards : A) Repayment of borrowing – 20.5 Cr. B) Early redemption of 9.8% FRCPS – 11.5 Cr C) Long term working capital – 20 Cr. Shareholding Pattern COMPANY HIGHLIGHTS Neogen Chemicals Ltd is a 27 year old company specialising in Bromine based compounds and Inorganic Lithium Salts. The company was founded by Mr H T Kanani, a chemical engineer from IIT Mumbai. Over the years Neogen have expanded its product portfolio and presently manufactures extensive range of specialty chemicals having application in various industries. As on September 30, 2018, Neogen have manufactured an aggregate of 187 products comprising 170 organic chemicals and 17 inorganic chemicals. Specialty organic chemical compounds find use in application industries such as pharmaceutical, agrochemical, flavour, fragrance and electronic-chemical. Neogen’s product offering in inorganic chemical segment primarily comprises Lithium Compounds. The Lithium Compounds manufactured are used in eco-friendly Vapour Absorption Machines (VAM) for cooling air/water/process equipment and find application in industries such as heating ventilation, air-conditioning (HVAC), refrigeration, construction chemicals, pharmaceutical and specialty polymer. Neogen is presently, developing a green-field manufacturing unit in Dahej SEZ, in Gujarat and are also proposing to expand operations in Karakhadi, Vadodara. Peer Comparison (FY 18) Rs. in Cr. Manufacturing Facilities and Capacity Utilisation Valuation Company’s operations are relatively on a much smaller scale in comparison to its listed players. Having regard to the issue size and its scale of operations, we would like to see FY20 earnings trajectory and growth prospects of Neogen for recommendation. Disclaimer: This document has been prepared by IndiaNivesh Securities Limited (“INSL”), for use by the recipient as information only and is not for circulation or public distribution. INSL includes subsidiaries, group and associate companies, promoters, employees and affiliates. INSL researches, aggregates and faithfully reproduces information available in public domain and other sources, considered to be reliable and makes them available for the recipient, though its accuracy or completeness has not been verified by INSL independently and cannot be guaranteed. The third party research material included in this document does not represent the views of INSL and/or its officers, employees and the recipient must exercise independent judgement with regard to such content. This document has been published in accordance with the provisions of Regulation 18 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is not to be altered, transmitted, reproduced, copied, redistributed, uploaded or published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from INSL. This document is solely for information purpose and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. INSL does not take responsibility thereof. The research analysts of INSL have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is based on technical and derivative analysis center on studying charts of a stock’s price movement, outstanding positions and trading volume, as opposed to focusing on a company’s fundamentals and, as such, may not match with a report on a company’s fundamentals. Nothing in this document constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances. INSL does not accept any responsibility or whatever nature for the information, assurances, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this document only. The opinions are subject to change without any notice. INSL directors/employees and its clients may have holdings in the stocks mentioned in the document. This report is based / focused on fundamentals of the Company and forward-looking statements as such, may not match with a report on a company’s technical analysis reportEach of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report: Dharmesh KantFollowing table contains the disclosure of interest in order to adhere to utmost transparency in the matter: INSL, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. INSL reserves the right to make modifications and alternations to this statement, as may be required, from time to time. Research Analyst has not served as an officer, director or employee of Subject Company One year Price history of the daily closing price of the securities covered in this note is available at www.nseindia.com and www.economictimes.indiatimes.com/markets/stocks/stock-quotes. (Choose name of company in the list browse companies and select 1 year in icon YTD in the price chart))
Next Story
Commodity Research Report – 24th April 2019
BULLION Gold and silver prices slides to 4-months low on strong dollar. Trend volatile Review Yesterday, both the precious metals were trades weak in international markets. Gold settled at $1273.20 per troy ounce down by 0.34% while silver settled at $14.79 per troy ounce down by 1.20%. Domestic markets were also settled weak. Gold settled at Rs.31562 per 10 gram with the loss of 0.11% and MCX Silver settled at 36976 per 1 kilogram with the loss of 1.08%. Gold and silver prices slides to 4months low in yesterday are trading session. Strong rally in Dollar index and U.S. equity markets puts pressure on precious metal prices. U.S. equity index are near record high is main element to pushes precious metals down. Strong dollar, positive U.S. equities and positive Chinese data is negative for bullion prices. We expect Gold will test its key support level of $1260. Gold is having support at $1266-1260 and resistance at $1278-1284. Silver is having support at $14.64-14.50 while resistance at $14.94-15.10. TECHNICAL OUTLOOK Today, Gold is having support at 31461-31360 while resistance at 31651-31741, silver is having support at 36719-36462 and resistance at 37344-37712. Traders are suggested to trade in a range with strict stop loss. ENERGY Crude oil prices extend rally after U.S. sanctions on Iran. Trend firm. Review Yesterday, Crude oil prices trade positive in international market WTI Crude settled at $66.30 while Brent settled at $74.46 per barrel. At MCX Crude oil settled positive at 4641 per barrel with the gain of 1.05%. Crude oil prices extend rally and hover to 2019 high after Washington abruptly moved to end all Iran sanctions waivers by May, pressuring importers to stop buying from Tehran. Now that Trump has put into action his plan to bring Iranian oil exports to zero, he expects OPEC+ members, which include Russia, to quickly reverse their production cuts, as well as replace lost barrels from Iran and other sources such as Venezuela and Libya. Saudi Energy Minister Khalid al-Falih said on Monday the kingdom will work to ensure the availability of oil supplies and the lack of market imbalance following the end of the U.S. sanction waivers on Iran. Market will take direction from today’s U.S. weekly inventory data. We expect crude oil to test resistance level of $67.50. Crude oil is having support at $65.80-65.20 and resistance at $67-67.50. TECHNICAL OUTLOOK Crude oil is having support at 4599-4556 while resistance at 4675-4708, trades are suggested to trade in a range with strict stop loss. BASE METALBase metals dip on improving supply and strong dollar. Trend volatile. ReviewYesterday, base metal prices settled weak in international market. 3M LME copper flat at $6424 per metric ton down by 0.60% from previous close. Base metal prices shows weakness as market is well supplied and strength in dollar index. Nickel prices hit a two-month low on Tuesday on signs of rising supply while the wider market also fell on a stronger dollar and uncertainty about the Chinese economy. Data showed the deficit in the global nickel market for the first two months of the year narrowed sharply to 5,700 tons, down from 24,400 tons in the same period last year. Zinc inventory is also rising in LME warehouse and which is also in pressure from last two-three trading sessions. We expect base metal prices remain volatile and strong dollar will be main villain for base metals. Today, Copper is having support around 444-441 while resistance at 449-452. Nickel will trade in a range of 848-888, Zinc will trade in a range of 221-226, and Lead will trade in a range of 131-136 while Aluminium trade in a range of 149-154.TECHNICAL OUTLOOK Copper is having support at 444 and 441 while resistance at 449 and 452, traders are suggested to trade as per levels with strict stop loss. AGRI COMMODITYWeak rupee and govt. procurement give breathe to agriculture commodities. Trend volatile. ReviewYesterday, Soybean settled positive in domestic markets at 3724 per quintal with the gain of 0.30%. CBOT were settled at 862. Weakness in rupee and government procurement in Chana and Mustard give breathe to agriculture commodities. Yesterday almost all counters settled in green but strong dollar and weakness at CBOT and Bursa Malaysia will puts pressure on oil complex. Other commodities at NCDEX settled positive, Chana settled with the gain of 0.34%, Castor seed settled positive with the gain of 0.04%. RM Seed closed positive with the gain of 0.64%. Guar Seed settled negative with the loss of 0.14% while Guar Gum settled with the loss of 0.02%. Spices pack settled positive Coriander, Jeera and Turmeric settled with gain. Cotton seed oilcake closed positive with the gain of 0.69%. Refined Soyoil closed positive with the gain of 0.24%. We expect Refined Soyoil to trade in a range of 730-747. TECHNICAL OUTLOOK Soybean is having support around 3690-3660 while resistance at 3750-3780, Refined Soyaoil is having support at 734-730 while resistance at 744-747 traders are suggested to trade as per levels with strict stop loss. News Source: Bloomberg, investing.com, kitco.com and ticker news.Disclaimer: This document is not to be construed as an offer to sell or the solicitation of an offer to buy any commodity. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this material only. IndiaNivesh directors and its clients may have holdings in the commodity and currencies mentioned in the report.)