Finally some respite for the bulls was observed in yesterday’s session as the market underwent a decent pullback amid the weak global cues. The index Nifty spot started the session with a downside gap indicated by the SGX NIFTY but recovered sharply as the day progressed. At one point of time it went above 11000 mark and gained around 150 points. Eventually, it closed with a gain of around 85 odd points at 10948. Meanwhile, NIFTY BANK index too ended with gains of 1.35%.
Right from the beginning of the session, market breadth remained in the favor of advancing counters. On the sectoral front, apart from NIFTY MEDIA (-1.18%) and NIFTY IT (-0.02%) all the other group indices closed in positive terrain. Form the pack of gainers, NIFTY REALTY (1.76%) and NIFTY PVT BANK (+1.59%) stocks were the top performers. From the F&O pack, DHFL (+35.4%), SRF (+15.9%) and IBULHSGFIN (+8.7%) outperformed others.
OUTLOOK
In our previous report we mentioned about the hammer formation on the daily chart of nifty spot which had a high of around 10900. Yesterday the index started the session near 10820 and recovered sharply to clear the hammer. Post that strong short covering was observed. Nifty registered an intraday high of 11018 and closed well below the same. We initiated a positional buy recommendation in NIFTY FUT around 10940 with a stop of 10790 for the upside target of around 11200. Of this, we have already booked partial profits at 11040.
In today’s session, once the index start with a downside one should wait for some buying traction in order to go long. We would assess the conditions and initiate a trade for short term traders. Aggressive buy can be now be above yesterday high of 11018 in spot. BANKNIFTY spot has a strong resistance at 28150. Fresh buy above the same. On the downside support is at 27750 below which selling could resume.
DERIVATIVE OUTLOOK
In index futures, FIIs remained bearish by adding shorts in index futures.
Prop traders turned bullish by writing PE options.
As per the options data, support has shifted to 10,800 due to PE concentration. On the upside, 11000 could be strong hurdle now since we witnessed huge OI built up of around 2.2 million shares in 11000 CE option.
Posted by Mehul Kothari | Published on 06-AUG-2019
ISSUE HIGHLIGHTS
Offer for Sale of 4,00,64,102 shares by Promoters aggregating upto Rs. 3,125 crs
Objects of the Issue
To achieve the benefits of listing
Enhance visibility and brand image of the company
The proceeds from the offer will go to promoters, offering their shares for issue
ABOUT THE COMPANY
Sterling and Wilson Solar Ltd (SWSL) was originally incorporated at Mumbai on March 9, 2017 as Rashmika Energy Private Limited
It had commenced operations in 2011 as the Solar EPC Division of Sterling and Wilson Private Limited (SWPL), and was subsequently demerged in 2017
Over a span of seven years, SWSL became one of the largest solar EPC solutions provider in India, Africa and the Middle East according to IHS Markit in 2018
THE BUSINESS
SWSL is a end-to-end solar engineering, procurement and construction (“EPC”) solutions provider, and is world’s largest solar EPC solutions provider in 2018 based on annual installations of utility-scale photovoltaic (“PV”) systems of more than five mega-watt peak (“MWp”), according to IHS Markit
SWSL provide EPC services primarily for utility-scale solar power projects with a focus on project design and engineering and manage all aspects of project execution from conceptualizing to commissioning
SWSL has impressive commissioned and contracted portfolio of 205 solar power projects with an aggregate capacity of 6,870.43 MWp
Some of SWSL’s Key Projects being :
Single location solar power plant of 1177 MWp in Abu Dhabi
580 MWp solar power plant in Rajasthan, India
22.32 MWp solar power project in Philippines
VALUATION
SWSL post issue is available at a PER of 19.60x FY19. It enjoys high return ratios, ROE being 76.13. It is an asset light business model. FY19 posted impressive operating and net profit growth boosted by higher operating efficiencies and leverage. It’s outstanding order book stands Rs.3,831 crores. Given, the Government’s impetus on renewable energy and few domestic companies available for catering to its rising demand; SWSL looks sweetly poised to reap on the benefits. Government of India has set a target of 225GW of power generation from renewable energy by 2022, which presently is at 70GW. A major business opportunity for EPC players and power producers. Given, the visibility and financials, SWSL’s is likely to re-rated post listing. We recommend subscribe.)
Posted by Mehul Kothari | Published on 08-AUG-2019
NIFTY CHARTTuesday’s recovery was followed by another major selloff in the domestic markets during yesterday’s session. The index Nifty started the session on a flat to positive note but kept on inching lower as the day progressed. Eventually it lost another 100 points on closing basis. During the process, it sneaked below 10900 mark on closing basis. Meanwhile, NIFTY BANK index too ended with loss of 1.14%.Right from the beginning of the session, market breadth remained in the favor of advancing counters but ended in negative terrain. On the sectoral front, NIFTY PSU BANK (-3.36%) and NIFTY METAL (-2.39%) counters remained under extreme pressure. Form the pack of gainers, NIFTY MEDIA (+1.89%) and NIFTY PHARMA (+0.78%) stocks were the top performers. From the F&O pack, ZEEL (+4.2%), ARVIND (+4.2%) and LUPIN (+4.1%) outperformed others.After crossing the hammers high of 10900 on Tuesday, yesterday once again we witnessed selling in the markets. However, technically the impact of the hammer would be negated only on a breach of 10780. The long recommendation which we initiated in NIFTY fut at 10940 and booked half at 11040 should be exited on a breach of 10790 only. Till then keep holding those partial positions.With regards to coming session, 10810 might act as an immediate support below which 10780 would be under threat. Upside possible only above 10900 now. Thus, wait for confirmation in order to go long. For NIFTY BANK index, the support is at 27500 followed by 27300 whereas import resistance is at 27900.BATAINDIA: BEARISH
Post its recent correction, BATAINDIA remains in a corrective trend unless it does not clear 1465 level.
Currently, the stock is stuck at the extension of trend line breakdown and RSI too might turn from resistance.
The reward to risk ratio looks lucrative at current levels.
Traders can sell the stock in the range of 1400 - 1420; with a stop of 1465 for the target of 1310 in the coming weeks.
Disclaimer)
Share Market Today - 7th August 2019
MARKET RECAP
OUTLOOK
DERIVATIVE OUTLOOK
RESULTS TODAY
Disclaimer
Previous Story
Sterling and Wilson Solar IPO 2019 – Issue Details, Balance Sheet & Company Highlights
ISSUE HIGHLIGHTS Offer for Sale of 4,00,64,102 shares by Promoters aggregating upto Rs. 3,125 crs Objects of the Issue To achieve the benefits of listing Enhance visibility and brand image of the company The proceeds from the offer will go to promoters, offering their shares for issue ABOUT THE COMPANY Sterling and Wilson Solar Ltd (SWSL) was originally incorporated at Mumbai on March 9, 2017 as Rashmika Energy Private Limited It had commenced operations in 2011 as the Solar EPC Division of Sterling and Wilson Private Limited (SWPL), and was subsequently demerged in 2017 Over a span of seven years, SWSL became one of the largest solar EPC solutions provider in India, Africa and the Middle East according to IHS Markit in 2018 THE BUSINESS SWSL is a end-to-end solar engineering, procurement and construction (“EPC”) solutions provider, and is world’s largest solar EPC solutions provider in 2018 based on annual installations of utility-scale photovoltaic (“PV”) systems of more than five mega-watt peak (“MWp”), according to IHS Markit SWSL provide EPC services primarily for utility-scale solar power projects with a focus on project design and engineering and manage all aspects of project execution from conceptualizing to commissioning SWSL has impressive commissioned and contracted portfolio of 205 solar power projects with an aggregate capacity of 6,870.43 MWp Some of SWSL’s Key Projects being : Single location solar power plant of 1177 MWp in Abu Dhabi 580 MWp solar power plant in Rajasthan, India 22.32 MWp solar power project in Philippines VALUATION SWSL post issue is available at a PER of 19.60x FY19. It enjoys high return ratios, ROE being 76.13. It is an asset light business model. FY19 posted impressive operating and net profit growth boosted by higher operating efficiencies and leverage. It’s outstanding order book stands Rs.3,831 crores. Given, the Government’s impetus on renewable energy and few domestic companies available for catering to its rising demand; SWSL looks sweetly poised to reap on the benefits. Government of India has set a target of 225GW of power generation from renewable energy by 2022, which presently is at 70GW. A major business opportunity for EPC players and power producers. Given, the visibility and financials, SWSL’s is likely to re-rated post listing. We recommend subscribe.)
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Share Market Today - 8th August 2019
NIFTY CHARTTuesday’s recovery was followed by another major selloff in the domestic markets during yesterday’s session. The index Nifty started the session on a flat to positive note but kept on inching lower as the day progressed. Eventually it lost another 100 points on closing basis. During the process, it sneaked below 10900 mark on closing basis. Meanwhile, NIFTY BANK index too ended with loss of 1.14%.Right from the beginning of the session, market breadth remained in the favor of advancing counters but ended in negative terrain. On the sectoral front, NIFTY PSU BANK (-3.36%) and NIFTY METAL (-2.39%) counters remained under extreme pressure. Form the pack of gainers, NIFTY MEDIA (+1.89%) and NIFTY PHARMA (+0.78%) stocks were the top performers. From the F&O pack, ZEEL (+4.2%), ARVIND (+4.2%) and LUPIN (+4.1%) outperformed others.After crossing the hammers high of 10900 on Tuesday, yesterday once again we witnessed selling in the markets. However, technically the impact of the hammer would be negated only on a breach of 10780. The long recommendation which we initiated in NIFTY fut at 10940 and booked half at 11040 should be exited on a breach of 10790 only. Till then keep holding those partial positions.With regards to coming session, 10810 might act as an immediate support below which 10780 would be under threat. Upside possible only above 10900 now. Thus, wait for confirmation in order to go long. For NIFTY BANK index, the support is at 27500 followed by 27300 whereas import resistance is at 27900.BATAINDIA: BEARISH Post its recent correction, BATAINDIA remains in a corrective trend unless it does not clear 1465 level. Currently, the stock is stuck at the extension of trend line breakdown and RSI too might turn from resistance. The reward to risk ratio looks lucrative at current levels. Traders can sell the stock in the range of 1400 - 1420; with a stop of 1465 for the target of 1310 in the coming weeks. Disclaimer)