Market View | August 11, 2021

Welcome, all! Here, we present our market views based on the factors visible in the market, domestically and globally. To begin –

Recap of last trading session (10 August 2021) –

1. Although indices closed marginally higher to previous close, the day was, especially after mid-noon, was a roller coaster ride.
2. In observation to derivatives, the morning had a huge premium at straddle positions and those of ATM contracts were quite a scenic for option writers [Ex: Bank Nifty – Spot 36216 | Future 36296 | 36200 12 August 2021 Expiry – CE at 256 & PE at 216
3. As discussed in yesterday’s view, we faced resistance on upside after the quick gapup move, i.e., around 16300 & 16350 (High – 16359)
4. The metals, mid caps and small caps were among the losers yesterday although the benchmark indices closed in green.
5. Check and subscribe to stay updated for 11th August analysis.

IPO Section

• There are 4 IPOs in action this week.
• GMP is on rise for all the 4 IPOs (Note: GMP is not a decisive factor, but only a rough indication).
• IPO Timelines –
  • CAR TRADE – 9th August to 11th August
  • NUVOCO – 9th August to 11th August
  • APTUS – 10th August to 12th August
  • CHEMPLAST – 10th August to 12th August

CAR TRADE | APTUS | NUVOCO | CHEMPLAST

• More details to follow soon. Subscribe to the blog, follow the channel and stay updated.

For 11th August 2021 –

Domestic Cues

• Although there’s been a volatile moment across the scrips and there’s been a decline in many, the breadth of the overall indices or benchmark indices remains positive.
• There’s been a sell off in the mid caps and small caps alongside the metal space.
• The supports still hold good at 16170 (a test couple of times) followed by 15960 – 16000.

Global Cues

Finding Way in Markets (originally, this is an active WhatsApp group where we discuss Finance & Economics, and here are those snippets)

• Asian markets started on a weaker note.
• The commodity prices have been heavily volatile with metals showing signs of stability while crude cruised upwards.
• US Markets are holding within the range with not so attractive earnings on the street.
• SGX Nifty is slightly trading upwards. Caution advised.

• Long Term
  • UCO Bank
    • Current Market Price stands around INR 12.85.
    • The promoters (Govt. of India) are increasing their stake over time.
    • One serious red flag found is the humongous number of contingent liabilities and everything aside that seems improving.
    • It’s a risky bet but the rewards are enticing, hence a pick from our discussions.
    • We’re looking for 60% return in this position.
  • JSW ISPL
    • Current Market Price stands around INR 34.8.
    • The fundamentals of the company are sound.
    • On preliminary research we haven’t found any notable red flags.
    • We’re looking for 20% return in this position.

Disclaimer:

• We hold positions in these scrips.
• Although we come up with unbiased views, it is in good faith about disclosing whether we we hold positions in these scrips.

Results Today – below are the companies declaring Q1 – 2021-22 results today.

Bata India | Pidilite India | Cummins India | Cadilla Health Care

Scrips in FnO Ban – CANBK | IBULHSGFIN | NATIONALUM | RBLBANK | SAIL | SUNTV | PNB

Source: NSE Website

Disclaimer:

The analyst is not a SEBI RIA. The views expressed by Govardhan are completely to serve educational and learning purposes. Please consult your financial advisor before entering any positions. We, in no way, are responsible for the profits made or losses incurred.

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Thanks! Have a Good Trading Day!