A breakout on either side of the band will give a clear indication of the further trend

The Nifty witnessed a V-shaped reversal rally but the gains were capped at 11,150 levels on August 28. On the lower side, as per the change of polarity principle, the short-term moving average -- 20-day EMA -- for the index is currently working as a key reversal point.

Last hour buying on August 28 pushed the price above its important physiological mark of 11,000, which has squeezed the body of the candle with a slightly longer wick on its lower side.

The level of 11,150 is further supported by the Fibonacci ratio on the daily interval for the benchmark index. Currently, the Nifty pack is trading between its 50 (11,200) and 100-EMA (10,800) band on the weekly timeline.

On the Options front, maximum Put open interest (OI) is placed at 11,000 strike. The maximum change in Call OI is seen at 11,100, followed by 11,200 strikes.

The next immediate support for the Nifty is placed at 10,800 levels, while resistance is observed at 11,200 levels. Now, a breakout on either side of the band will give a clear indication of the further trend.

Get Best Option  Trading  Tips in Stock Market and Get Free Trial For More Information Contact us @9644405057

An interest payment default of Rs 9.42 crore occurred on secured NCDs (5 years tenure) and of Rs 4.71 crore on 10 years NCDs, the company said

After three successive sessions of gains, shares of Dewan Housing Finance Corporation (DHFL) tumbled 5 percent on BSE on August 28, a day after the company said it defaulted to the tune of Rs 14.13 crore towards interest payments on bonds.

An interest payment default of Rs 9.42 crore occurred on secured NCDs (5-year tenure) and of Rs 4.71 crore on 10-year NCDs, the company said in a regulatory filing.

Separately, the housing finance company said it planned to raise funds through equity share sale or other means as part of the debt resolution plan.

The company's board will to meet on August 30, when the proposal would be tabled, the firm said in another regulatory filing.

The fund mop-up can also be through any other permissible mode or a combination of prospectus or placement document or letter of offer or any other permissible offer, it added.

Shares of DHFL were trading 1.96 percent down at Rs 47.50 at 1115 IST.

For More Information Contact us @9644405057 or visit @Option Trading Tips

The lender is looking to buy out assets worth around Rs 6,000 crore from the fund-starved non-banking finance companies this quarter

Shares of Bank of Baroda climbed over 4 percent on BSE on August 27, a day after the public lender said it's capital raising committee has approved raising up to Rs 2,150 crore in Tier-I, II bonds

"...capital raising committee of our bank has approved today i.e. on 26.08.2019, the issuance of Basel III compliant additional Tier I bonds for aggregate total issue size not exceeding Rs 1,650 crore, with a base issue size of Rs 500 crore and a greenshoe option to retain oversubscription up to Rs 1,150 crore," the bank said in a regulatory filing.

Meanwhile, the bank is looking to buy out assets worth around Rs 6,000 crore from the fund-starved non-banking finance companies this quarter, PTI reported on August 26, quoting a senior bank official.

The lender had already bought around Rs 3,500 crore loans from NBFCs in the June quarter, while for the year March 2019, it had purchased assets worth around Rs 10,000 crore from NBFCs/housing finance companies.

The bank is in discussions will NBFCs/HFCs such as PNB Housing Finance, Indiabulls Consumer Finance, IIFFL, Annapoorna MFI among others for this, the report further said.

In the budget, the government had said it would provide a one-time six months' partial credit guarantee to public sector banks for the first loss of up to 10 percent on their purchases of high-rated pooled NBFC assets, amounting to Rs 1 trillion.

The lender is also targeting to disburse Rs 1,000 crore under the Reserve Bank's recently introduced co-origination model between banks and non-banking financial companies, this quarter and has already lent Rs 50 crore to Srei Finance and Edelweiss Financial.

The bank is also in talks with 10 more NBFCs and micro-finance companies, including Cholamandalam, Indiabulls Housing, Adani Capital, IIFL Finance, Hero Housing, and Centrum Housing, among others for this

FOR MORE UPDATES CONTACT US @ Future and Option Tips OR 9644405057

Selling life insurance has never been easy, but getting investors to buy their stocks is becoming all too easy for life insurers. A booming business and a growing market share have led to big gains for the three listed life insurance companies in India

Shares of HDFC Life Insurance Co. Ltd and SBI Life Insurance Co. Ltd has surged 33.59% and 37.37%, respectively, so far this year. Even ICICI Prudential Life Insurance Co. Ltd hasn’t fared badly, with returns of 19.14%, although its growth in the past two quarters has been wanting. In comparison, the Nifty Financial Services index has risen about 4.27% in 2019.

There are several factors that seem to have worked for life insurance companies. But, Nomura Financial Advisory and Securities (India) Pvt. Ltd highlighted the main reason.

“Private insurers (excluding ICICI Prudential Life) continue to deliver robust growth in spite of volatile markets; this, coupled with increasing protection share in the business mix, justifies the re-rating in the last four months, in our view," it said in a note to clients.

In the first four months of FY20, private sector insurers saw 23% new business growth in retail, in terms of annualized premium equivalent, even as the overall industry growth was 15%, primarily due to Life Insurance Corporation of India’s (LIC’s) 5.5% growth.

This growth was led by non-participatory and annuity products.

Aggressive marketing of term plans in the past two years has helped HDFC Life and even its peer's corner market share from the country’s largest life insurer, LIC.

“Shrinking profitability of the linked business has made it a mere revenue driver, edging players to move towards non-linked products (protection, annuities and return-guarantee) for profitability," said Jefferies India Pvt. Ltd in a note.

The growth in retail insurance sales of non-participatory products has made the portfolio of life insurers more stable and increased margins.

Life insurance stocks are likely to continue to enjoy investor attention over the next few quarters, too, though analysts warned that the profitability metrics may have peaked for some firms.

FOR MORE UPDATES CONTACT US @ Future and Option Tips OR 9644405057

Gangwal said the board has now approved a new related-party transaction policy and to also close an open issue if the Articles of Association are amended at the company's upcoming annual general meeting (AGM) to increase the board size to 10 directors

InterGlobe Aviation promoter Rakesh Gangwal on Friday said the company’s board has approved a new policy on related-party transactions, amid an ongoing feud with co-promoter Rahul Bhatia over governance issues. The company is the parent of the country’s largest airline IndiGo. “While much work lies ahead, including mending some fences and the regulators completing their investigations on the governance issues raised with them, it is gratifying to see progress towards better governance,” Gangwal said in a statement.

Gangwal said the board has now approved a new related-party transaction policy and to also close an open issue if the Articles of Association are amended at the company’s upcoming annual general meeting (AGM) to increase the board size to 10 directors. “In light of this positive and important development, I will be supporting the proposed changes to the Articles,” he said.

Get Best Stock Options Tips For More Updates in Stock Market Tips Give a Missed call @9644405057 and Get Free Trial

Market downgrades have been dogging rating agency scrips. In the past year, the CARE Ratings Ltd stock tumbled 59%, while Icra Ltd and Crisil Ltd slid 29% each. Comparatively, the Nifty 500 index slipped only 11%. What lies ahead for these stocks

Lately, negative news has dominated the credit rating business, with the top management of two rating agencies asked to step down. Agencies may also need to separate their rating and non-rating businesses.

“While business momentum has been improving, the absence of top management in two large CRAs (credit rating agencies) and the reports of an unbiased rating for IL&FS are negative, in our view. The third CRA might have to comply with the regulations to separate rating and non-rating businesses, affecting stock performances," said Elara Securities (India) Pvt. Ltd in a note to clients.

To top it all, in the bread-and-butter rating segment, growth has slowed to a crawl. Crisil’s rating division grew 2% year-on-year due to a drop in bank-loan ratings and fewer corporate-bond issuances. Icra’s rating revenues dropped 8%, while CARE Ratings’ fell 21%.

Much of the tight liquidity conditions and sluggish issuances may continue to persist. For credit rating agencies, this poses significant challenges. “Bank credit contracted 1.3% in Q1 FY20 as headwinds blasting NBFCs since end-Q2 FY19 impacted the number of bank-loan ratings. The quarter also saw fewer bond issuances, both corporate and financial. Further, ICRA seems to have lost share in the corporate-bond market after a default by a client," said Edelweiss Securities Ltd in a note to clients.

Meanwhile, securitization, which was growing lately, too is slowing. A double whammy to the rating business comes from corporate bodies shying away from incurring significant capital expenditure. Rating revenues could continue to grow marginally.

Additionally, credit rating agencies have been hit by regulatory costs and higher operating expenses that will weigh on operating margins going ahead.

Ostensibly, much hinges on credit offtake reviving. Thankfully, contracting interest rates could spur credit offtake later. But until then, these stocks may take time to see the light at the end of the tunnel.

Get Best Stock Options Tips For More Updates in Stock Market Tips Give a Missed call @9644405057 and Get Free Trial

Global software major Infosys on Wednesday expanded its partnership with Google Cloud to help its clients accelerate their digital transformation

"As a qualified Google Cloud managed service provider, we will offer clients application lifecycle services with cloud and data analytics expertise," said the city-based IT firm in a statement here.

The partnership with the global search engine will enable the software vendor to offer consulting, assessment, migration and support services to enterprises for optimising their workloads on the Google Cloud Platform.

"We will offer industry-specific solutions on the Google platform for healthcare, financial services, insurance, telecom and retail industries," the outsourcing firm said.

The partnership also strengthens the vendor's capabilities to help companies innovate and industrialise analytics, drive accelerated insights for new revenue models, realise savings and achieve faster time to market.

Other services offered are data cafe, an enterprise portal for data exploration, and cognitive conversational inter-faces for contextual interactions.

Services include data marketplace for managing data as an asset, data governance and data operations across hybrid platforms.

"As Cloud has been a focus area for us, we invest in new solutions, partnerships and offerings to enable our clients to navigate their digital transformation journeys," said Infosys Vice-President David Wilson in the statement.

Enterprises will benefit from Google Cloud's secure platform and Infosys' expertise in data, AI, analytics, workload migration and cloud deployments.

"We are expanding our partnership with Infosys, which has domain expertise in managed services, as enterprises want to move mission-critical workloads to Google Cloud," said the Google arm's Vice-President Carolee Gearhart in the statement.

Get Best Stock Options Tips For More Updates in Stock Market Tips Give a Missed call @9644405057 and Get Free Trial

The National Company Law Appellate Tribunal (NCLAT) on Thursday expressed its displeasure over the crisis-hit IL&FS and the government's delay in filing the progress report on the resolution process of the group companies

"In spite of our order dated 12th July 2019 no 'Progress Report' has been filed by Union of India or IL&FS. They are allowed to file the 'Progress Report' by tomorrow (Friday)," said the NCLAT order.

The bench headed by NCLAT Chairperson S.J. Mukhopadhaya further asked the government to settle the claims of all the creditors of the Moradabad-Bareilly Expressway Ltd, the Jharkhand Road Projects Implementation Company, and the West Gujarat Expressway Ltd as per signed 'Term Sheet', before the next hearing on September 5. 

"The Union of India or IL&FS should also give notice to all the financial creditors of rest of the 10 'Amber' entities and take preliminary step by taking their consent in the manner it was followed in the cases of aforesaid three amber entities," it said.

Further, by the next hearing the government and IL&FS would also have to intimate the steps which they intend to take with regard to all the 82 red entities, the bench said.

The new board at IL&FS had classified the IL&FS group companies into three categories -- 'green', 'amber', and 'red' -- on the basis of their ability to service debt obligations to secured and unsecured creditors. Firms classified as "green" would continue to meet their payment obligations, while "amber" category firms can meet only operational payment obligations to secured financial creditors.

Those under the "red" category are the entities which cannot meet their payment obligations at all.

The bench further said that it would be open to the government and ILFS to call for meeting of the lenders and if necessary, the matter can be taken up on day-to-day basis to ensure that the total process with regard to all the amber entities, particularly the aforesaid three companies which IL&FS has decided to reclassify as green entities, is concluded on an early date. 

"They will keep it in mind that already 300 days approx. have completed since the Interim Order was passed on 15th October 2018," the order said. The appellate tribunal directed the government and IL&FS to file a fresh progress report by September 3.

FOR MORE UPDATES CONTACT US @Future and Options Tips OR 9644405057

The Indian civil aviation sector is showing signs of recovery months after the grounding of Jet Airways with domestic air passenger traffic demand grew 7.9 per cent in June, a global airline association said on Thursday

According to the International Air Transport Association (IATA), India's domestic air passenger volume -- measured in revenue passenger kilometres was the third-highest among the major aviation markets such as Australia, Brazil, China, Japan, Russia and the US.

India's domestic RPK in June rose by 7.9 per cent as compared to the corresponding month of the previous year.

In the period under consideration, India's domestic passenger traffic growth was preceded by that of China at 8.3 per cent and Russia at 10.3 per cent.

The country's domestic available passenger capacity measured in available seat kilometres stood higher by 3.1 per cent in June, followed by China at 8.9 per cent and Russia at 9.8 per cent.

"The domestic India market has proven resilient in the face of the demise of Jet Airways earlier in the year," IATA said in its global passenger traffic results for June 2019.

"Growth in domestic RPKs have recovered strongly, lifting to a 7.9 per cent year-on-year pace in June, as the remaining carriers moved quickly to fill the gap created by the loss of a competitor and to meet the customer demand," it added.

FOR MORE UPDATES CONTACT US @ Future and Option Tips OR 9644405057

If the index breaks below 10,782 then further decline towards 11,580 and 10,450 levels is possible. Maximum open interest for Put is seen at strike price 10,800

Indian equity markets shrugged off weak global cues immediately after opening lower and witnessed steady gains through the day to touch intraday high of 11,018 on August 6

But, profit booking in the last hour of trade saw the Nifty closing off its high at 10,948, up by 0.79 percent. The broader market indices outperformed the benchmark as BSE Midcap and Smallcap gained 1.4 percent and 1.7 percent, respectively, for the day.

The market breadth on the NSE was positive with eight advancing stocks versus three declining. Following August 5 Hammer candle, the Nifty has formed a bullish engulfing pattern on the daily time frame that suggests buying at lower levels.

However, if the index breaks below 10,782 then it may decline further towards 11,580 and 10,450. In the Nifty weekly options, maximum open interest for Put is seen at strike price 10,800 followed by 10,700; while for Call maximum open interest is seen at 11,200 followed by 11,000. The index bounced back after touching a low of 10,782. If the index crossed and sustained above 11,020, the index could see a pullback towards 11,150-11,200.

India VIX closed for the day at 16.12, down 2.77 percent. VIX is at higher levels after a sharp bounce from lower levels suggesting volatility to continue.

For More Information Contact us @9644405057 or visit @Future and Option Tips

Domestic net interest margin contracted 10bps sequentially and 29bps YoY to 2.85 percent in the quarter ended June 2019

Indian Bank shares rallied 6.7 percent intraday on August 6 after lower provisions and other income lifted June quarter profitability 75 percent year-on-year, but slippages remain elevated on a sequential basis.

The stock has fallen nearly 50 percent in the last one year, but August 6 gain was in addition to the 3.5 percent upside seen in the previous session. It was quoting at Rs 199.75, up to Rs 9.85, or 5.19 percent, on the BSE at 1049 hours.

Profit in the June quarter increased sharply by 74.6 percent year-on-year to Rs 365.4 crore, but net interest income fell 1.2 percent YoY to Rs 1,785.4 crore due to higher cost of funds and elevated slippages in Q1.

Slippages for June quarter stood at Rs 1,077 crore, rising 7.2 percent sequentially, though declined more than 22 percent year-on-year. Annualised slippage ratio jumped to 2.34 percent in Q1 against 2.14 percent in the previous quarter.

Get Best Options Trading Chart For More Updates in Stock Market Tips Give a Missed call @9644405057 and Get Free Trial

Tech Mahindra Ltd’s shares had underperformed the market after its revenue growth fell sharply in the March quarter. Profit margins narrowed at a higher-than-expected pace as well, raising concerns about its earnings. The June quarter results, released after market hours on Tuesday, provide no major reason to alter the stock’s trajectory

Dollar revenues grew just 1.9% year-on-year and fell 1.6% compared to the March quarter. “In the current quarter, the company faces seasonality, however, even after factoring the seasonality, Tech Mahindra’s revenues were below our expectation," ICICI Direct Research said in a note. 

Worse still, the fall in profitability was far higher than Street expectations. Ebit (earnings before interest and tax) margins contracted 1.5 percentage points from a year ago. 

As a consequence, operating earnings (Ebit) in dollar terms dropped 9% from a year ago. Sequentially, they are down as much as 26%. “Margins are way below estimates leaving room for earnings-per-share cuts," an analyst said in a note to his clients. 

For More Information Contact us @9644405057 or visit @Ripples Advisory 

Gross slippages remained higher at Rs 4,798 crore at the end of June quarter 2019, against Rs 4,337 crore in the corresponding period last fiscal and Rs 3,012 crore in March quarter 2019

Private sector lender Axis Bank's June quarter (Q1) profit grew sharply by 95 percent year-on-year to Rs 1,370 crore, but provisioning and slippages remained higher. It was 

supported by NII, other income and operating profit.

The profitability was higher due to the low base in a year-ago period. The bank had 

reported a profit of Rs 701 crore in Q1FY19.

Net interest income increased 13 percent year-on-year to Rs 5,843.65 crore in the quarter 

ended June 2019, with 13 percent loan growth YoY.

For More Information Contact us 9644405057 or visit Option Tips

Gold futures were trading higher during the morning trade in the domestic market on Tuesday as speculators built up fresh positions in domestic markets. 

Gold prices dipped on Tuesday as the dollar rose to a two-month high, while investors awaited the outcome of a two-day U.S. Federal Reserve policy meeting expected to result in a cut in interest rates.

Analysts said the rise in gold prices was mostly on the back of 34938.00 fresh positions built up by the participants. 

At the MCX, gold futures for August 2019 contract is trading at Rs 34730.00 per 10 grams, up by 0.06 per cent, after opening at Rs 34704.00, against a previous close of Rs 34709.0. It touched the intra-day high of Rs 34773.00

Get free Trial and Best Option Trading Tips For More Information Contact us 9644405057

The new infusion came through two holding entities including Rajdhani Investments & Agencies and DLF Urva Real Estate Developers & Services which has taken the promoters’ collective stake to 74.95 percent in the company.

Shares of real estate major DLF gained as much as 2 percent intraday on June 28 after its promoters infused Rs 2,250 crore in the company against the issuance of new equity shares.

The scrip has added as much as 6 percent in the last three days.

The new infusion came through two holding entities including Rajdhani Investments & Agencies and DLF Urva Real Estate Developers & Services which has taken the promoters’ collective stake to 74.95 percent in the company.

The DLF board has now allotted 138.1 million equity shares at Rs 217.25 each against the convertible debentures. Earlier in May, the board had issued 130 million shares at the same rate. The promoters will now have 268.1 million new equity shares in their possession since March 31 with the current infusion.

FOR MORE UPDATES CONTACT US @ RIPPLES ADVISORY  OR 9644405057

The general public is expecting the government to provide incentives to those who are actually investing in the growth of the country and introduce measures to widen the base of capital markets in India.

Dhruva Advisors LLP

Capital markets play a pivotal role in the growth of the economy and development of the overall financial system. A vibrant capital market acts as a platform for bringing together investors with surplus capital and businesses with the need for capital to expand or improve their operations.

Development of capital markets has always been a key economic objective of developing countries like India.

As the new government prepares to present a Union Budget for FY20, the general public as well stock markets are expecting the government to provide incentives to those who are actually investing in the growth of the country and introduce measures to widen the base of capital markets in India.

The Government of India can boost capital markets in the following ways:

Removal of tax on Long-term Capital Gains (LTCG):

Re-introduction of LTCG tax has adversely impacted the capital market of the country as the investments in the country have become less lucrative and more volatile.

It has also complicated taxation structure on listed securities and equity mutual funds, which has affected sentiments of investors.

Now, removal of LTCG tax will help in channelling more funds to stock markets either directly or through mutual funds, and it will act as an incentive for attracting conventional investors who otherwise invest in gold, fixed return instruments, or real estate. It will help broaden the base number of market participants.

Removal of Securities Transaction Tax (STT):

Under current tax laws, in respect of equity-oriented funds, there is a double levy of STT, once at the time of sale of securities by mutual funds and again at the time of redemption by investors.

This double levy of STT adversely impacts the returns in the hands of investors and acts as a deterrent from investing in mutual funds.

STT should be completely removed in order to encourage participation and deepening of capital markets.

Benefit for unlisted shares offered for sale in an IPO:

Currently, promoters planning to list their companies are not entitled to the benefit of cost step-up of shares sold by them under Offer for Sale (OFS).

Given that the available money is chasing a limited number of stocks, it would be worthwhile to take steps that will help widen the market base. To meet this objective, the government may consider extending the benefit of cost step-up to OFS shares.

This may be done by providing that the book value of unlisted shares as on 31 January 2018 shall be considered as its fair market value (FMV).

This will widen the choice for investment in stocks and thereby avoid an unnecessary bubble in few stocks.

Increase of investment limit u/s 80C:

The government should consider increasing investment limit u/s 80C from Rs 1.5 lakh to Rs 2 lakh in order to encourage individual taxpayers to invest more in the capital market through Equity Linked Saving Schemes (ELSS) which will further push the capital markets.

Introduction of Debt Linked Saving Schemes (DLSS):

DLSS on the lines of ELSS shall be introduced to channel investments into the corporate bond market. Introduction of DLSS will motivate small investors to participate in the bond market at low cost and at lower risk which will ultimately deepen the capital market of the country. This shall also help to ease the liquidity issue the businesses are currently facing.

Providing option of capital gains schemes through lock-in based debt/equity schemes:

Options for investment-linked Capital gains tax exemption may be expanded by creating suitable schemes which will channel money into capital markets (through debt/equity mode) for a particular lock-in period.

Furthermore, the limit of investment in such units shall be increased to one crore rupees. This will encourage people to invest more depending on risk appetite and at the same time address the current liquidity issue.

Removal of Dividend Distribution Tax (DDT) and HNI tax on dividends:

One of the top priorities of the government is to attract investments (domestic as well as foreign) in order to boost business and create jobs.

One of the reasons investors are shying away from investing is the huge tax cost that is impacting their returns significantly. DDT is one of the major deterrents especially because it is not available as a tax credit and, in fact, dividends are further taxed in the hands of resident investors at 10 percent (HNI tax).

The government should move back to the old system of taxing the investors in their individual hands by reducing the tax rate as well as abolishing HNI tax on such dividend income. This will improve returns for investors and will ultimately attract more investors.

The above article was co-authored by Vishal Gada, Partner; Pankhuri Kapur, Senior Associates; and Zeel Gada, Principal from Dhruva Advisors LLP.

FOR MORE UPDATES CONTACT US @ RIPPLES ADVISORY

Net Sales at Rs 226.78 crore in December 2018 up 15.24% from Rs. 196.79 crore in December 2017.

Quarterly Net Profit at Rs. 57.34 crore in December 2018 up 100.49% from Rs. 28.60 crore in December 2017.

EBITDA stands at Rs. 89.29 crore in December 2018 up 81.74% from Rs. 49.13 crore in December 2017.

Just Dial EPS has increased to Rs. 8.50 in December 2018 from Rs. 4.25 in December 2017.

Just Dial shares closed at 474.40 on January 21, 2019 (NSE) and has given -14.78% returns over the last 6 months and -21.44% over the last 12 months.

ADVANTAGEOUS SERVICES ARE AVAILABLE FOR CLIENTS ALONG WITH FULL TECHNICAL SUPPORT TO MAKE YOUR FINANCIAL TRADING EASIER. CLICK HERE TO SUBSCRIBE US FOR FREE >> Option Trading Tips