Tata Technologies IPO GMP

After the closure of Tata Technologies Ltd's initial public offering (IPO) subscription, attention now turns to the allotment and listing dates. Following the T+3 schedule, the likely Tata Technologies IPO allotment date is on Tuesday, November 28, 2023, and the listing date is anticipated to be Thursday, November 30, 2023. The Indian stock market is closed on Saturday, Sunday, and Monday (for Gurunanak Jayanti), contributing to this schedule.

The gray market has seen increased activity in response to the strong IPO booking status of Tata Technologies. Market observers report that Tata Technologies Ltd shares are trading at a premium of ₹402 per share. The Tata Technologies IPO gray market premium (GMP) today is ₹402, showing a ₹5 increase from Friday's GMP of ₹397. The gray market sentiment has improved after a robust response from investors. Notably, the Tata Technologies IPO GMP has risen from ₹340 to ₹402 in just four days, starting from ₹340 before the IPO date on November 21, 2023.

Despite the volatility on Dalal Street, the Tata Technologies IPO GMP has shown resilience. Market watchers suggest that further increases in GMP are possible if there is a trend reversal on Dalal Street when it reopens on Tuesday after the extended weekend.

During the three-day auction from November 22 to 24, 2023, the Tata Technologies IPO garnered substantial interest, with an overall subscription of 69.43 times. The retail portion was subscribed 16.50 times, the NII category received 62.11 applications, and the QIB segment received 203.41 applications.

Investors who have applied for the IPO can check their application status online by logging into the BSE website or the official registrar's website, Link Intime India Private Ltd. The BSE direct link for checking allotment status is https://www.ipogmp.org/ipo-allotment-live-ipo-allotment-check-ipo-allotment, and for Link Intime, investors can use the link https://www.ipogmp.org/ipo-allotment-live-ipo-allotment-check-ipo-allotment/. They need to enter their application details to view the Tata Technologies IPO allotment status.

Tata Technologies IPO GMP

3 reasons OTM Options outperform in low volatility

In 2023, market volatility has remained relatively low for most of the year, characterized by slow and steady movements. However, this low-volatility environment presents both challenges and opportunities for traders.

One of the key challenges in such an environment is the prolonged holding of options positions. As time passes, the premium of an option gradually decreases, resulting in potential losses for option buyers, even if the underlying stock or index doesn't move significantly.

On the flip side, low-volatility markets offer a unique advantage – options across various strike prices and types (Call & Put) tend to have lower premiums. This means that the initial investment required to establish a Buy position in an option is relatively low in a low-volatility environment.

To make the most of this low volatility and slower market environment, traders can focus on strike selection. In options trading, strikes can be categorized into three types:

1. ATM (At the Money): The selected strike is close to the current market price.
2. OTM (Out of the Money): Call strikes are higher than the current market price, and Put strikes are lower than the current market price.
3. ITM (In the Money): Call strikes are lower than the current market price, and Put strikes are higher than the current market price.

Now, let's delve into the reasons why Out of the Money (OTM) options tend to outperform in low-volatility environments:

Reason #1: Lower Investment
OTM options, by definition, involve buying options to Buy Higher (Call) or Sell Lower (Put) than the current market price. This characteristic makes OTM options less attractive to some traders because if the underlying stock or index expires at the current level, OTM Calls and Puts will be worthless. However, in a low-premium environment, OTM options are even cheaper, making them an attractive choice due to their lower investment requirement.

Reason #2: Higher Returns on Investment
While all options move similarly for a given favorable market move, ITM options will typically experience a greater increase in premium than ATM options, and ATM options will see a larger premium increase than OTM options. When assessing returns on investment (Premium Profit / Premium * 100), OTM options tend to shine, offering a more favorable return compared to the premium invested.

Reason #3: Lower Absolute Loss
OTM options have relatively low intrinsic value, translating to lower absolute losses if the market doesn't move as expected. This aspect makes OTM options appealing because traders can limit their potential losses when sticking to a single position in a stock or index.

In summary, the combination of higher returns, lower initial investment, and reduced potential losses makes OTM options an attractive choice for trading in low-volatility environments. However, it's essential to consider individual trading strategies and risk tolerance when selecting strike prices and option types.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.

Valiant Laboratories IPO GMP

Highest ever monthly sales drive Maruti Suzuki to fresh all-time highs

Maruti Suzuki, a prominent player in the automotive industry, has recently experienced a notable surge in its stock price, with an impressive 9% increase over the past week. On September 1st, the company's stock reached an all-time high, reaching Rs 10,397.95, following the announcement of its record-breaking monthly sales figures for August.

During August, Maruti Suzuki achieved remarkable total sales of 1.89 lakh units, showcasing a substantial 14.5% growth compared to the same month in the previous year. This performance also surpassed the earlier estimate by Nomura, which stood at 1.85 lakh units.

Domestic sales also mirrored this growth pattern, with a 14.5% month-on-month increase, reaching 1.64 lakh units, compared to 1.43 lakh units in the same period the prior year. Simultaneously, exports demonstrated robust performance, registering a 15% year-on-year increase, totaling 24,614 units in August, compared to 21,481 units during the same month in the previous fiscal year.

Maruti Suzuki's decision to explore a stock split, prompted by shareholder requests, has further uplifted investor confidence. The company has also unveiled ambitious plans to invest Rs 45,000 crore (approximately $5.4 billion) with the goal of doubling its annual production capacity to 4 million vehicles by 2031.

The positive outlook for Maruti Suzuki is bolstered by its pursuit of a significant market share in the Special Utility Vehicle segment, which is anticipated to contribute to improved profitability in the latter part of the current fiscal year.

Market analysts have responded favorably to these developments, with the global brokerage firm JP Morgan placing Maruti Suzuki on its watchlist for positive catalysts. Furthermore, analysts envision optimistic scenarios, including the sustained growth of market share and enhanced profit margins for Maruti Suzuki, even in the face of increasing discounts and inventory levels. JP Morgan's report suggests the potential for Maruti Suzuki's stock to outperform the broader market.

Maruti Suzuki's shares concluded with a 3.27% gain, reaching Rs 10,331.25 on the National Stock Exchange. This performance was accompanied by robust trading volumes, with 13 lakh shares changing hands, surpassing the one-month daily traded average of 5 lakh shares.

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Check the Latest IPO and GMP

Vishnu Prakash R Punglia IPO: Infrastructure Firm Sets August 24 Opening, Price Range at Rs 94-99 per Share

Infrastructure company Vishnu Prakash R Punglia is poised to launch its Initial Public Offering (IPO) on August 24, offering its equity shares in a price band of Rs 94-99 each. The public issue, consisting of 3.12 crore equity shares, is exclusively a fresh issue by the company.

The IPO also includes a reserved portion of 3 lakh equity shares for its employees, granting them shares at a discounted rate of Rs 9 per share from the final offer price. With plans to raise approximately Rs 308.88 crore through the public issue at the upper price band, the Rajasthan-based engineering, procurement, and construction company aims to channel these funds towards capital expenditure and working capital requirements.

The offering is set to conclude on August 28, while the anchor book will open for a single day on August 23. Prospective investors can bid for a minimum of 150 equity shares and in multiples of 150 shares thereafter. Qualified institutional buyers will have access to half of the issue size, while 15 percent is reserved for high-net-worth individuals (HNIs), and the remaining 35 percent is earmarked for retail investors.

Vishnu Prakash R Punglia, known for its experience in designing and constructing various infrastructure projects, is particularly focused on water supply projects (WSPs). The company has successfully executed over 75 WSPs to date, with 38 WSPs currently under execution. Boasting a strong clientele across different government departments, the company's robust order book includes over 85 projects completed and 51 ongoing projects spread across 9 States and 1 Union Territory.

While the fiscal year 2022-2023 witnessed the company doubling its net profit to Rs 90.64 crore, revenues from operations during the same period surged by 48.7 percent to Rs 1,168.4 crore. Notably, the company has managed to achieve a CAGR of 55.10 percent in its topline growth from FY21 to FY23. Despite the impressive performance, the company's debt has risen, reaching Rs 250.4 crore in FY23, compared to Rs 176.6 crore in FY22 and Rs 110.8 crore in FY21.

The IPO's merchant bankers include Choice Capital Advisors and Pantomath Capital Advisors, while Link Intime India will serve as the registrar.

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Nifty at 20,000 by December? This Elliot Wave analyst believes so

After a disconnect earlier in the year, Indian markets have started aligning with global markets and are expected to move up, founder of India Charts, a financial services firm, Rohit Srivastava has said, adding he expects the Nifty to hit 20,000 by December end."The US and European markets started to recover from January but Indian markets were disconnected due to the Adani-Hindenburg fiasco. That is now behind us and markets are starting to move up," Srivastava told Moneycontrol on June 2.

He was referring to a report by American short-seller Hindenburg Research in late January that accused the Adani group of stock manipulation and other irregularities. The Indian conglomerate denied the charges but the report triggered a rout in group companies' shares, which have since stabilized. The benchmark Nifty50 has recovered more than 9 percent from the March lows to 18,534 now. The Sensex has gained close to 8.5 percent during the period.

"In March, we also had the highest-ever short position build-up by foreign institutional investors. Most of those positions have been covered now. So my sense is that markets bottomed out in March," Srivastava, who specializes in  Elliot Wave analysis, said. Nifty earnings per share (EPS) for the March quarter came in at Rs 233, 5-6 percent higher than the street's estimates. It was up 14 percent sequentially and 13 percent year-on-year.

Banking & financial services, autos, and metals space performed better than expected, while the rest of the sectors were broadly in line."Be it economic growth or earnings growth, we have done better than most parts of the world," said Srivastava. India's Q4 GDP surprised on the upside at 6.1 percent against an estimate of 5 percent. As India aligns with markets globally, the Nifty could hit 20,000 by December-end and the Nifty Bank scale the coveted 50,000 mark, he said.

"It was a one-and-a-half-year-long consolidation phase, which I would call a clean-up phase. From March onwards, we are seeing pretty strong breath. So this should be a continued bull run for the rest of 2023," he said. On June 2, Indian equity benchmarks closed in the green, with the Sensex up 118 points at 62,547 and the Nifty gaining 46 points to close at 18,534.

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Top 10 Factors that affect the Stock Market on Monday

Bulls kept charging the markets throughout the truncated week that ended April 7, pushing the benchmark indices to sustain their rally. A host of reasons such as higher-than-expected PMI manufacturing data, monthly auto sales numbers, provisional Q4FY23 numbers from banks and NBFCs, FII inflow, and the RBI's surprise pause in interest rate hike with upward revision in growth forecast to 6.5 percent from 6.4 percent aided the surge.

The BSE Sensex climbed 841 points or 1.4 percent to 59,833, and the Nifty50 rose 239 points or 1.4 percent to 17,599, supported by banking and financial services, auto, pharma, and infrastructure stocks.

The broader markets also traded higher with the Nifty Midcap 100 and Smallcap 100 indices gaining 1 percent and 2 percent.

After yet another encouraging week, the momentum is expected to continue along with some volatility in the holiday-shortened week beginning April 10 with focus on corporate earnings, inflation data, global news flows, and FOMC minutes, experts said. 

1) Corporate Earnings

The corporate earnings season for the March FY23 quarter will be kicked off by index heavyweights Infosys on April 13, Tata Consultancy Services on April 12, and HDFC Bank on April 15.

2) CPI Inflation

The consumer price inflation, which measures the change in prices of a basket of goods and services, is likely to drop below the 6 percent mark in March on April 12, with moderation in food inflation, against 6.4 percent in the previous month, while core inflation is likely to be sticky around 5.9-6 percent.

3) US Inflation and FOMC Minutes

On the global front, investors will look for cues from US inflation numbers and FOMC minutes scheduled to be released on April 12. Overall, the inflation is expected to moderate further to around 5.3 percent in March against 6 percent in the previous month, while the core inflation is likely to be steady at around 5.5 percent, as per the forecast available on Trading Economics.

4) Global Economic Data Points

5) FII Flow

The consistent FII inflow due to the falling US dollar index and bond yields also aided the markets and experts believe the flow is expected to continue given the hope that Federal Reserve may consider a pause in interest rate hike cycle sooner than later.

6) Oil Prices

Crude oil prices reached to a month's high, with international benchmark Brent crude futures rising to over $85 a barrel, from $79.77 on a week-on-week basis and WTI crude climbing from $75.67 to $80.46 a barrel in the same period, after a surprise OPEC+ output cuts and more-than-expected draw in US oil stocks. But the gains were capped towards the end of week after the weak US economic data raised fears over demand outlook.

7) Technical View

The Nifty has formed bullish candlestick pattern on the weekly scale, with making higher top higher bottom for second consecutive week, and the momentum indicator RSI (relative strength index) giving a nice positive crossover. Also the index climbed back above the 50-week EMA (exponential moving average - 17,426), which is another positive sign.

8) F&O Cues

The weekly Option data indicated that the 17,600 is expected to be a crucial level for the next direction of Nifty50, where we have seen maximum Call as well as Put open interest. Further, the index may find strong resistance around 17,600-17,800 area, whereas 17,500 is expected to be near-term support followed by crucial support at 17,000 levels.

9) India VIX

The volatility cooled down considerably in the last couple of weeks, with the India VIX fell by 8.8 percent for the passing week to 11.79, the lowest weekly closing level since July 2021, from 12.93 levels last week.

10) Corporate Action

Schaeffler India, Britannia Industries, Varun Beverages, Visaka Industries, Edelweiss Financial Services, and Goodluck India will trade ex-dividend, while Emami will turn ex-buyback in the coming week.

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Nifty closes above 18,600 for the first time, next hurdle 18,700

The Nifty hit another high to close above 18,600 for the first time on November 29, extending the uptrend to the sixth consecutive session supported by positive global cues and buying in FMCG, metal and pharma stocks.

The Bank Nifty opened lower at 42,959, which was also the day's low. After some volatile moves, the index closed 33 points higher at 43,053. The banking index formed a small-bodied bullish candle on daily frame with a bigger upper shadow. It has to hold above 42,750 to make an up move towards 43,339 and 43,500, whereas supports are placed at 42,750 and 42,500 levels, Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said.

The broader market, however, saw profit booking, with the Nifty midcap 50, midcap 100 and smallcap 100 indices declining half a percent each. On the options front, the maximum Call open interest was at 19,000 strike followed by 20,000 strike, with Call writing at 18,800 strike then 18,700 strike. The maximum Put open interest was seen at 18,000 strike followed by 17,000 strike, with Put writing at 18,600 strike then 18,500 strike.

After opening flat at 18,552, which was also the day's low, the index traded higher for the rest of the day. It hit a new high of 18,678 and closed 55 points higher than the previous day at 18,618. The index has formed a bullish candle on the daily charts, making higher highs for the fifth straight session.

"The market is consistently holding higher high and higher low formation which is broadly positive. Hence the support has now shifted to 18,550 from 18,450," Shrikant Chouhan, Head of Equity Research ( Retail) at Kotak Securities said.
As long as the index trades above 18,550, the uptrend will continue. The market can move to 18,750-18,800, the expert said.

The data indicates that in near term, the Nifty may trade in range of 18,400 to 18,800. India VIX was up by 0.36 percent to 13.62 levels, but overall it has been cooling off for the last nine weeks and supporting the bulls.

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