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    Dalal Street Investment Journal - October 24 2022

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    Dalal Street Investment Journal - October 24 2022

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    Dalal Street Investment Journal - October 24 2022

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    INDIA'S NO.1 INVESTMENT MAGAZINE SINCE 1986 DALAL STREET INVESTMENTJOURNAL DEMOCRATIZING WEALTH Sea Cece eee ee eC) Cover Story Bae Nar) We Pet rg Visit https://www. fror ‘com/doar Telegram nts a i Personalinanc fe investing practices. ANAND RATHI WEALTH LIMITED (Formerly known as Anand Rathi Wealth Services Limited) Registered Office - Express Zone, A Wing. 10th Floor, Western Express Highway, Goregaon (F), Mumbai - 409 063, Manarachtra CCN : U67120MH1995PL.C086696, Website www.anandrathiwealth. ia 4 > CED | | EE Dd Share y EXTRACT OF STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2022 (in VR Lakhsexcet 5) aif veor Ended | Year Ende Sees Boss | Seer te 0, os | agszr7s | s17ast | Prot before Tox 5753.37 2 | aiiz05 | 1.08529 | 074s | 1676137 rote Tox 4205.8 | 997139 | 300s | 020037 | omez | 1267000 Total omerehenive lncorveerthe percd/vear | 426477 | 3.93401 | 3sa.aa | goe7e | 6aa012 | s2.68801 Icomprnng aott or te era | otsercompeshenve some te 3) | = a Pid -up cata face vive of S/-rachfaly pad | anaaai | ponoai | ape | 20naai | 21 208081 Eanicg per hare face wive ct Re S/n? ‘ear Ended SOS EORE | 0.067022 Sa09.202z | 3008-2025 | SOS I0RT (Unaudited) | Unaudted)| (Unaueted)| (Unsudred) | [Aveitec) | Teme Hom Opes waar | wz7e7e | garam | 50036 | 192767 | 10.368 Pro Before Tax 370690 | 525032 | apva.is | 1096122 | 7ses40 | 1659545 Prof Aer ae ‘a2ea.17 | ssa70r | 3oisa5 | s210ie| sssaar | 12503 Date: Ocobera5, 2722 Place: Mumbai Pt Anand Rath Chairman & Non bxeevive rector Thank You! Today, we take this opportunity to ‘Thank all our Clients, Investors and our Employees for being a part of our suecess journey. ANANDRATHI Private Wealth, uncomplicated sonalWimaroeandrathiwealth. in Scan to rea CONTENTS ce Meal 20) aan Hor vee”. Pepedit met VET Cee Os eet Higher Next Diwali! Regulars 06 Editor's Keyboard 67 Company Index 08 Market Watch 14 Technicals 41 Commodity Market Watch 3 42 Global Market Watch Recommendations 43° QueryBoard 10 12 13 ae Choice Scrip Low Priced Scrip Hot Chips Brat ete ec reeset ceca g Ree cy Bees era website www.DSU.in Analysis INDUSIND BANK Reeth ora) veer ta rer ett ee tO) ‘Communication Feature sections Pioneering Efforts Pave The Way are advertorials provided by the For Good Growth ‘company & carried on “as is” basis. 4 DALAL STREET MVESTMENT JOURNAL I OCI 24 NOV 00,2022 betiin © NSE uae ‘Samajh kar Invest kar Always stay alert & do not fall for misleading promises of guaranteed returns Returns in securities market are subject to market risks. £"Unknown No one can guarantee it. Yo Any promise of guaranteed = Raa a a returns in securities market is °-/ een th te prohibited by law, Guaranteed monthly en a) Any investment in such schemes are not eligible for Roar compensation from the Se Cr atc Exchange. You may report such practices to us on Feedbk_invg@nse.co.in, or call us on 1800 22 0059 For more details visit www.nseindia.com Sourced from © 9. & ~ @indianPersonalFinance 9 Pharmaceutical Sector and China One Plus Story BORN AA Novo a2 ‘Yur cover story inthe previous issue meticulously explained the secirs thet Stand tone frst crayging Chins Pls Oncatory Cas you shed some rete Cop ttos : ; ae oruein ight on whether the domestic pharmaceutical sector wal als gah from this Vis ance strategy? ‘Ayansh ManagingDircr 8 THor one Contacor oe Graplio, Editar Responds: Thank you for your povosmraging wens: "The China Plas On sear veep eta ole ey ice por ee ects cciteal cog eeceier Subscription CatamerSerice favourable factors of production, conducive business environment and parce thao Inentivsed government polkic. To take advantage ofthis opportuniy and aoa coeweee becomtea vb alerativete China, pharmaceutical males ee becoming ote Footed eae ‘aggressive with new produc Inches expansin of copadtes and heavy capex ety beh plc Bevisrs head cont avg da lignes ta onlr tL Ba bet ae Sonoo Tear. Mnagr sch specific opportunities nthe sect, Keep wing tous Happy investing! Sinn Chom Doma Epes Shoe Baha ent Bagh ‘Arman Mahan iyedtDadia R id ti tance faranes ‘eCO n mendations I ES ° By 165.70 Choice Scrip 10 © by 7675 uaybord ak © Aid 26740 Queyboad 4B DSIJ Private Limited Suess By 121010 Teas 5 8 Britannia Industries ° By 3796.25 Cove Story 2 Eocene Gh © By 1108.90 Cover Story. 2B B020-66663603 OR service@DSIhin ‘Container Corporation Of dia ® Hold 707.60 Queryboad 45 Deepak Fertilisers & Petra. Corp @ Buy 965.70 Technicals 5 Mamta Oe 419-A.4th Hor, Arun Chambers, Tardeo, Next to AC Market ‘Se Exipments oy 4325 Kensie am Sant abose moa erase Fltexinia = 975 lowes 12 ‘Fine Organic industries. ° By 6900.00 Kerbside 47 ane oie (fice No.211, Vacon Planum uae, Gillette india © told ‘5114.15 Reviews 46 Netto. Vian Nar Pane 410} Codey Prissy 14205 fee a ‘B 010-66663-800/801 Gujarat Alkalies AndChemicals © Buy 885.00 Cover Story ri) ‘Hf Bank © By 1433.00 Cove Story. 30 ‘Hindustan Aeronautics: © By B37.00 Cover Story vu DFC Fit an = By 430 ersoy = Indiabulls Housing France = ‘Held 10445 Reviews 46 Pst and ber Nea Sevan lr: Rash Pad STEW iatculetAticencssNechnieePata Peseta Poneae anak * By 26565. HotOhos B ‘Issues (1) Pvt. Lid, EL-179, TIC Industrial Area, Electronic Zone, Near. ndusiné Bank ° By 123.20 Analysis 16 ET eee: eka * oy 4425 Cove Stoy 3 et ehh Bch eee SE ee ‘International Travel House ° By 221.10 Queryboad 45 [peter Safin pelowyefelaeeires DablSteinvestnet ournlbds to reponeisayor any emcee tat NOR Aceses Buy 29.70 Corr toy 4 Giese tise me cae reudtoguemia ce ‘Halpataru Power Transmission © Buy 43.20 Hots: B Sat einen gee moa yA a a 6730 CowsSoy 5 ere iain sal Stee ir ole spony im NHPC = a i 2.00 ee 4 Sees ate tle ae 310075 Query “4 heleor pet wllon iter cones us Dat Suet aed wa The PEDIC ° By BEES Cove toy 36 Nee Crates eee ouceeveomeemt oct SiaWaddahs iene: Nie Mi 220 Lae a DEABCe BP - Book Profit «BPP - Book Partial Profits «BL - Book Loss sau sana fr tngen hen QRASAADAENGA 2012 | DALALSTREETINVESTHMENTOUMNAL 7 This Diwali Let the Lights Shine Brighter! Jot has happened since last Diwali that has led to the underperformance of the equity ‘market globally. Infact, the equity market is yet to touch the level that we traded at last Diwali. The uncertain characteristics of the economy were misread by even the battery ‘of experts from Ivy League. It reminds me of a quote of Israeli-American psychologist Daniel Kahneman who said, “We are prone to overestimate how much we understand about the world. and to underestimate the role of chance in events. We can be blind to the obvious and we are also blind to our blindness,” So, inhhindsight it seems that the central banks waited too long to act and irrationally allowed the proverbial inflation genie out of the bottle when the inflationary curve started to rise in May 2021 ‘This led the central banks to raise rates at the fastest pace in recent history. ‘The problem with such hikes is that it tends to disrupt the financial markets and economy. We are already witnessing the impact ofthis in other markets such as bond and currency that have become quite volatile. Governments have had to take a U-turn on their policy decision to pacify the market. Therefore, volatility is hereto persist for a while now. Nevertheless, in all this volatility, the Indian equity market remains an oasis of hope. Most of the ‘malice presenti the financial market elsewhere has not impacted us much and we have remained resilient. The Indian equity market has outperformed most of the emerging as well as developed ‘markets in the last one year. This Diwali can be one of the best times in recent years to buy equities because the mood is that of cautious optimism and the valuations are reasonable, thus providing a better margin of safety. Our cover story titled “Top Diwali Picks’ in the current issue discusses market performance over the past one year and throws some light on which sectors to focus on in the coming Years, The best part of the cover storys our selection of stocks. The Diwali portfolio at DSI} hasa tradition ofbeating the ‘markets consistently and we ae fairly confident that this postfolio will also bea step ahead of the ‘markets and win with flying colours. Meanwhile, the textile sector has been quietly consolidating and ‘making its presence felt in the global markets. Our special story in this issue talks about the textile sector in India and discusses at length the ‘opportunities and threats that lie therein, Hluge opportunities exist in the textile sector and investors should benefit from the natural advantages the sector presents. The best way to create wealth in the stock market isto focuson sectors where maximum capital expansion is taking place. Also itis always profitable to remain invested in stocks or sectors where the earnings growth is most promising, consistent and visible. The next 12 months are undoubtedly going to be thrilling for each of usas the prominence of India grows globally. Some of the biggest money-making ideas will be churned in the next few years by the equity markets in India, My sense is that untiland unless any other ugly skeleton does not come out of the closet such as the collapse of any major institution, we may see Nifty well aver 20,000 by next Diwali So here is wishing you and your family a very Happy and Prosperous Diwali. For now, the dark shadows of the pandemic are behind usand it i therefore time wo rejoice! es if it fob RAJESH V PADODE Managing Director & Ector Sourced from Telegram Channel - @IndianPersonalFinance Market Watch " Hopes Pinned On The oe Festive Season ere eR US CUT WEE CUT n September 202, Indsannual_.| numbers, MCG aso has seen 20.49 per MURUSSQOLUT 300 Wholesle price ination fate "| cent dip in thelast ornightand closed i deceaed fom 2ATpereentto | staleelatl577s01 on Oceber a. BUSA UCU sores ct wndensinating Sales cents adsuen percent MUR RCM a Thawaclelowetredigstnee | conscunsquetal dean he past PUT ALTE cE) September 2021, Onamonthiybasi,__| three months choles prices dropped moreby 065 Oe ance per centat the end of September after a_| In the festival run up to Diwali, hit Seer eae ne nae | nee cts eI UTED Sensex dosed higher by 1,168 points at | which will result instrongergrowth in |) )) ler] Ie) U0 the 57,919.97 level on Friday, October October. The healthcare sector also 14 recovering from the sharp slingin | closed onthe lowersideon October 4. LELCUICAC LIL) the last fortnight with strong support and was down by 069 per cent at the from echnolgy harcrand bude The || 2998089tre Forth benking coor MAMA CLG power ministry said itis takinginitiatives | Prime Minister Narendra Modi has investors (FPIs) sold shares worth Tprintegration oftonfosl fud energy | Inunched 75 dgitalbanking units across | €897826 crore while domestic byimplementaten ofareen energy” | 75 dstict wih the intention to promote | institaonal iveston (Dll) were nt corridors. financial inclusion and to offer real-time | buyersto the tune of Rs 8,055.05 crore unto ca rettte Cations Inthe inden eqty market inthe past ‘As such, the power sector saw a fall of grievances. The foreign portfolio 15 days. 3 0.17 per cent o a level of 4,603.12 points. ‘Therealty sector, on the other hand, rose by 0.16 per cent to end last week atthe 3,346.22 mark, During the September ‘quarter, passenger vehicle salesincreased by 38 per cent to 1,026,309 units as against 741,442 units in the similar period of the ast fiscal. The automobile sector saw an increase of just 0.01 per cent in the last fortnight and traded at a level of 28,595.49 points. Moody's, the global leading rating agency, said the increase in crude prices will weaken. Indian oil companies if net realisation dorit goup. The oil and gas index has seen a significant drop of 1.52 per cent ons eT rT tnadcosed atthe 18,001 19love mars Cee tise tak 8 won 02 12413 ‘The metal segment has also seen'a boom oer ‘api 460312 “017 by more than 4.5 per cent and dosed at ety 33000 3346226 Bo “153643 wa z Ch Alsen oy ho aso swe Onn nen 30% BR Belen oolet- Ase in bees oikas ao ons a3 nea ans 0% surged ta record in October nthe kas uxt one Ag immediate aftermath of Russia’ attack Se toat2e 213802 2asTa and rise of corona virus cases in some Micay 35558 2470386063 rocz ann 5.5 tities in China The TT sectorhasscena | Saux ILS S13157 206 soc mo 8 surge by more than 4 percent and sons 460m san ius a2 reached a level of 28,338.37. IT. ees teeeees oie 30022 59058. O36 ; Sue S7AML 48 companies in HIFY23 have seen IT rain Pen ees 08 Mec fresher hiring exceeding the HIFY22 ner 37S age? 36h ‘Sourced from Telegram Channel - @IndianPersonalFinance —_DALALerneer MvesTMENT JOURNAL 1 Cr 2. SINCE 1986 ITS 3 IMSS CHOOSE A PRODUCT AS PER YOUR INVESTMENT PLAN ee MID BRIDGE TREASUNY ee LargeRhino TIS MICANHS Blue Chips Best Mid Cap Best Small Stocks Stocks Cap Stocks A Best Long term Long Term Stock Contrarian stocks to TNS tant 1 ad Stocks invest for Growth Value based er MULTIBABGER PIGK Multibagger Stocks See OREN NTH GIVE A MISSED CALL ON 02066663882 INVESTMENT ADVISOR SEB! (REGISTRATION NO. NADOOOOTI42) | RESEARCH ANALYST SEBI (REGISTRATION NO. INHOOO006396) pela B WWW.DSIJ.IN *For visual representation purpose only Recommendations Angel One Ltd CASHING IN ON AN UNTAPPED MARKET ndias broker market is growing ata CAGRof 8 per cent. While more than 55 percentof the population inthe US investin stock markets, the figure for India isat a mere? per cent. There isz huge gap which presents tremendous potential for the Indian financial brokerage industry. In thisdomain a quality and strong business entity is Angel One. Angel One Lid. isa diversified financial services firm that specialises in stock, commodity and currency brokerage as well 2s institutional broking, margin trading facility provsion, depository services, distribution of mutual funds lending asa non-bank financial company (NBFC) and corporate agents of insurance companies. In the Indian capital markets, Angel One ie ‘one ofthe strongest lat fee players on the sectlar growth story. With largest and most exctusive network of almost 18,000 authorised persons registered with the NSE, thecompany has a revenue sharing, arrangement with these individuals forthe broking and cistrbution business earnings created by clients abtained by these individuals. The FY22 payout to these authorised people of 50 crore was up 51.6 per cent year-over-year, reflecting the increasing customer baie and client at CHOICES 1 YEAR INVESTMENT HORIZON Ee Seo Ta Tre s.a0 988) —4080 TIED Iistowes 3515317 362268 Tes, 08518685 LD woesoenas 3H0K0 719 4m) TH KLek | 580 TSB IB ‘activity shown in robust average daily turnover and a very busy IPO market. The business has formed strategic alliances with and integrated a wide range of third-party software platforms, including Vested, Small Case, Sersibull, Streak, Quicko and Markets Mojo, The ‘company’s revenue has been increasing at aCAGR of 43 per cent during the past three years. The FY22 revenue stands at %2,292 crore. A net profi of 625 crore ‘was realised by the corporation in FY22. As of now, the business enjoys an Equity ‘operating margin of 40 per cent. Inthe second quarter of FY23, powered by record-breaking transactions of retail derivatives, Angel One top-line grew by 36per cent to 717 crore on a sequential basis Given the management’ dedication to growth and investment in new technical expertise, sing payroll expenditure seems inevitable. Profit ater tax increased from €134 crore in Q2PY22 to 3214 crore in Q2FY23 due to sustained client acquisitions, rise in the volume of orders and cost discipline The average funding book for clients of the company increased 108.3 per cent to 81,500 crore in FY22 from 720 crore in FY2I. Given the relatively low penetration of there is still agreat deal of space for additions ‘The return on equity (ROE) for Angel One at the end of FY22 is 46 per cent and return on capital employed (ROCE) is 355 per cent. “The stock is currently trading ata price to earnings ratio of 17.7 times. The company generated 2558 crore in cash from its ‘operations in FY22. Asa resultof the firms solid foundation, it has experienced rapid expansion. The company will soon belaunching its android mobile application in late Q3FY22 named ‘Super ‘Ap! Going ahead, customer additions are expected to revert downwards, thus impacting broking revenues. Nevertheless, company has enough levers to maintain margins by slowing down its morketing spendin a case of slower customer addition environment. ‘Because of the high growth penetration in the Indian financial sector. low substitution effect for Angel One services, strong fundamentals, attractive valuation and promising future, we advise investors toBUY. 3 Promises ees ey 10 Sourced _ islbriiee d a peeseet a cy Last Five Quarters (%/Cr) (Consolidated) eprrenr) ‘ae Ts es) 8S GON SH ones an a x le Mola ac ‘520 tpogPomt «TO 2663) 805 28 eS ee fies nas 1888521 veat 2 IS) BL HEL BU iy B18 8285 8G 8786 BBE JIndianPersonalFinance DALAL STREET INVESTMENTJOURNAL DEMOCRATIZING WEALTH CREATION DALAL Saf SUSIE We are ready to serve you directly with benefits Subscription Benefits , , Magazine Availabilit Seale Team hela aay DSI] Subscribers get to access ema first on the DSI] site and DSI} App. Rea DSU) Subscribers get access to a care ‘ team for any gullance and carly. EEaaea nen = DSI) Subscribers are promptly informed Access to DataBank when to exit a position via SMS, Email : ‘and App Notification DSI] Subscribe iy Hence, access your favourite magazine on DS\J site and DSH App by subscribing with DSIJ directly, Beer) ormation, give a missed call on 02066663889, DO mas FILATEX INDIA LTD. here are some specific factors that help the shares of a company to outperformand one of them is the improving return ratio. Filatex India, engaged in the manufacturing and trading of synthetic yarn and textiles, is ‘witnessing such a trend, The product offering of the company consists of polyester chips, drawn textured yarns, partially oriented yarns, fully drawn yarns, air textured yarns, polypropylene ‘muttifilament crimp yarns and narrow ‘woven fabrics. It also produces some specialty products such as Filigree, Ocean, Chubby Yarn, Cotsion, Soie FIL, Flexi FIL, ete. The production capacity of the company is 400,320 tonnes per annum, Filatex India hasa presence in 45 countries across ive continents. ‘The company has focused on improving its value-added product portfolio in the last 5-6 years. The expansion in drawn. textured yarns and fully drawn yarns production capacities over the years has resulted in an increase in their revenue share as well s improved the blended ‘margins. The company caters to diverse end-users induding home textiles and furnishings, outdoor clothing and athleisure, wide range of apparels, ‘women inner wear and industrial use Cees ees eed source: 12 Recommendations MAINTAINING AN IMPRESSIVE LEAD IN TEXTILES PRICED SCRIP 1 YEAR INVESTMENT HORIZON am ES my tas amt «cases. Despite the lingering effects ofthe pandemic, the company managed t0 achieve anall-time high production volume of 41,480 metric tonnesin FY22, by utilising 100 percentof its yarn capaaty. Initiatives undertaken by the Indian government to boost the textile sector and the release of pent-up demand for textiles have aided this increase. To improve the financial standing of the company, Filatex India decided to use this opportunity to prepay alarge share ofits erm loans, resulting ina reduction ofits debt to equity ratio to 0.33 times Equity from 077 times, Return on equity (ROE) alto improved from 24.43 percentin FY21 to 32.76 per cent in FY22 and return on capital employed (ROCE) improved from 21.01 percentin FY21 to 31.16 per cent in FY22. In view of the company’s strong performance, the Board of Directors approved « buyback offer for an amount of 859.50 crore ‘The Board of Directors also recommended « final dividend of 10 per cent per equity share for FY22. Consistent growth in operating margins along with a focus on long-term debt reduction has resulted in significant {improvement in the company’s interest coverage ratio. The interest coverage ratio increased from 7.73 times in FY21 {024.47 in FY22. Positive ‘macroeconomic factors along with judicious decision-making, prudent strategy and a conscious decision to focus on value-added products have resulted in improving the profitability of the company over the years. ‘The profit after tax was €302.73 crore in FY22 compared to 2165.83 crore in FY21, an increase of 82 percent. ‘The company has generated a profit of 4,152 crore during the course ofthe previous 12 months, The operational ‘margin for the company is 13.9 percent and the net profit margin is 7.9 per cent. ‘The revenue forthe three months ending Juune 2022 increased by 46 percent ‘quarter over quarter to reach 21,023 crore, while the net profit for the quarter totalled 243 crore for the company. The ‘company’s operations broughtin a total (0f304 crore in cash during FY22. The price-to-earnings rato ofthe company at the moment is 7.68 times, Due to its strong fundamentals, improved performance and positive future ovtlook, ‘We recommend BUY. a CORNET SY OT STOTT SCTE Se coo Yolmne—I0375 eNO TO 8S BRST ammes = ‘Other Income 659 193 1195 678 156 ni 50 pata 8) 8} TIMID A re Soe goeet so sto tt eo) 100 Kero OSSD «ty 6m 50 40 6m 50 _ ety Teel, = @indianPersonalFinance INDIAN BANK BSECODE | Volume Face Value 532814 200,780 710 | T[odian Bank is amedium-sized bank offering deposits, loans and services. | Die bankssegmentsinclade treasury, conporate and wholesale banking, retail banking and other banking operations. In QUFY23, the interest earned improved from ¥9,625.82 crore to 810,165.86 crore. ‘Other income contracted from 21,926.78 ‘rorein QUFY22 to®1,731.67 crore in ‘QLFY23. On the contrary. net profit | zoomed 54 per cent, reporting at 11,355.59 crore compared 10887645 | crore. "The company’s gross NPAshave decreased to 8.13 per cent from 9.70 per cent in QIFY23 whereas capital adequacy ratio, which ensures the lowering of risk of banks becoming insolvent, has improved ‘0 168 per cent. Advances have grown 9.1 per cent on a YoY basis whereas deposits zoomed 82 per cent with an 8 per cent in current and savings account ratio (CASA). The bankhhas reported a ‘The scrips in this columa have been | recommended with a 15-day investment horizon in mind and KALPATARU POWER TRANSMISSION LTD. carry high risk. Therefore, BSECODE | Volume Face Value 522287 7,275 2 investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the | recommendations eee em Ota eer) Sourced from Telegram Channel - @IndianPersonalFinance MP -2215.65, Target Stoploss 221-232 %188(CLS) ee enor Some t) La Volume Town ser) 1.009002 1931 13.00.02 3s 1600.02 s6 v-0¢am2 08 00am 20070 healthy operational performanceand also has witnessed improvement in asset quality. Hence, we recommend BUY. cmp -2433.20 Tareet Stoploss, 465-480 *404 (CLS) alpataru Power Transmission Ltd. isa global EPC player with liversified interest in power transmission ang distribution, oil and ‘gas pipeline, railwaysand biomass-based power generation. The company reported good consolidated quarterly ‘numbers for June 2022 with net sales at 33,677 crore, up by 14.76 per cent from 33,204 crores of June 2021. The quarterly net profit marginally increased by 1.15 percent wo 888 crore from 887 crore inthe same quarter ofthe last fiscal. The operating profit improved 2.81 percent to 8329 crore for the Jane 2022 quarter from 2320 crore for the June 2021 quarter. The margins were impacted by higher commodity prizes and freight costs. The company hasseen strong order inflows led by order wins in space. The new order pipelines expected n the coming quarters, Hence, we recom 3 (Ching price as of Oct. 18,2022) 13 Recommendations NIFTY Index Chart Analysis MARKETS CONTINUE TO BE IN A STATE OF CONSOLIDATION Equity he global tremors are becom- increasingly violent. Tere have been consistent cases of being up one day and down the other with bg swings. Gap ‘opening and intraday recoveries have become habitual for the equity markets After the US CPI data announcement, the Dow index opened sharply lowerand recovered 1.400 points from the opening Towson Thursday. This has influenced the Indian market to recover the losses atthe weekend on Friday. As the benchmark index recovered over percentage points, the Nifty has formed an inside bar on the ‘weekly chart, Otherwise, it would have been a negative candle Roadmap for the Next 15 Days ‘oer en pean Pea icicle tenoien rep COeoeelaeh 7 MICE ys sevmeroereamemn wne-iuxn amsobiontescinma diets agg tion. Consolidationis going on between the long-term 200 DMA and the short-term average 50 DMA. The inside bar and the narrowing Bollinger bands suggest that the consolidation may continue for some more time. The high of | October 6isa minor swing, which is also | resistance point, Above this the 50 DMA of 17,491 is the next level of | resistance. A decisive lose above this Interestingly, on Friday, the index opened above the 20 DMA but failed to sustain above the important moving average. It ‘opened with an over 300-pcint positive ‘gap before closing with gain of I per cent, but it declined over 150 points from the day's high. Atthe beginning ofthe current week, the Nifly opened flat to negative bbut closed above the key moving averages ‘on apositive note. Thiskind of volatility has triggered stop losses on both the sides, ‘On the other side, the gap openings have hit the positional traders quite hard ‘Technically there is no change in the direction. ‘Themarket isstillin a tate of consolida- 14 zone: crucial for turning ona bullish | bias. At the same time, there are no | positive divergences established yet in any of theleading indicators. | ‘The Anchored VWAP acted asa support | for the week. The Relative Strength Index | continues o be at 50 and in a neuteal zone.'The MACD line isbelow the zero | line. The negative directional indicator, DMB is currently dominating, and the ADXis almost lat for now. In thenear to medium term the 200 DMA of 16988 and the 200 EMA of 16,908 vill proveto bea |

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