Nifty 17026.45 (-2.91%)
Sensex 57107.15 (-2.87%)
Nifty Bank 36025.5 (-3.58%)
Nifty IT 34606.1 (-1.97%)
Nifty Financial Services 17614.7 (-3.56%)
Adani Ports 717.15 (-5.94%)
Asian Paints 3143.10 (-0.04%)
Axis Bank 661.75 (-2.67%)
B P C L 376.85 (-5.81%)
Bajaj Auto 3334.60 (-1.68%)
Bajaj Finance 6807.05 (-4.47%)
Bajaj Finserv 16682.55 (-3.95%)
Bharti Airtel 738.75 (-3.45%)
Britannia Inds. 3555.30 (-0.51%)
Cipla 966.70 (7.42%)
Coal India 155.90 (-1.67%)
Divis Lab. 4937.80 (2.88%)
Dr Reddys Labs 4750.90 (3.47%)
Eicher Motors 2433.90 (-3.43%)
Grasim Inds 1690.10 (-4.34%)
H D F C 2741.70 (-4.40%)
HCL Technologies 1110.05 (-1.31%)
HDFC Bank 1489.90 (-2.36%)
HDFC Life Insur. 670.65 (-2.64%)
Hero Motocorp 2529.40 (-2.52%)
Hind. Unilever 2335.10 (-0.59%)
Hindalco Inds. 417.00 (-6.72%)
I O C L 120.95 (-3.74%)
ICICI Bank 722.20 (-3.84%)
IndusInd Bank 901.80 (-5.99%)
Infosys 1691.65 (-1.79%)
ITC 224.00 (-3.16%)
JSW Steel 628.65 (-7.67%)
Kotak Mah. Bank 1964.30 (-3.48%)
Larsen & Toubro 1778.15 (-3.88%)
M & M 853.75 (-4.20%)
Maruti Suzuki 7170.50 (-5.31%)
Nestle India 19222.25 (0.23%)
NTPC 128.85 (-4.70%)
O N G C 147.10 (-5.16%)
Power Grid Corpn 202.00 (-1.10%)
Reliance Industr 2412.60 (-3.22%)
SBI Life Insuran 1130.35 (-2.51%)
Shree Cement 25945.80 (-2.72%)
St Bk of India 470.50 (-4.09%)
Sun Pharma.Inds. 767.30 (-1.99%)
Tata Consumer 766.70 (-5.09%)
Tata Motors 460.20 (-6.61%)
Tata Steel 1112.30 (-5.23%)
TCS 3446.85 (0.03%)
Tech Mahindra 1527.40 (-2.05%)
Titan Company 2292.30 (-4.40%)
UltraTech Cem. 7394.75 (-2.81%)
UPL 703.80 (-3.23%)
Wipro 621.45 (-2.40%)

How to trade the USDINR when the rupee is at Rs.73.448/$?

How to trade in USD INR
by 5paisa Research Team 14/09/2021

Currency traders are likely to be a harried lot in the last month or so. The rupee had weakened to about Rs.74.60/$ just a month ago. However, there was a rapid bout of strengthening of the rupee all the way to Rs.72.90/$ before the rupee has once gain weakened to Rs.73.448 as of 15-Sep. The question is; what should currency futures traders do in this kind of volatile currency situation.

Let us first understand the story behind this volatility. Towards the middle of August, it was becoming increasingly clear that the US may consider taper later this year but rate hikes were ruled out. This led to a fall in US bond  yields while the yields in India remained elevated at around 6.2% against 1.27% for the US. This wide rate gap was an incentive for debt flows into India, which strengthened the INR.

However, the Indian economy cannot support a very strong rupee as the fiscal deficit is still high at around 6.8% of GDP and the government borrowings are at an all-time high level. The RBI also would not be too keen to let the rupee strengthen as it would hit the competitiveness of Indian exports.

How to trade this rupee story?

For now it looks like a broadly range-bound trade. The INR could be rangebound for now in the range of Rs.72.80/$ on the stronger side and around 74.20/$ on the weaker side. Around the levels of Rs.74/$, it would be ripe to sell the USDINR as the huge rate differential between Indian benchmark bonds and US benchmark bonds would strengthen the rupee with heavy debt market flows.

However, at below Rs.72.90, it would be a good scenario to go long on the USDINR since the steep fiscal deficit and high borrowing pressure of the government would be key factors weakening the rupee. It is the time for a range-bound trade on the rupee. Of course, since there are multiple factors impacting the rupee/dollar equation, it would be advisable to trade with a stop loss. 

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Shree Cements Plans Mega Capacity Expansion

Shree Cements Plans Mega Capacity Expansion
by 5paisa Research Team 14/09/2021

Shree Cements plans to invest a sum of Rs.4,750 crore on expanding its capacity across various products as well as in setting up a captive solar plant. Out of the total outlay of Rs.4,750 crore, a sum of Rs.3,500 crore will go towards enhancing cement capacity, Rs.500 crore towards setting up a state-of-the-art solar power and Rs.700 crore towards its clinker manufacturing capacity.

The integrated cement plant will be set up in Nawalgarh in Rajasthan. The Rs.3,500 crore allocation will be towards cement capacity of 3.50 million tonnes per annum (MTPA). This is higher than its current average capital cost. Shree Cements currently has total cement capacity of 43.40 MTPA and it operates at 67% capacity utilization. 

Shree Cements is the second largest cement player in India after Ultratech. Shree Cements had reported 90% yoy growth in profits in the Jun-21 quarter but the profits had been lower on a sequential basis. That had impacted the sentiments around the stock, but the latest expansion plan has come as a positive for the stock.

The plant will also have a clinker capacity of 3.80 MTPA. The plant is expected to be ready for operation by the end of fiscal year 2023-24. In addition, to tap the huge demand-supply gap in East India, Shree Cements East Private Limited will set up a clinker grinding unit in the Purulia district in West Bengal.

The solar power plant will have a capacity of 106 MW and will supply power to the various plants of Shree Cements. Most cement stocks have rallied sharply as infrastructure demand for cement has been robust and housing demand is expected to pick up in next few quarters. After a very long time, the bargaining power is back with cement manufacturers and they have been able to pass on the spike in input costs to the end customer. That is evident from the recent spike in cement prices.

Also Read: Are Cement Prices Improving?

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

What You Need to Know About the Natural Gas Price Rally

Natural Gas Price Rally
by 5paisa Research Team 15/09/2021

The US markets have seen a phenomenal rally in natural gas prices. Just to get a heads up, the price of natural gas on the bourses has moved up from $3/NTG to $5.49/NTG since the beginning of May 2021. In other words, gas prices have rallied by over 80% in the last 4 months. Here is a quick look at the reasons for this really and what it holds for the future of natural gas trading.


•    The biggest reason for the massive rally was the short squeeze in natural gas in the global market. For example, the CFTC report on open positions had indicated heavy shorts built up in natural gas contracts. This was on expectations of a sharp fall in the price of natural gas.

•    However, what transpired was exactly the opposite. An unusually hot summer in the US led to a surge in demand for natural gas for cooling support. The shorts soon found that there was nobody left to sell and the prices were moving higher. This led to a rush to cover shorts and the short squeeze triggered the sharp spike in natural gas prices.

•    If hot weather was a major factor, the other key factor was Hurricane Ida which resulted in a spurt in demand for natural gas. However, the short covering rally may have played out if you consider the bounce. Also, for the rally to continue, this year’s winter must be exceptionally cold so natural gas demand remains buoyant for heating needs.

•    Many of the traders who shorted natural gas in the range of $3.20 to $3.50 found themselves running out of margin power by the time natural gas crossed $4.00. That resulted in the massive squeeze.

•    The bottom line is that natural gas could become a lot more expensive before it sees a fall. The best approach would be to wait for the markets to get overbought and then look to sell Natural Gas futures in the market. The Indian natural gas contracts more or less mirrors the global price. 
 

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Sansera Engineering IPO Day-3 Subscription

Sansera Engineering IPO Day-3 Subscription
by 5paisa Research Team 15/09/2021

The Rs.1,282.98 crore IPO of Sansera Engineering, consisting entirely of an offer for sale (OFS), had been fully subscribed on Day-2 itself. As per the combined bid details put out by the BSE at the close of Day-3 of the issue, Sansera Engineering IPO was subscribed 11.47X overall, with bulk of the demand coming from the QIB segment. 

As of close of 16th September, out of the 121.09 lakh shares on offer in the IPO, Sansera Engineering saw bids for 1,388.39 lakh shares. This implies an overall subscription of 11.47X. The granular break-up of subscriptions were tilted in favour of QIB investors followed by HNI investors and retail investors.

 

Sansera Engineering IPO Subscription Status - Day 3

Category

Subscription Status
Qualified Institutional (QIB) 26.47 Times
Non-Institutional (NII) 11.37 Times
Retail Individual 3.15 Times
Employee 1.37 Times
Total 11.47 Times

 

QIB Portion

The QIB portion was subscribed 26.47 times at the close of Day-3. On 13 September, Sansera Engineering did an anchor placement of Rs.382.05 crore to QIB investors including a number of marquee names like Government of Singapore, Monetary Authority of Singapore, Nomura, Abu Dhabi Investment Authority, Axis MF, ICICI Prudential MF, SBI Life, Max India Life, Kuber India Fund etc. The QIB portion (net of anchor allocation) has a quota of 34.23 lakh shares of which it has got bids for 906.15 lakh shares, implying a subscription ratio of 26.47X for QIBs at the close of Day-3. Most QIB bids came in on the last day.

HNI Portion

The HNI portion got subscribed 11.37X (getting applications for 291.95 lakh shares against the quota of 25.68 lakh shares). Bulk of the funded applications and corporate applications, came in on the last day of the issue on Thursday.

Retail Individuals

The retail portion was subscribed 3.15X at the end of Day-3, showing healthy retail appetite. For retail investors; out of the 59.91 lakh shares on offer, valid bids were received for 188.55 lakh shares, of which bids for 146.90 lakh shares were at the cut-off price. The IPO is priced in the band of (Rs.734-Rs744) and the IPO has closed for subscription on 16th September.
 

Also Read: 

Sansera Engineering IPO - 7 Things to Know

Upcoming IPOs in 2021

IPOs in September

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

5 Stocks to Buy Today: September 16, 2021

5 Stocks to Buy Today
by 5paisa Research Team 15/09/2021

Every morning our analysts scan through the markets universe and chose the best momentum stocks to buy today. The stocks are recommended from a wider list of momentum stocks and only the best ones make it to the top 5 list. We also update on the performance of earlier recommendation every morning to help you with your trading journey. Read on to know the momentum stocks to buy today. The average holding period could be between 7-10 days on average.

List of 5 Stocks to Buy Today

1. Cyient Ltd (CYIENT)

 

Cyient Stock Details for Today: 

- Current Market Price: Rs.1,111

- Stop Loss: Rs.1,060

- Target 1: Rs. 1,200

- Holding Period: 1 week

5paisa Recommendation: Our technical analysts observe a breakout in this stock and our experts expect the uptrend to continue today as well.. 

 

2. Bharti Airtel (BHARTIARTL)

 

Bharti Airtel Stock Details for Today: 

- Current Market Price: Rs. 726

- Stop Loss: Rs. 711

- Target 1: Rs. 740

- Target 2: Rs. 756

- Holding Period: 1 Week

5paisa Recommendation: Our technical analysts observe that further buying in this stock to continue today as well.

 

3. Easy Trip (EASEMYTRIP)

 

Easy Trip Stock Details for Today: 

- Current Market Price: Rs. 542

- Stop Loss: Rs. 531

- Target 1: Rs. 565

- Holding Period: 1 Week

5paisa Recommendation: Our technical analysts observe that uptrend in the stock is likely to continue.

 

4. Supreme Industries (SUPREMEIND)

 

Supreme Industries Stock Details for Today: 

- Current Market Price: Rs. 2,259

- Stop Loss: Rs. 2,210

- Target 1: Rs. 2,370

- Holding Period: 1 Week

5paisa Recommendation: Strong volumes indicate this is likely to be a coveted stock, thus making it to the top stocks to buy list.

 

5. Birlasoft Ltd (BSOFT)

 

Birlasoft Stock Details for Today: 

- Current Market Price: Rs. 426

- Stop Loss: Rs. 415

- Target 1: Rs. 450

- Holding Period: 1 Week

5paisa Recommendation:  Our technical analysts observe the end of sideway trend.  Thus making stock as one of our strongest recommended Stocks to Buy Today.

 

Share Market Today

SGX NIFTY: 

SGX Nifty indicates positive opening for Indian markets. SGX Nifty is at 17,521.20 levels, higher 134.25 points. (Updated at 7:55 AM).

International Markets:

US Market: US markets ended with gains as energy stocks lead the gainers with oil prices at 3-month highs.

Bond yields trade near 1.29% even as US$ sees initial weakness being bought into the US sees high. Higher tax proposal gets go-ahead from White House which could see higher volatility in the near future.

Asian Market: Asian markets opened muted with the Japanese 'Nikkei' trading almost flat as markets consolidated after a superb last fortnight.

Higher ETF flows have been the elixir for Asian markets with money seeing a move from developed to emerging markets.

Chinese stocks have lagged behind the Asian peers as Government policy on the internet/fintech sees foreign funds turn sellers.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

BTST Trading Tips for Today: 16th September, 2021

BTST Trading Tips for Today: 16th September, 2021
16/09/2021

5paisa analysts bring the best intraday ideas, short-term ideas and long-term ideas for you. In the morning we provide best momentum stocks to buy today, while in the last trading hour we provide buy today sell tomorrow (BTST) ideas.

BTST Trading Ideas for Today

1. KOTAKBANK SEP FUT 

- Current Market Price: Rs.1,901

- Stop Loss: Rs.1,890

- Target: Rs.1,926

 

2. BIOCON

- Current Market Price: Rs.373.5

- Stop Loss: Rs.371

- Target: Rs.382

 

3. ICICIBANK

- Current Market Price: Rs.726

- Stop Loss: Rs.722

- Target: Rs.737

 

4. HDFC SEP FUT

- Current Market Price: Rs.2,822

- Stop Loss: Rs.2,810

- Target: Rs.2,850

 

5. DCAL (Dishman Carbogen)

- Current Market Price: Rs.220

- Stop Loss: Rs.217

- Target: Rs.228

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order