April 2022 – Eqwires Best Intraday tips provider in India, top trading tips company, Best Stock Advisory service in India

Rakesh Jhunjhunwala may have sold his stake in agriculture machinery manufacturer Escorts. Often called the Big Bull of Dalal Street, Rakesh Jhunjhunwala’s name is absent from the latest shareholding pattern of Escorts, which was uploaded on the BSE website a few days ago. However, it is also possible that Rakesh Jhunjhunwala has tendered his shares in the open offer where Japanese agricultural machinery manufacturer — Kubota is looking to buy shares to increase its stake and become a co-promoter. Escorts’ share price was down 1.7% on Monday morning, hitting an intraday low of Rs 1,581 per share.

The latest shareholding pattern of Escorts, for the January-March quarter, did not show Rakesh Jhunjhunwala’s name. Earlier, Rakesh Jhunjhunwala held a 5.68% stake in the company with 75 lakh equity shares. The Big Bull had increased his stake in the company in recent quarters from 5.22% earlier. Listed companies are required to provide details of the shares held by investors whose shareholding in the company amounts to more than 1%.

Although the ace investor may have sold his stake in the company as it has been underperforming this year, it is also possible that Jhunjhunwala has tendered his shares in the open offer. According to the latest update on the Kobuta open offer, a total of 5,19,44,014 Equity Shares have been tendered in the Escrow Demat Account till March 28. Further, 7,379 Equity Shares have been tendered by the Public Shareholders holding Equity Shares in the physical form.

Kubota, a Japanese firm is in the process of becoming a co-promoter of Escorts. The company had held a 16.73% stake in Escorts in the middle of February. The latest shareholding data shows that Kubota’s stake has increased to 55.82% with 7.36 crore equity shares.

Along with Rakesh Jhunjhunwala, domestic mutual funds have also either exited the company or tendered their shares in the open offer. Data shows that domestic mutual funds now own a 0.28% stake in the company as against 8.43% last quarter.

The tendering period for the open offer ended on March 28, 2022. The last date for communicating the rejection/acceptance and completion of payment of consideration or refund of Equity Shares to the shareholders is April 11.

Eqwires Research Analyst

Top-notch SEBI registered research analyst

Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company

info@eqwires.com

Telegram | Facebook | Twitter

Call: +91 9624421555 / +91 9624461555

www.eqwires.com

Indian equity markets higher as the surprise merger announcement of HDFC and HDFC Bank catapulted the benchmark indices over 2 per cent on Monday. The S&P BSE Sensex and the NSE Nifty 50 surged over 2.5 per cent intra-day and hit highs of 60,845 and 18,114, respectively before settling at 60,612 and 18,053, respectively. Meanwhile, Nifty Bank index zoomed 4 per cent. Markets witnessed the continuation of the positive momentum as Nifty attempted to hold above the levels of 18,000. Sustaining above 18,000 will be an important level for the market to stay positive in the short term. If the market sustains above the support levels, the market rally is expected to continue, said analysts. On the flip side, a quick intraday correction is not ruled out if the index trades below 17,880.

Mohit Nigam, Head – PMS, Hem Securities
“For the first time since January 19, the Sensex surpassed the 60,000 milestone, while the Nifty50 surpassed the 18,000 mark. Traders have been oblivious to the fact that gasoline costs have risen further, with petrol and diesel rates each increasing by 40 paise per litre on April 4. There has been a net increase of Rs 8.40 per litre in 14 days with this new round of hikes. On the international front, Asian markets were generally in the green, as a strong U.S. jobs report allayed fears of slowing global growth. After Ukraine accused Russia of war crimes, European markets were generally in the red, with investors keeping an eye out for future Western penalties. On the technical front, immediate support and resistance in the Nifty are 17,800 and 18,200. For the Bank Nifty, immediate support and resistance are at 38,000 and 39,200.”

Sachin Gupta, AVP, Research, Choice Broking
“Technically, the Nifty index has confirmed the breakout of the Bullish Engulfing pattern and moved above the prior swing highs. Moreover, the index has sustained above 50-days Exponential Moving Averages (EMA) and showed positive crossover in MACD & Stochastic that suggests a bullish move for the near term. On the four hourly charts, the stock has also traded above the Horizontal Line that indicates a bullish strength for the coming day. At present, the index is having support at 17,800 levels while resistance is placed at 18,350 levels. On the other hand, Bank nifty has support at 38,100 levels while resistance at 39,200 levels.”

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
“Though the markets opened weak, key indices quickly rebounded and clung on to the key psychological levels of 60,000 and 18,000 respectively. The trigger was that the markets gave thumbs up to the HDFC merger announcement and the rally in both the stocks spread to other financial stocks and also had a rub off effect on other sectoral stocks. Also, recent key economic indicators such as core growth numbers and all-time high GST collections showed that the domestic economy has shrugged off geo-political tensions.”

“On daily charts, the Nifty is holding an uptrend formation but due to overbought texture, traders may prefer to book some profit at higher levels. For the trend following traders, 17,880 would act as a crucial support level, and above the same the index may touch the level of 18,150-18,200. On the flip side, a quick intraday correction is not ruled out if the index trades below 17880 and below the same it could retest the level of 17,790-17,750.”

Parth Nyati, Founder, Tradingo
“It was a stellar day for the Indian equity market on the back of the out of syllabus announcement of a merger between HDFC Ltd and HDFC Bank. More than 70% of contribution to the gain of Nifty50 because of HDFC twins also led to short covering in the market. Global cues are stable whereas prices are cooling off and FIIs are showing buying interest that is leading to outperformance in the Indian equity market.”

“Technically, the Nifty has strong bullish momentum however it is trading near a downsloping trendline resistance placed around the 17,125 level; above this, there is a high probability of new highs in the market this month itself. On the downside, 17,800 will act as immediate support while 17,500-17,400 has become a strong base. Bank Nifty is outperforming and it has a strong structure where 39,200-39,500 will be the next resistance area. On the downside, 38,000 is an immediate support level while 37,200-36,800 has become a strong demand zone.”