WEEKLY REPORT

WEEKLY REPORT

China-U.S. Trade War to Weigh On Zinc, Aluminium Prices, Says Vedanta

Vedanta Ltd. expects its zinc and aluminium businesses—which together contribute more than half to the mining conglomerate’s operating profit—to remain under pressure due to the ongoing trade tensions. Prices of zinc—that fell 11 percent in the financial year ended March—are likely to decline further in the ongoing fiscal, the billionaire Anil Agarwal-led company said in its 2018-19 annual report. On the other hand, Vedanta expects aluminium prices to remain range-bound and sees no uptick. That’s also because of increase in aluminium production and smelter capacity in China. Vedanta, however, expects to lower the cost of production for the zinc and aluminium this year.

The company aims to lower production cost of zinc by $1,000 a tonne in 2019-20. “De-bottlenecking and expansion of smelting capacity to maintain mines are expected to lead to higher production for this division,” Vedanta said in the report. It expects to increase zinc volume by 12 percent to 1 million tonne by March 2020.For aluminium, Vedanta said increased bauxite sourcing, reduced dependence on imported alumina, improved volumes from alumina refinery, better coal availability, linkage and coal stock and efficient stock and efficient logistics would lower its production cost by 8-10 percent.

Oil & Gas: The Company expects demand for oil and gas—which contributes around 30 percent to its operating profit—to increase in India even as it’s expected to stagnate globally due to the economic slowdown and trade war concerns. Vedanta, which aims at producing 50 percent domestically, expects output to grow 6-16 percent this fiscal, it expects the Raageshwari Deep Gas facility to add 15,000 barrel of oil equivalent per day from the second quarter, which will help Vedanta meet its 200-220 thousand boepd guidance for FY20, according to the annual report.

Slow Monsoon Progress Threatens Dry Spell for India Agriculture Stocks

(Bloomberg) -- As monsoon rains that started late make a slow progress across India, shares of local seed producers, fertilizers and agro-chemical makers are reeling under a dark cloud.The southwest monsoon, which waters more than half of India’s farmland, has registered a 43% deficit through June 19 after hitting the southern coast a week later than normal on June 8, according to the India Meteorological Department. Any shortfall in showers during the early part of the season could delay sowing and reduce crop yields, even if the monsoon gathers pace later.

“With almost 20 days over in the season and no great progress in the monsoon, the agri-related stocks have not been performing well,” A.K. Prabhakar, head of research at IDBI Capital Markets Services Ltd., said by phone from Mumbai. “The rainfall spread is more important even if there is a deficit. The next 10-15 days will be very crucial and if there is no major pickup in the rains, then it then it becomes a problem.

”Companies directly dependent on India’s agriculture sector including Kaveri Seeds Co., EID Parry Ltd., UPL Ltd., Bayer CropScience Ltd. and Bharat Rasayan dropped at least 10% this month. State-run fertilizer companies weren’t spared either with Rashtriya Chemical & Fertilizers falling 8% while National Fertilizers Ltd. slumped 9.4% this month.

Because of a few negative news for the market this week, nifty has closed at 11724 by a 107.65 points decrease by 0.91 %. This week Nifty opened at 11844 made high of 11844, made low of 11625 and closed at 11724.  Nifty didn’t go up from the opening price this week. Moreover nifty is decreasing for the last three consecutive weeks, which shows us that Bears are in the power in the market currently. Moreover, because of these negatives news the coming week might be more volatile. So keep SL in every trade.

On weekly bases resistance is 11844 and 12103 and support is 11591 and 11426.

Looking to our call performance on weekly basis we end up with Profit of RS. 47200/- following are the details of our calls.

Calls Brought Forward from the previous weeks 19

Calls given 9

In profit closed 6

In loss closed 9

And Total call running for next week 10

MCDOWELL_N Loss = ₹ 2200

CADILAHC Loss = ₹ 2300

SUNTV Loss = ₹ 2500

LUPIN Loss = ₹ 3700

SRF Loss = ₹ 14500

BANKNIFTY Profit = ₹ 3000

LICHSGFIN Profit = ₹ 11000

M_MFIN Profit = ₹ 41250

ORIENTBANK Loss = ₹ 15000

BEML Profit = ₹ 39600

VOLTAS Loss = ₹ 23000

AXISBANK Profit = ₹ 43200

BHARTIARTL Profit = ₹ 5100

TCS Loss = ₹ 8750

EXIDEIND Loss = ₹ 24000