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Sectors in Focus

Major Corporate Developments This Week

1. Zydus Lifesciences received tentative approval from the United States Food and Drug Administration (USFDA) to market Azilsartan Medoxomil and Chlorthalidone Tablets, 40 mg/12.5 mg and 40 mg/25 mg.
2. Suven Pharmaceuticals has executed definitive agreements for acquiring 100% of equity shares in Sapala Organics Pvt Ltd.
3. Ambuja Cement announced the signing of a binding agreement for the acquisition of Penna Cement Industries Ltd (PCIL) at an enterprise value of Rs. 10,422 crores.
4. L&T bags order in the range of Rs. 2,500-5,000 crore from ONGC
5. Advaith Infratech: Company has received an order worth Rs. 27.87 Crores from GETCO
6. Havells: Company has announced plans to expand AC manufacturing capacities at Ghiloth and Sricity locations to 15 lakh units per year each
7. Vodafone Idea: Company to pare debt by issuing preferential shares worth ₹2,458 crore to Nokia, Ericsson
8. Puravankara: Board approves raising funds up to ₹1,000 crore via QIP.
9. Gensol Engineering: Company gets 250 MW battery energy storage project worth Rs 1,340 crore
10. Sobha: Company board approves rights issue of up to ₹2,000 crore, issue price at ₹1,651/sh
11. Glenmark Pharma: Company receives nod from U.S. FDA to market a generic medicine to treat heartburn.
12. Prestige: Company appoints JM Financial, JP Morgan & CLSA as bankers for Hospitality Business IPO. The company eyes valuation of ₹17,000-20,000cr for hospitality business
13. TVS Supply Chain Solutions: Company signs a new 5-year strategic contract with Daimler Truck South East Asia Pte Ltd, a Daimler Truck AG company, for ISCS service in Singapore
14. B L Kashyap and Sons: Company gets two new orders aggregating to Rs 1,021 crore
15. Raymond: Company to redevelop residential project in Bandra estimated to have revenue potential of over Rs 2,000 crore
16. Ami Organics: Company says the inspection has concluded successfully on June 7, 2024 without any critical/major observation
17. Borosil Renewables: Company board approves raising up to Rs 450 crore via rights issue of shares
18. PTC Industries: Company joins SPV as part of government's drive for defense and aerospace sector
19. JBM Auto: Company Unit has Signed an Agreement with Muon India Private Ltd, A Macquarie Group company and Intends to deploy over 2,000 electric buses with Muon's

TechnoFunda Investing Quote from Legends -

Warren Buffett's quote emphasizes the importance of businesses that consistently achieve high returns on capital and are able to reinvest those returns at similarly high rates. Such businesses effectively become "compounding machines," as they can grow their value exponentially over time by continuously reinvesting earnings at high returns, creating a powerful cycle of growth and wealth accumulation. This concept underscores Buffett's investment strategy of seeking out companies with sustainable high returns on invested capital, which are rare but can yield extraordinary long-term results for investors.

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TechnoFunda 101 - Power Capsules

Learn technical as well as fundamental concept in a simple way

Moving averages

Moving averages (MAs) are stock indicators widely used in technical analysis to smooth out price data by creating a constantly updated average price. They help mitigate the impact of random, short-term fluctuations on a stock's price over a specified time frame. Simple Moving Averages (SMAs) use an arithmetic average of prices over a given timespan, while Exponential Moving Averages (EMAs) place greater weight on more recent prices, making them more responsive to current market conditions.

For example, calculating the 9-day SMA for Titan involves averaging its closing prices over the last nine days,

Yielding an Average of 3437.53 (30,937.85/ 9 = 3437.53).

Moving forward, the next day, i.e. 10th May we have a new data point 3289.85 (Closing price of next day). This implies now the ‘new’ latest 9 days would include 10th May. We will drop the data point belonging to the 26th April as our objective is to calculate the latest 9-day average. So the revised 9-day SMA becomes 3404.76, demonstrating how the 'moving' nature of SMAs adjusts for new data points. This averages for the 9 days (or it could be anything like 5, 10, 50, 100, 200 days) are then joined to form a smooth curving line known as the moving average line, and it continues to move as the time progresses. In the chart shown below, 9 day SMA overlaid over Titans’s candlestick graph.

Traders frequently utilize SMAs for various time frames, such as 5, 10, 50, or 200 days, to smooth market noise and identify trends. Another variant, the Exponential moving average (EMA), assigns greater weight to recent data, making it more responsive to current market conditions. This responsiveness makes EMAs preferred by traders for quicker decision-making despite the similar calculation periods as SMAs. In charts, an EMA is visibly more closely aligned with price movements than an SMA, enhancing the ability of traders to react promptly to market shifts.

Moving averages are calculated to identify a stock's trend direction or to determine its support and resistance levels. They are trend-following or lagging indicators because they are based on past prices. The longer the period for the moving average, the greater the lag; for example, a 200-day moving average will have a much greater lag than a 20-day moving average. The 50-day and 200-day moving averages are widely followed by investors and traders and are considered important trading signals.

🚀 My Content For This Week 🎬 YouTube: Technical Analysis for Beginner Investors | Price Action for Stock Market​ ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek 🚨 Don't let these 11 common investing mistakes drain your portfolio. Learn what to avoid to ensure your financial growth! Detailed Thread below... #InvestmentMistakes #FinancialFreedom 🧵 2:47 PM • May 18, 2024 4 Retweets 27 Likes Read 1 replies ​

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Keep Compounding...

Vivek Mashrani, CFA Founder, TechnoFunda Investing

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