In today’s briefing:
- Tata Motors (TTMT/A IN) – Index Inclusion & The DVR Arb
- R R Kabel IPO Trading – Average Subscription Rates but Strong Insti Demand
- EQD | NIFTY Index New WEEKLY Supports Analysis for LONG Trades
Tata Motors (TTMT/A IN) – Index Inclusion & The DVR Arb
- Tata Motors DVR (TTMT/A IN) now trades at a 32.9% discount to Tata Motors Ltd (TTMT IN) and there is another 4.4% in the trade following the scheme of arrangement.
- Tata Motors DVR (TTMT/A IN) could be added to global indices in November and that will bring significant inflows to the stock.
- The pre-positioning and passive buying could lead to the DVR discount narrowing further and provide trading opportunities for the next few weeks.
R R Kabel IPO Trading – Average Subscription Rates but Strong Insti Demand
- R R Kabel (2333180Z IN) raised around US$238m in its India IPO, after the deal was priced at INR1,035/share. It will begin trading tomorrow on 20th Sep 2023.
- R R Kabel is an Indian consumer electrical company, which primarily sells wires, cables and fast moving electrical goods (FMEG).
- We have looked at various aspects of the deal in our previous notes. In this note, we talk about demand and trading dynamics.
EQD | NIFTY Index New WEEKLY Supports Analysis for LONG Trades
- The NIFTY Index closed up 3 weeks in a row, then fell on Monday, but current pattern looks bullish according to MRM models, we expect a modest correction (if any).
- Usually (69% of the times) this pattern brings a pullback that does not last for more than 1 week, then the following week the index closes up.
- Broadly speaking buy-the-dips support for this week is found between 20050 and 19900. If the correction becomes multi-week, it can go much lower, we will re-assess in that case.
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