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Engineers India: Buy for a target of Rs. 93 for 3 months

HDFC Securities is bullish on the counter of Engineers India and recommends it as a ‘Buy’ for a target price of Rs. 93 in 3 months. This is a potential upside of over 18 percent from the stock’s last traded price of Rs. 78.5 per share. Stop loss suggested for the stock pick is Rs. 72.

Technical observations:

The scrip is in a short term uptrend as it has been making higher tops and higher bottoms for the last several sessions and has taken out its previous swing high of 76.3. In the previous session due to above average volumes the stock broke out of the 71-76 trading range.

As the stock trades above the 20 day and 50-day SMA, technical indicators suggest positive signals. Daily momentum indicators such as the 14-day RSI have recovered from oversold levels and are in rising mode currently. This augurs well for the uptrend to continue.

“With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy”, adds the brokerage firm

Notably, the brokerage recommends the buy on the counter in the price range of Rs. 74.5 to 77.3.

Engineers India is a top engineering consultancy and EPC company that delivers world-class projects for its clients globally. The company’s services are into supply chain management, project management, construction and other specialized services.

DLF Ltd: Buy DLF for a target price of Rs. 469

The leading brokerage firm recommends buying the stock of realty major DLF in the price range of Rs. 417.25-393 for a target price of Rs. 469 to be realized in 3 months. This shall amount to potential gains of 13 percent from the last traded price of Rs. 414.8. Stop loss for the investment idea is suggested at Rs. 385.

Technical observations:

– Stock has formed new lifetime high on weekly chart which is positive sign.

– Higher top and higher bottom formation has been witnessed on all degrees.

– Price has given breakout and moved up sharply.

– Short term trend of the stock remains positive as it is trading above all key moving averages.

– Oscillators like MACD and DMI are showing strength in the stock.

– Plus DI is trading above Minus DI indicating momentum in the current uptrend.

” Considering the Technical evidences discussed above, we recommend buying the DLF at 417.25 and average at 393, for the upside targets of 452 – 469, keeping a stop-loss at 385″, adds the brokerage report.

DLF or Delhi Land & Finance founded in the year 1946, started its real estate journey by developing 22 urban colonies in Delhi. Currently, it is the largest publicly listed real estate entity that has residential, commercial as well as retail properties across 15 states and 24 cities.

Disclaimer:

The investment ideas are picked from the brokerage report of HDFC Securities. Investors should note that investing in stocks is risky and neither the author, nor Greynium nor the brokerage would be responsible for losses based on a decision from the above article.

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The Securities Exchange Board of India (SEBI) has introduced swing pricing in bond funds to shield debt fund investors from big redemptions by other investors.

The Indian Association of Mutual Funds has been asked to propose broad parameters for determining swing pricing thresholds and an indicative swing threshold range for normal times. For the same, asset management firms (AMCs) are permitted to have additional parameters.

Except for overnight funds, gilt funds, and gilt funds with a 10-year maturity scheme, the regulator has established the swing pricing structure for bond fund units. With effect from March 1, 2022, this circular will be implemented.

What is Swing Pricing in mutual funds?

Swing pricing is when a fund’s net asset value (NAV) is adjusted to pass on trading charges to customers who purchase and sell inside their accounts. Its purpose is to shield long-term shareholders from the fund’s transaction activity eroding the value of their accounts.
If a fund’s net inflows or withdrawals surpass a certain amount defined by the fund provider, swing pricing is used. The supplier calculates the NAV as usual before modifying it by the selected swing factor in all cases.

Swing pricing for normal times

The swing pricing methodology during regular times is as follows:

The MFI will provide broad rules for determining thresholds for triggering swing pricing, which the AMCs will follow. AMFI will also give the industry an indication of a swing threshold range at typical times.

In addition, depending on the structure and characteristics of the mutual fund scheme, AMC may be allowed to have other parameters if it so wants. iii. For typical times, AMCs will determine whether swing pricing is applicable and the magnitude of the swing factor based on scheme-specific issues.

Swing pricing for market dislocation

AMFI will establish a set of guidelines for identifying market dislocation and will suggest it to SEBI. SEBI will evaluate if there is a “market dislocation” based on AMFI’s recommendation or on its own. When a market dislocation is announced, SEBI will notify investors that swing pricing would be in effect for a set length of time.

The swing pricing structure will be mandated exclusively for open-ended debt schemes excluding overnight funds, Gilt funds, and Gilt with 10-year maturity funds following the declaration of market dislocation.

The schemes stated in para II(b) above will be subjected to a minimum swing factor as follows, and the NAV will be adjusted accordingly.

Within three months of the date of this circular, all open-ended debt schemes except overnight funds, Gilt funds, and Gilt with 10-year maturity funds.

As a result, swing pricing acts as a “circuit breaker” for mutual funds, increasing the cost of departing schemes and preventing major investors from making rapid withdrawals.