Section 1: Company Fundamentals

1.1 Summary Table

1.2 The Key Positives & Negatives

1.3 Underlying Commodities Analysis:

The price of gold reached its highest level in six weeks on Wednesday as investors flocked to safe-haven investments and market tension changed expectations for central banks' plans for interest rates. Once shares of Credit Suisse, a Swiss bank with significant American and international operations, fell by more than 20%, concerns about a wider financial crisis increased. After Silicon Valley Bank and Signature Bank failed earlier in the week, it follows. This week, the metal has increased by more than 3% due to rumors that the Fed may decide to suspend its tightening campaign in order to prevent more threats to the financial system. In keeping with projections, recent statistics also revealed that the US annual inflation rate decreased further in February to 6%, the lowest level since September 2021.

Midway through March, as investors fled to the protection of bullion assets due to worries about the state of the world's banks, silver futures rose to over USD 22.2 per ounce, the highest price in more than a month. Notwithstanding its warning of substantial weakness, the Saudi National Bank declined to invest in Credit Suisse further, escalating concerns about the viability of the European financial system in the wake of the failure of large American bankers and in advance of the ECB's accelerated quantitative tightening. Money markets priced equal possibilities for the Fed to raise its funds rate by a gradual 25 basis points and keep them unchanged at the central bank's next meeting as a result of the ongoing financial crisis. In the meantime, producer prices in the US decreased more slowly than anticipated, giving rise to optimism that inflation in the US economy may be declining.

Section 2: Pan American Silver Corp (“Buy” at USD 16.74, current market price as on March 15, 2023, at 09:20 AM PDT)

2.1 Company Details

2.2 Valuation and Technical Guidance

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance. 

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is March 15, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.

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