Saturday, May 13, 2017

Winning Strokes: Think Different
Idea Cellular Ltd yesterday moved to Rs.93, before closing at Rs.
92.35. The scrip if you remembere was recommended at around Rs.77-78, with a strong buy recommendation. The targets for the stock remains Rs.125-127, as the government has formed a panel to look into the owes if the telecom sector.

Reliance Communications Ltd rose to Rs.33.20 before closing st Rs.32.45, down 1.52%. However, the fall has been with low volumes especially on a day like Friday, indicating that selling is probably coming to an end. I am hopeful of targets of Rs.41-42, in the coming few weeks. RCOM is likely to be taken over by RJio, in the near future; till then any positive move for RJio is positive for RCom as it gets royalty income from the latter (infrastructure, spectrum Sharing, etc).

Yesterday, UCO Bank (Rs.41.70) moved to Rs.42.20 before closing flat, while Dena Bank (Rs.40.15) nosedived to Rs.40, intraday before closing near the days low. If you remember profit booking was suggested in both the counters, as I felt the bank (share) rally is over.

Simplex Projects (Rs.34.65) yesterday, moved to Rs.35.80 in the NSE with very low volumes. The stock is not responding to the triggers and is struggling to close above Rs.37. I would therefore, suggest the traders to exit on rallies. Long term investors however can hold with a SL at Rs.31.

Wednesday, May 10, 2017

Winning Strokes: Think Different
Today was the day for telecom stocks as most of them surging more than 2% intraday. At one time my recommended Bharti Airtel was up more than 9%, as the stock closed the at Rs.372.75 up more than 7%. The RCom closed at Rs.33.10, up 1.85% (Intra day high of Rs.33.85). Now, as RJio continues its paid packages and government takes initiative to revive the sector, the investors can look at this sector once again for some decent future gains.

Dena Bank Ltd which was recommended at around Rs.37, last months today made a new 52-week high of Rs.50 in the BSE. Another of my recommended counter in the PSU banking space UCO Bank Ltd closed at Rs.41.75 in the BSE after making an intra day high of Rs.43-plus. The investors are suggested to book profits in both the counters.

Shilpi Cable Technologies Ltd (Rs.74.65) continues to hit the lower circuits, after it broke a major support at Rs.117. I am expecting the share to go below Rs.70. Therefore, keep away from this stock, at the present moment.

Buy the shares of Simplex Projects Ltd (Rs.34.65) at around Rs.34.34.50, for targets of Rs.51-52. The stocknis on an uptrend and its sister company is doing Metro Rail project bin Bombay.

Tuesday, May 09, 2017

Buy: Telecom Stocks
An inter-ministerial committee being set up by the government to look into the financial woes of the telecom sector would have about three months to hand over its views and solutions to the government. 

According to people in the know, the panel is likely to have six to eight members, including two from the telecom department and one each from the departments of revenue and economic affairs. 

The panel would look into issues related to the sector’s financial health, which has taken a beating due to cut throat competition triggered by the entry of RJio reports the ET.

In another significant positive development: India's telecom subscriber base, mobile and landline combined, touched the 1.18 billion mark at the end of February 2017, growing 1.17 per cent over the previous month, according to regulator Trai.

Reliance Communication Ltd will now move towards Rs.40-41, Bharti Airtel (Rs.351.25) towards Rs.370-380 and Idea Cellular Ltd (Rs.87.55) towards Rs.127-130. So, the best two stocks to invest at this moment are: RCom (Rs.32.45) and Idea Cellular Ltd.

Monday, April 24, 2017

Today's Calls
1. Buy Tata Motors Ltd at Rs.442, T: Rs.471-475, SL: Rs.437.  There is some reshuffle in the management of Tata Motors.

2. Buy in Bulk the shares of Reliance Communications Ltd (Rs.34.15) as it could get merged with RJio and become a formidable player in the telecom sector. The amount of properties Reliance Industries have in Navi Mumbai (New Bombay) is of astronomical proportions. Upon merger with RIL group, the RCOM will get sufficient financial clout to take on the competition; as it will then be a part of the RJio. Therefore, buy in Bulk the shares of RCom.

3. Those who are holding the shares of Reliance Power (Rs.50.45) are suggested to keep holding as Anil Ambani Ground shares is likely to move up now. We are already witnessing good moves in Reliance Capital Ltd (Rs.612) and Reliance Infrastructure Ltd (Rs.582).

3. Buy the shares of Idea Cellular at Rs.84.80, T: Rs.91 - 101. There is nonneed to keep S L as after RJio's Paid service most of the telecom stocks are likely to zoom. Moreover, Post-merger, leverage (of the merged entity) is expected to fall gradually, while the quality of spectrum assets will rise. Even after they surrender excess spectrum, they will hold more spectrum than both Airtel and Jio. There are a host of other synergy benefits, and it turns out that a large proportion of shareholder value hinges on extracting these benefits. It is useless to spend time analysing the standalone entity as the merger is now a happening case.

Monday, April 17, 2017

Today's Calls
1. Buy Idea Cellular at Rs.85.45, T: Rs.89-91, SL: Rs..84.60. Idea Cellular to launch payments bank operations in June. The company, that recently received the Reserve Bank of India's final approval to open its payments bank, is in the process of integrating its systems with those of the National Payments Corporation of India and the RBI. Joining the network will allow it to facilitate interbank electronic transactions.

2. Sudarshan Sukhani says in CNBC TV18: "The chart of Tata Motors is horrible", but the share makes an intraday high of Rs.455.70.This only goes to show how only chart based calls are futile. I have been saying this since more than a decade, but Chartists (mostly the software sellers) fails to acknowledge this facet of trading.....😀 Anyway, if the stock manages to close above Rs.458, then we can look for targets of Rs.472-475, in the short term.

3. The worst in the telecom sector seems to be over, as RJio is now Paid. Moreover, UBS had earlier spoken of a much better quarter sequentially from Q1FY18 (June Quarter) onwards. Therefore, start accumulating Telecom stocks in bulk to reap good benefits in the short to medium term. Also the correction on RCom seems to over and one can buy the shares of RCom at Rs.34.50, T: Rs.39-41. There is no need to keep SL as the scrip of RCom is now available at rock bottom price, especially when the optimism in the sector is again returning; after almost 3-quarters of pain.
Meanwhile, there are recent media reports that the mega merger between Reliance Communications (RCom) and Aircel to create the country’s third-largest operator is entering the final phase, with both companies seeking shareholder approval in the coming days.

4. Today, the Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.11%, while the Shanghai Composite led the Hang Seng lower. They fell 0.74% and 0.21% respectively. Indians markets are today trading flat, however action is seen on beaten down Counters.

Thursday, April 13, 2017

Today's Calls
1. Buy Tata Motors Ltd at Rs.461, for short term targets of Rs.472-475, SL: Rs.457. Tata Motors' pricing strategy works with Tigor; sales crosses over 3,000 units in first month. Encouraging global volumes for its UK subsidiary, JLR, and expectations of a lower hedging loss is attracting investors. 
JLR's retail volumes grew by 21% year-on-year to 90,838 units in March 2017 due to continued sales momentum for F-Pace and gradual pick up in sales of revamped Discovery after it phased out the old model. In addition, Discovery Sport's volume grew at an unexpected 13% on a higher base. UK sales grew 27% after staying in low single digits in the past five months.Sales growth in North American, China, and Europe was 19-21%. 

2. Infosys Ltd declared satisfactory results today amidst demonetisation and US visa pangs. The software services exporter Infosys Ltd has reported consolidated profit at Rs.3,603 crore for the January-March quarter, degrowth of only 2.8% from Rs.3,708 crore in previous quarter. Revenues fell marginally by 0.88% to Rs.17,120 crore on sequential basis. However, the announcement of Rs 13,000-crore payout through dividend or share buyback during the year and fall in attrition rate is likely to lift the sentiments of Indian share markets. The company has guided its EBIT margin for the year at 23-25 percent.
The IT major has announced a final dividend of Rs 14.75 per share. Including this, aggregate dividend for financial year 2016-2017 amounted to Rs 25.75 per share, resulting in total payout of Rs 7,119 crore, it said. The Nifty spot is now trading at 9,186.85, down 16.60 points or 0.18%, but is expected to change to Green soon.

Wednesday, April 12, 2017

Today's Calls
The project development will require an investment outlay of nearly $1 billion. Financing of the project is under consideration of Asian Development Bank and a consortium of lenders, said the Anil Ambani Group company in a statement.
The markets are probably nervous before the results of Infosys Ltd. Book small intraday profits at Rs.48.50 and wait for the market to stabilize, for fresh entry in Reliance Power Ltd (Rs.48.50).

2. The shares of all telecom companies should spurt after RJio came up with new Paid Offers. The UBS has already mentioned in their research report that from Q1FY18, the fundamentals of telecom companies are set to improve. Therefore, use every dip to buy the shares of RCom (Rs.36.85), Idea Cellular (Rs.87.40) etc. Don't look at these Blue Chips on daily basis.

Tuesday, April 11, 2017

Today's Calls
Company officials asking not to be named said job cuts will help the 7,500-strong RCom integrate workforce when mergers with Aircel and MTS materialise.  When RCom announced its merger with Aircel in September 2016, the companies said cost synergies would be about Rs 20,000 crore. Costs would halve following the merger, they said. Much of this will come from job cuts since the infrastructure is already in place and it is unlikely that leasing and rental agreements will change drastically, experts said. 

2. Those who are holding Engineers India Ltd (Rs.151.50), can continue to hold with a SL of
Rs.147, for targets of Rs.171-175. Any buoyancy in oil and gas sector is positive for the stock.

3. Those who are still holding the shares of DLF Ltd (Rs.160.20) from Rs.156 and averaged during intrada dips can book some profits around Rs.160-160.70 and keep holding the rest with a SL at Rs.156.

4. My earlier recommended two steel stocks: Jai Balaji Industries Ltd (Rs.23.65) and Rohit Ferro Tech Ltd (Rs.7.20) are hitting continuous UCs since last few days. I am expecting Jai Balaji Industries to test Rs.31-32 ranges while Rohit Ferro could cross Rs.9. I would suggest a hold on both the counters.