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.

Monday, April 10, 2017

Today's Calls
1. Buy Engineers India Ltd at Rs.150.30, T: Rs.175, SL: Rs.146. Engineers India Limited (EIL) is an engineering, procurement, engineering consultancy and construction (EPC) company in the petrochemicals and hydrocarbons industry.
The buyback price has been fixed at Rs.157 per equity share for a total aggregate of Rs 658.80 crore.  Board of Directors of Engineers India Ltd in its Board Meeting held on March 16, 2017 have declared an Interim Dividend of Rs.2.50 per share (on the face value of Rs. 5 each).

2. Those who are holding DLF Ltd (Rs.154.20) are suggested to keep a SL at Rs.153. But for medium term I would like to shift to Idea Cellular Ltd (Rs.87.40), if DLF Ltd continues to underperform.

Friday, April 07, 2017

Today's Calls
1. Buy Punjab National Bank at Rs.150.50 (BSE), for targets of Rs.157-161. Today many of my earlier recommended bank stocks (Dena Bank, UCO Bank, Federal Bank, etc) are all up; after the RBI decided to keep the repo rate unchanged.

2. Those who have entered Jet Airways Ltd are suggested to exit the counter if Rs.109 is broken on closing basis and Rs.104 is broken, intra - day.

3. Those who are holding Idea Cellular Ltd (Rs.88.40) can continue to add th scrip on declines. Today also the stock is moving up with huge volumes. The targets of Rs.123-127 are still intact.

4. Buy DLF Ltd at Rs.156-157, for very short term weekly targets of Rs.161-162.

5. Those who have been accumulating Gammon India Ltd must be happy today, as the stock touched my first target of Rs.12 and is now trading at Rs.11.70, up more than 11% intraday. The investors can do well to book profits at Rs.11.70-12 and wait for dips for re-entry.

Thursday, April 06, 2017

Today's Calls
1. Buy Jet Airways Ltd at Rs.522-534, T: Rs.542The Oil Marketing Companies (OMCs) have cut the Aviation Turbine Fuel (ATF) price by 5.2% to Rs 51,482/kL in Delhi from April 1, 2017 -- this is likely to have significant positive effects on the bottom lines of Aviation companies, like Jet Airways. Meanwhile, Jet Airways, one of the fastest growing airlines of the country, has reportedly decided to start morning flights from Bhopal to New Delhi from April 12, 2017. The company had earlier announced its plans to further strengthen its domestic network and provide guests with greater choice to connect between Metro cities and Tier-II towns.
Jet Airways is India’s premier international airline which operates flights to 67 destinations, including India and overseas. The company’s robust domestic India network spans the length and breadth of the country covering metro cities, state capitals and emerging destinations.

2. Those who are holding the shares of Idea Cellular Ltd (Rs.87) should continue to add the scrip on all declines. The Free Service of Reliance RJio is coming to an end on 15th April, 2017. This is a big trigger for the telecom sector.

Winning Strokes: Think Different
1.Today, my recommended Idea Cellular Ltd at Rs.85.10, today touched Rs.88.10 in the BSE,
before closing at Rs.87.65, up more than 3%. The stock today moved up with volume which is around 4-times yesterday's volume. Accumulate the scrip with a price target of Rs.123. Today most of the Aditya Birla group stocks were up.

2. My recommended Future Enterprises Ltd at around Rs.18-18.50, today reached my 3rd and final short term target of Rs.32 (intraday: Rs.32.60), before closing at Rs.30.70 in the BSE. The traders can book profits and invest in Idea Cellular Ltd, as the it Gets Set To Take On Airtel With Its Own Payments Bank. video
3. Today Gammon India Ltd (Rs.10.28) closed above a major resistance at Rs.10.20. The investors should do well to hold the scrip with a SL at Rs.10.10. On the fundamental front, the company is doing fine. However, unless and until it closes above Rs.10.45, in both the exchanges, it may remain rangebound.

4. Today, my recommended Reliance Power Ltd (Rs.50.35) touched Rs.50.80 in the BSE. The stock was recommended around Rs.44. Those who have still not booked profits can look for targets of Rs.52-53, in the coming days. However, please keep a SL of Rs.48.60 for any short term trade.

5. Rolta India Ltd recommended at around Rs.58-59, today touched my first target of Rs.62, in the BSE. The investor can hold the scrip with 5% trailing SL.

6. Another, ADA Group company today made a huge upmove and closed above Rs.40.50, in the NSE after a long time. Those who were not so happy seeing me recommending even at near Rs.31 or near 52-week price, might be a little relieved today. The worst in the Indian telecom sector seems to be over.