MCX Ltd which was recommended around Rs.255 and Rs.270, today hit another circuit to close at Rs.453.20, which is almost near my 2nd target of Rs.470. The scrip has been hitting non-stop upper circuits from around Rs.280.
Buy Tulip Telecom Ltd at Rs.8.15 for a target of Rs.12-15, SL-Rs.7. The Board of Directors of Tulip Telecom has by way of passing a Resolution by Circulation on August 30, 2013 accorded their approval on the appointment of Mr. Anuj Bhargava (Nominee of ICICI Bank) & Mr. P.C. Bandivadekar (Nominee of Tata Capital Financial Services) as the Non-Executive Independent Directors of the Company w.e.f August 29, 2013.
Today Manappuram Finance Ltd though recovered from the lower circuits but still it closed with a loss of around 3.8%, which surprised me. It is because when most of the Bank Stocks are moving up and the Sensex was up more than 400, it was unusual to see this kind of momentum counters, hitting the lower circuits. What was a little baffling is that, inspite of sources confirming that there is no problem in the company and gold price recovered from their early losses a to move higher by Rs.160 to Rs.32,764 per ten grams in futures trade (as speculators enlarged their positions, moving in tandem with a firming trend overseas. Gold price in overseas markets, which normally set price trend on the domestic front, edged higher today as investors looked for bargains after a sharp drop in the previous session, but it stayed below the key level of $1,400 an ounce as upbeat US data dented its appeal as an alternative investment), the scrip closed in the red. This raises questions as to who is playing with this share, when even its peer group company Muthoot Finance Ltd (touched Rs.124.95 today) is doing much better. Is there any circular trade going on in the shares of Manappuram Finance Ltd, because a large FII has taken position in the counter? The regulatory authority should immediately take steps, so that any attempt to do mischief with the share price is nipped in the bud.