Thursday, January 16, 2014
WINNING STROKES: THINK DIFFERENT
Gitanjali Gems Ltd as expected hit the buyer freeze, in the late afternoon trade. The stock got locked in the UC at Rs.69.60. On the other hand Shree Ganesh Jewelley House (I) Ltd (SGJHL) which has a book value of Rs.220-plus against a CMP of Rs.27.60 and is into Gold Mining, Bullion Trading, Retail, Solar Energy, Gold Finance, etc. also, closed in the Green today. It is almost certain that the company CDR Scheme will get approval from the consortium of banks. Besides, this the government of India's recent moves to curb smuggling of gold is expected to raise the price of the yellow metal in the domestic markets, apart from the normal season demands coming in the two months of "Magh and Falgun". Also, companies like Gitanjali Gems Ltd and SGJHL, who derives a good amount of revenues from exports is likely to be beneficiary of a stable currency. Moreover the recent government action on Dore Gold will also augur well for the companies. It is widely believed that the government could soon reduce the import duty by at least 2% to curb the nuisance of gold smuggling.
Essar Ports Ltd is coming up with a result on 23rd January, 2014, which will be along the expected lines. Hence, if you have not taken position in the counter, you can still enter at around Rs.57.70-58, because the worst seems to be over.
Todays' call Entegra Ltd hit the buyer freeze at Rs.3.52. The scrip is expected to slowly inch up towards Rs.10-11 in the coming days. It is a scrip from the reputed S Kumar's group.