Wednesday, May 07, 2014

Today Indian bourses went in for late selling plunging the Nifty down by a massive 62.75 points, while the Sensex nosedived by 184.52 points. But what is good is that, at the end the Nifty got support at the crucial level of 6650. Today also FIIs were net buyers to the tune of Rs.119.11 Cr. The selling is basically coming from the DIIs and clueless retail investors. However, today's fall at the fag end of the day, I believe was more due to the rumours of Jignesh Shah, the 46-year old founder of the FT group, being apprehended by the Mumbai Police. Now what will be the next course of action of  Nifty? Where is expected to trade from here? Should we buy 6700 call or 6600 put? To know all these Join either the Premium Service or my recommended brokerage  houses, before 15th May, 2014, to avail of the Old Rates. Those who will trade through my recommended brokerage house with a minimum portfolio of Rs.1 lakh would get Paid Service Free of Charge. 
Today a scrip was recommended to the Paid Members, whose share is trading at Rs.10.52, has a book value of Rs.39.97 and P/E of only 6.49 against the Industry P/E of 16.57. Also, it has 29.97% of equity (stake) in Haldia Coke and Chemicals Ltd, which in turn hold 60.85% in Ennore Coke Ltd. It is also into Wind Energy in  a major way, and is currently expanding its capacity. What is the name of the company? The scrip is expected to hit non-stop upper circuits from here. The scrip hit Upper Circuits today.
Panic Selling was seen in IVRCL Ltd (Rs.13.50) after some pink dailies published that due to El Nino effect, there could be impact on inflation leading to the RBI going for hard stance on already high Repo rates. But, I feel the correction is over in IVRCL Ltd and the scrip should bounce from Rs.13.20-13.30 levels and move up vertically. It is because, the problems in infrastructure companies is more due to government policies and their slow implementation, rather than high interest rate; though the latter has a sentimental effect. Besides, since IVRCL Ltd is going in for loan restructuring, it is given that the consortium of banks would give it some leeway, to clear its pending debts. Also, once a stable government comes, quick clearances might take place for stalled projects. Therefore our work is to vote the parties who can form a stable government rather than giving our mandates to anyone, who would cater to the local needs. When one is voting for the Lok Sabha (or Parliamentary) elctions, they should always think of the conglomeration they are vouching for. Moreover, restructuring is set to continue with another 12 accounts worth Rs.3,400 crore earmarked to be recast over the next two to three quarters, the management of Canara Bank said last month. IVRCL Ltd alone makes up for half the restructuring pipeline, it added. However, the problems in the sector will persist for at least another three to six months as issues such as slow award of new projects, delay in existing projects and working-capital issues will continue as clients might not release money on schedule.
Entegra Ltd (Rs.3.41) has started hitting non-stop buyer freezes before the monsoons. The company is into renewable energy and its hydro-electric power plant is likely to go on stream soon. The scrip has been asked to be accumulated repeatedly, in this blog. 
A2Z Maintenance and Engineering Services Ltd (Rs.9.84) is consolidating near the current price for the next set upmove. The company recently spoke of taking shareholder's approval to confirm and enable the implementation of Corporate Debt Restructuring Package ("CDR Package'’) approved by the Corporate Debt Restructuring Empowered Group ("CDR EG”) on December 24, 2013 and communicated vide Letter of Approval dated December 28, 2013 (“CDR LOA”). It also, taked about taking shareholders' consent to ssue of Equity Shares on preferential basis in accordance with SEBI (ICDR) Regulations to the Promoter/Promoter Group. Buy the shares of the company and keep holding. It will give you one of the best returns in the days to come. 
Gitanjali Gems Ltd (Rs.62.95) today rose to Rs.64.80 during the intra-day. The company has taken multi-pronged strategy to come out of the blues. Also, after the election results are over, the government of the day, might come up with a package to revive the Gems and Jewelry sector, which bore the brunt of India's high CAD and FD. 
Opto Circuits Ltd (Rs.32.15) closed in the green today, up 1.58%. The worst seems to be over for the company. Opto Circuits (India) Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 06, 2014, inter alia, have subject to the approval of the share holders and other necessary regulatory approvals whatever required. Approved the following;
  • Increasing the Authorised Share Capital of the Company to Rs.700.00 crores from present Authorised Share Capital of Rs.300.00 crores and also to make necessary amendments in the Memorandum of Association of the Company in this regard.
  • To raise funds for the Company and/or for its Indian/Overseas Subsidiaries by way of issue of securities, including Global Depositary Receipts (GDRs) and or American Depository Receipts (ADRs) convertible into equity shares, or any instrument or securities representing convertible securities such as convertible debentures, bonds or warrants etc., convertible into equity shares, in one or more tranches, in Indian or Foreign Market(s) as applicable, whether optionally or otherwise or any combination thereof (hereinafter referred to as "Securities") up to an aggregate amount not exceeding US$ 250 million (Two hundred Fifty million US Dollars). I am looking for a target of Rs.50, in the short term. 
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