Wednesday, July 02, 2014

After Market Opening Chart Check
Yesterday, the market traded range bound, with positive bias.  Nifty moved between 7625 and 7650 for entire day and finally setting at 7634 with a net gain of 23 points. Nifty which was trading range bound since the last 3-weeks between 7450 and 7700, roughly, today broke out and is now trading at 7725. The undertone of the market has turned highly bullish and any dip appears to be a buying opportunity. The investors are suggested to give more stress on buying the scrips from small and mid cap space.
Besides, there is a demand from the beleaguered Pharma, Biotech and CRO industries to Increase Overall Healthcare Expenditure to 2.5% of GDP and allow 100% Foreign Direct Investment in Health and Medical Services. Inspite of UPA government's apathy and no real impetus in the last budget plus the margin pressures on account of Pricing Policy and Drug Prices Control Order (DPCO), the Pharmaceutical industry including Biotech has been one of the most consistent performers registering double-digit growth throughout. This makes this sector again look attractive after Narendra Modi government came in power, with sky-high expectations.
Today's call: Buy Rohit Ferro Tech Ltd (BSE Code: 500002) at Rs.11.50-11.55 for a target of Rs.15. The company has acquired 60% equity stake in a coking coal mine in Indonesia owned by M/S PT Bara Prima Mandiri through its Subsidiary M/S SKP Overseas Pte. Ltd, Singapore. The mine located in Central Kalimantan Province of Indonesia has an estimated coking coal reserve of 10 MN Tonnes.
The company is also having 60% economic interest in the thermal coal mine in Indonesia owned by M/S.Pt Palopo Indah Raya through its aforesaid Subsidiary. The mine located in Central Kalimantan Province of Indonesia has an estimated thermal coal reserve of Rs.20 MN Tonnes. 

My recommended Marg Ltd hit the upper circuits at Rs.20. This scrip has been recommended a number of times in this blog and I hope most of the investors have money from it. 
Shiv Vani Oil and Gas Exploration Ltd tanked after a sell call was given in the counter yesterday. The short term investors are suggested to book profits and exit the counter. 
Birla Shloka Edutech Ltd which was strongly recommended in this blog today hit the buyer freeze at Rs.5.59. A company of the size of Birla Shloka Ltd should not trade below Rs.20. The scrip, is therefore expected to hit some more buyer freezes from here. 
Dr.Datsons Labs Ltd (Rs.15.35) should be accumulated further if and only if yesterday's low of Rs.15.25 is honored by the market, on a closing basis. Or else simply hold on to your positions with a SL of Rs.14.70 (Exit). There is as such not much problem in the company except servicing of the debt, but some traders are selling out on the fear of equity dilution, which I feel is over-done now. 
Resurgere Mines and Minerals Ltd which owns a number of mines today hit the Upper Circuits in both the exchanges, viz. BSE and NSE. The NSE authorities are requested to increase the circuit limit for the scrip which is being traded there, so that its price becomes at par with that in the BSE (Rs.3.39). Today the volume in the NSE is only 19,678 shares. So, if you think you will get the same easily in the NSE, then you are terribly wrong. Therefore, buy the scrip in BSE and keep holding for a target of Rs.10. A simple "Funda" is that, a mining company cannot trade below its face value (Rs.10). So, in any case Rs.10 is coming. Buy the scrip in Bulk and Keep Holding--you will definitely take my name after few months.
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