Friday, September 26, 2014

WINNING STROKES: THINK DIFFERENT
The Nifty as expected got support at around 7850, during intra-day--this was mentioned to the Paid Groups during the market  hours. The Nifty was trading at that time at 7870. The Nifty closed the day at 7968 up 57 points. The risk taking Nifty traders might have money in this call of mine. 
Country Club (I) Ltd (Rs.12.68), which has established 205 properties of which over 55 are owned and 175 are franchised plus a global gateway via Country Vacations and RCI affiliation of 4000 resorts for its esteemed members, has probably formed a temporary bottom, as it bounced from the 21DEMA. The candle stick chart pattern is likely to get confirmed (of Bullish formation) in the coming days. The company is (Undivided) Andhra Pradesh based, where the property prices are shooting over the roof, especially in and around Vijayawada. The next target for the scrip is Rs.15. A break out above Rs.16.25, can take the scrip to around Rs.21-22. in the medium term. Moreover, Country Club India Ltd has recently informed BSE that the Board of Directors of the Company at its meeting held on August 14, 2014, has recommended a Final dividend of 5% i.e. 10 paise on each Fully paid-up Equity Share of Rs.2 to the Non-promoters of the Company for the Financial Year 2013-14.
The following was sent to the Paid Groups during the market hours: 'Bhushan Steel Ltd has a debt of around Rs.40, 000 crores and it is planning to raise only Rs.1000 crores in consultation with lenders from sale and lease-back of critical assets. The share is still trading around Rs.106. These kinds of companies should be avoided even if they suddenly start hitting the Upper Circuits. However, speculative bets can always be taken with strict stop losses'.  The scrip closed at the Upper Circuits today (Rs.107). But as mentioned earlier, this is a pure speculative call and non-risk taking investors should not purchase such scrips. 
It seems the worst is over for PIPAVAV DEFENCE AND OFFSHORE ENG LTD. The stock covered the intra-day dips and closed flat at Rs.38.75, near the intra-day high of Rs.39.30. The company had AGM today. We could expect some positive news in the next week. Last month, the  government of India notified increase in FDI limit to 49% through approval route in the sector. The move is aimed at boosting domestic industry of the country, which imports up to 70% of its military hardware. FDI ceiling in the sensitive defence sector has been hiked from 26%, with the condition that the company seeking permission of the government for FDI up to 49% should be an Indian company owned and controlled by Indians. Further, foreign direct investment proposals above 49% will have to seek the approval of the Cabinet Committee on Security on "case to case basis, wherever it is likely to result in access to modern and state-of-the-art technology in the country," according to the press note of the Department of Industrial Policy and Promotion (DIPP). Besides, according to Live Mint, 23 September, 2014: "Uncertainty over the fate of subsidy payments for shipbuilders such as Pipavav Defence and Offshore Engineering Co. Ltd, ABG Shipyard Ltd and Bharati Shipyard Ltd could lift soon, with the government looking to extend the payment timeline for a scheme which ended seven years ago. Extension will benefit shipyards that are still building ships under contracts signed when the scheme was on, and even for some which have already delivered ships but awaiting subsidy". Moreover, chartically speaking, the stock is likely to bounce from the oversold positions, in the next few trading sessions.
Resurgere Mines and Minerals Ltd (Rs.1.59) is getting unnecessarily sold off, even as the company is contemplating to start mining in its Soapstone Mine, from the next week and is seeking government's approval for the Iron Ore Mine in Yelwan Jugai, Maharashtra and Bauxite Mine in Satarda, Maharashtra.  The Company yet to start the mining activities in  Mahalmiriya, Maharashtra . The leaseholder has failed to his commitments and company has filed litigation against the leaseholder. There is no turnover since last two years in the Company except negligible turnover from the soapstone mine of the company situated at Udaipur (Rajasthan). So, there are no movement in the Trade Payable, Creditor for Capital Goods, Capital work in progress, Inventories, Trade Receivables, Inter Corporate deposits and Mine Deposits. Company is in process for confirmation and reconciliation with the parties. Meanwhile, Chief Minister of Goa, Mr.Manohar Parrikar said that issue of granting mining leases under the state's mining policy would be placed before the cabinet on September 30.
IVRCL Ltd was asked to be averaged (or fresh positions taken) at around Rs.15, during the day. The scrip closed at Rs.15.30.
There were media reports that ABG SHIPYARD LTD will now divert the bulk of Rs.13 bln working capital loan for completing its pending orders. The benefits might also go to its subsidiary, Western India Shipyard Ltd (Rs.1.83).
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