Monday, March 02, 2015

Market Mantra
Western India Shipyard Ltd today hit another buyer freeze at Rs.3.28. There were some speculative news that the reputed Mahindra Group is thinking of taking a stake in its Parent Company, ABG Shipyard Ltd. What should the investors do at this stage? Join the Premium Group or trade through my recommended brokerage house with a minimum portfolio size of Rs.2 lakhs, to get suggestions during the market hours. 
Today's calls
(i) Buy GMR Infrastructure Ltd at Rs.17.50-17.85, for a target of Rs.22. You must have read the media reports that on the first day of auction, GMR Infrastructure Ltd bagged one coal mine along with Reliance Cement. With the government's push on the infrastructure sector, stocks like GMR Infrastructure Ltd are likely to do well. Moreover, The Hindu Businss Line of 1 March, 2015 wrote: 
GMR Infrastructure Ltd plans to raise Rs.1,400 crore through issue of equity shares on a rights basis. The company in a regulatory filing has informed BSE that the board of directors on February 28 had finalised the terms and conditions of the issue of equity shares having face value of Re.1 each on a rights basis to its existing shareholders as on the record date. 
This means those who will buy the shares now will be entitled to Rights Issue at a later date.  
(ii) Buy Jaiprakash Assoiates Ltd at Rs.25.10, for a short term target of Rs.27-32. You must have read the media inputs that Jaiprakash Associates pipped Bharat Aluminium Co Ltd (Balco), Hindalco Industries Ltd, Hindustan Zinc Ltd, Shree Cements Ltd and Ultratech Cement Ltd among others to secure the Mandla North mine. The company can use the material for its cement plant for captive power generation.
(iii) Buy Gtanjali Gems Ltd at Rs.50.50--51 for a target of Rs.62. The Economic Times, 28 February, 2015 wrote: Govt to introduce Indian-made gold coins to reduce demand for foreign coins and proposes to introduce gold monetisation schemes. (stocks like Gitanjali Gems, PC Jwellers would be the major benefiters). World Gold Council managing director-India Somasundaram PR said: "This announcement will have a healthy impact on the gold sector, but this can be realised only if trade is liberalised without artificial curbs through higher duties and other forms". The monetization scheme will drive orderly recycling and enhance transparency, benefiting millions of households and the macro economy, as it has the potential to translate gold savings into economic investments, Mr Somasundaram said.
Yesterday, I recommended IVRCL Ltd in facebook at around Rs.18, today the stock is now trading at Rs.19.80, up more than 9%.
Those who are holding Jaypee Infrastructure Ltd at around Rs.21, can continue to hold the same with a SL of Rs.19.70. I again reiterate, "Jaypee Infrastructure" is the cash cow of the J P Group. 
Rasoya Proteins Ltd is going great today and is now trading  near the the Upper Circuits (UC) in the BSE (at Re.0.44). Therefor, there are chances of its getting Freezed today at the UC. Keep an eye on the counter. 
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