Wednesday, June 29, 2016

Winning Strokes: Think Different
Unitech Ltd (Rs.5.86), continued its upward journey even yesterday, as the stock made an intra-day high of Rs.5.91 in the BSE before closing at Rs.5.86; with a whooping volume of 170.01 lakhs. According to my close sources, the company is taking various measures to bring it back to track. The stock is expected to double in the next 30-45 days. The Wikipedia says: "Unitech Limited is India's second largest real estate investment company, and has recently claimed to be the largest real estate builder in the country".

The scrip of Jaiprakash Associates Ltd (J P Associates Ltd) today moved to Rs.7.65, before cooling down at Rs.7.51, in the BSE. The stock would have closed near Rs.7.57-7.59 ranges, however, late selling pulled the price down.  The total loans of Jaiprakash Associates, the real estate and infrastructure company, stand at Rs.58,250 crore against a market capitalisation of less than Rs.2,000 crore. The RBI recently came up with Sustainable Structuring of Stressed Assets, a system that allows banks to partly own borrower companies. Most of the analysts have pointed out that many lenders may be forced to opt for a “haircut” or forego part of their principal and interest rates to prevent these loans from turning bad - - this is indeed music to the shareholders of J P Associates Ltd. The promoters holding in the company stood at 39.38 % while Institutions and Non-Institutions held 27.02 % and 33.59 % respectively. All time high of Rs.308.86 on 4 January 2008. Today the percentage of Deliverable Quantity to Traded Quantity was whooping 41.40%, indicating huge accumulation, by the prudent investors. Moreover, the formation of Doji, with a long upper shadow, indicates that bullishness in its share price is likely to continue, for more time. Therefore, the investors are suggested to buy the scrip in every decline; as it is likely to test Rs.10.5 - 14 soon.

My another recommended counter, Lanco Infratech Ltd today made an intra-day high of Rs.4.79, before closing at Rs.4.73. The Economic Times, today wrote: "The government is mulling an additional Rs 25,000 crore allocation to roads, railways and power sectors over and above the allocation made to them in the Union Budget, potentially providing a mid-year boost to public spending". This stock will make new highs in this fiscal and hence add it on all declines. 

Meanwhile, the union Finance Minister Arun Jaitley participated in the First Annual General Meeting of Asian Infrastructure Investment Bank (AIIB) held at Beijing in China on last Saturday. Outlining Indias development paradigm, Jaitley said that India has undertaken reforms in FDI and initiated large investments in rural infrastructure, national highway, inland waterways, shipping, power sector and smart cities etc.

Speaking on the role of AIIB, the Finance Minister said: AIIB presents a much needed additional financing window dedicated to infrastructure projects and meeting the financing gap that may be beyond the capacity of the individual countries and the existing MDBs. India has a huge unmet demand for investment in infrastructure and is preparing basket of projects worth US$ 2-3 billion for AIIB funding in the areas of Urban Development (including Smart Cities), Energy, Urban Transport, Railways, Inland Waterways and Water Supply.

When the Smart City mission was launched in June last year, the Prime Minister had set a target of creating 100 Smart Cities by 2022 with an initial government investment of Rs 50,000 crore.


On the first anniversary of the Smart City mission this Saturday, PM Narendra Modi launched a slew of new proposals in Pune. The proposals range from plain slum rehabilitation, sewage treatment plants and plastic bottle recycling to new-age Information and Communications Technology (ICT) solutions such e-pathshalas, intelligent transit management system, intelligent street poles and multi-purpose smart cards across all modes of public transport. 

There is no stopping of Punjab National Bank and Allahabad Bank Ltd. Punjab National Bank made an intra-day high of Rs.105.50, before closing at Rs.104.20. The stock of Punjab National Bank Ltd, which recommended at Rs.79 and later asked to accumulate on all declines, is looking slightly overbought on the chart. 

In a spectacular move, one of my earlier recommended counters, ARSS Infrastructure Ltd (Rs.83.60), hit the upper circuits yesterday, continuing its winning run; after the company's JV won a Rs.44 crore order from the Indian Railways for earthwork in Odisha. The scrip had gained 20% in the previous session too.
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