Wednesday, November 29, 2017

Market Pulse
Key benchmark indices nudged higher in early trade. Stocks hovered in positive zone in morning trade. The S&P BSE Mid-Cap index was up 0.24%. The S&P BSE Small-Cap index was up 0.55%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,445 shares rose and 957 shares fell. A total of 135 shares were unchanged.

Overseas, Asian stocks were mixed as Chinese equities added to declines and a North Korean missile test overshadowed an overnight surge in US equities. US stocks rose to records yesterday, 28 November 2017 on progress towards passage of US tax cuts and a benign confirmation hearing with Federal Reserve Chair nominee Jerome Powell.

The Senate Budget Committee approved the Senate's tax plan on Tuesday, bringing the upper chamber closer to a floor vote, which is expected to take place Thursday. Meanwhile, during his testimony, Powell said that current regulations on the financials sector are tough enough. He also said he supported the tailoring of some regulations to ease the burden on small banks.

On the data front, the Conference Board's consumer-confidence index jumped to 129.5 in November, marking a 17-year high. The advanced US trade deficit in goods rose 6.5% to $68.3 billion in October. Separately, home prices rose at their fastest pace in more than three years in September.

Suzlon Energy Ltd tanked to Rs.14.60, below a key support level; after a SELL was initiated for the short term punters, in the morning following cooling down of crude oil prices. However, long term investors can hold with a stop loss of Rs.13.50.

Morning Call, Bharati Defence and Infrastructure Limited (BDIL) at around Rs.8, hit the buyer freeze. There were earlier some positive media reports on the company.

If you have missed  BDIL, then try Subex Ltd at around Rs.8.60, for targets of Rs.12-15. Subex Ltd provides software products and related services to communications service providers across the world. The company also provides implementation and customization, support services, managed services and sub-contracting services. Its segments include It operates across the Americas; Europe, the Middle East and Africa and Asia-Pacific and rest of the world.
In August, this year, there were media reports that its board has given its nod for the company’s restructuring scheme. The restructuring is a part of overall “Subex 3.0” strategy to achieve the objectives which are: segregate company’s business into separate verticals, facilitating greater focus on each vertical, enhance the ability of the company to enter into specific partnerships and to attract strategic investors at respective business levels. It's chief aim is to de-risk various business verticals from each other and enhance value for the shareholders of the company.
As of 2016-17, Subex had $115 million in debt out of which $95 million was equitized and the remaining $20 million has been paid off. "The worst is behind us. We have recapitalized the firm and prepared the company for growth," said Anil Singhvi, the non-executive chairman of telecom products firm Subex. Mr.Singhvi is also the chairman of Ican Investments Advisors and was an adviser to Reliance ADA Group for two years.

Jai Balaji Industries Ltd hit another buyer freeze in the NSE at around Rs.15.80. The stock was repeated recommended in this blog since the last few weeks.

You can also BUY Hexaware Technologies Ltd on T+1 basis at around Rs.334-335, SL: Rs.328,  T: Rs.344. This is a pure chart based call.

The Indian stock markets would continue to remain buoyant in  absence of viable investment opportunities, following a near defunct real estate market and also tepidity persisting in the precious metals sector. The investors and traders are suggested to look for good stories and invest with strict stop loss in mind. 

Today, there is net connectivity problem with Reliance Jio and hence it took a hell lot of time to update the morning inputs. I now feel that instead of Reliance Jio, I should gone for other other service providers like Bharti Airtel or Idea Cellular, as RJio has nagging problems in the Western Suburbs of Mumbai, with a chequered customer care service further making the things even worse.

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