Tuesday, November 14, 2017

Videocon Industries Ltd hit the buyer freeze today, with reasonably good volumes at Rs.14.15. Recently, there were media reports that Everstone is all set to acquire the Kenstar home appliances brand from the company.  Moreover, one of its subsidiaries, Videocon Telecommunications Ltd (VTL) is falling back on its old skill as electronic hardware maker to climb out of its debt trap. It now wants to manufacture and market surveillance equipment like webcams and is targeting a revenue of Rs.1,050 crore by 2021. The parent company Videocon Industries had invested Rs 7,500 crore in Videocon Telecommunication Ltd (VTL) by the end of FY17. I am expecting few more upper circuits in the coming days.

Jai Balaji Industries Ltd closed at Rs.13.65, up 1.87% in the NSE. The steel sector is all set to do well, due to NDA government's stress on infrastructure projects.

Shilpi Cable Technologies Ltd (Rs.13.40) is in the highly  oversold zone and a bounce is expected very soon. The company is functioning as usual, and perhaps it is the work of the operators. I think the regulators should take note of the same and take effective measures to stop stock manipulation by vested groups.

Today, Gitanjali Gems Ltd (Rs.71.25) reached its first target of Rs.72 (intra-day high Rs.72.90). 3rd and 4th quarters are generally good for the gems and jewelry sector. 

Anil Ambani's flagship telecom venture, RCom Ltd today closed below a key support level at Rs.11.55. I have already  prescribed an exit from the stock at around Rs.17-21, when it rose due to some spot news. I feel it is heading towards Rs.9, in the coming days.

HDIL today closed at Rs.59.55 after moving to Rs.60.80, intra-day. The stock is finding difficulty to closed above Rs.63. The short term traders can book profits and wait for a close above Rs.62.

On the macro front, data released by the NDA government during market hours today, 14 November 2017 showed that the annual rate of inflation, based on monthly wholesale price index (WPI), jumped to 3.59% (provisional) for the month of October 2017 as compared to 2.6% (provisional) for the previous month and 1.27% during the corresponding month of the previous year.

Data released by the government after market hours yesterday, 13 November 2017 showed that India's inflation based on consumer price index (CPI) has accelerated to 3.58% in October 2017, mainly driven by higher prices of food and fuel. In September, the CPI inflation was 3.28%.

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