Monday, December 04, 2017

Market Pulse
Key benchmark indices firmed up in mid-morning trade. At 11:24 IST, the barometer index, the S&P BSE Sensex, was up 134.75 points or 0.41% at 32,967.69. The Nifty 50 index was up 29.40 points or 0.29% at 10,151.20. The Sensex was trading a tad below 33,000 mark after crossing that level in opening trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.07%. The BSE Small-Cap index was up 0.13%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,269 shares rose and 1,115 shares fell. A total of 137 shares were unchanged.

Biocon spurted 9.30% to Rs 488.10 after the US drug regulator approved Mylan and Biocon's Ogivri, biosimilar for the treatment of HER2-positive breast and gastric cancers. The announcement was made after market hours on Friday, 1 December 2017.

Overseas, Asian stocks were mixed as investors were trading cautiously after US stocks declined on Friday, 1 December 2017. US stocks ended lower on Friday, 1 December 2017, after news surrounding former national-security adviser Michael Flynn added an element of political uncertainty into markets. The Dow Jones Industrial Average and the S&P 500 fell 0.2% each while the Nasdaq Composite Index declined 0.4%.

Media reported that Flynn, the former national security adviser, would testify that he was directed to make contact with Russians during the presidential campaign in 2016. Flynn pleaded guilty to lying to the FBI about his post-election contacts with Russia's ambassador to the US.

Meanwhile, the US Senate approved a tax overhaul on Saturday, 2 December 2017, moving Republicans and President Donald Trump a big step closer to their goal of slashing the corporate tax rate and providing temporary tax-rate cuts for most Americans.

Jai Balaji Industries Ltd (Rs.18.20) and Videocoon  Industries Ltd (Rs.16.90) hit their respective buyer freeze -- both the scrips were repeatedly recommended in this blog. 

Subex Ltd (CMP: Rs.8.60, FV: Rs.10), up more than 3%, is trending towards Rs.11-14. The  percentage of Deliverable Quantity to Traded Quantity was 55.78 % on last Friday. Moreover, after the board gave nod to restructuring, the company's fundamentals have started to look good. It is a board managed company like the tobacco behemoth: ITC Ltd (CMP: Rs.254.95, FV: Re.1).
The company has planned to diversify its business and focus on each of its verticals with higher operational efficiencies, which will lead to maximisation of its revenue. The Revenue Maximisation Solutions (the RMS business) would be transferred on ‘ongoing concern’ basis to its subsidiary, Subex Assurance LLP (Subex Assurance), by way of a capital contribution made by the company to Subex Assurance.
The Subex secure and analytics’ solutions and related business carried out by the company (the ‘digital business’) would be transferred to Subex Digital LLP (Subex Digital). After the restructuring the company would directly hold over 99.99% of both capital and share in profit and losses of both Subex Assurance LLP and Subex Digital LLP.
Currently the company belongs to the industry of computers - software. Its total operating revenue is Rs.324.41 crore and equity capital is Rs.506.91 crore for the year ended March 31, 2017.
The stock of Subex Ltd is not performing as expected. Very short term traders, can exit the scrip today at around Rs.8.50-8.65, with no-loss-no-profit or with a slight profit and again enter when the stock gives a closing above Rs.8.80, with good volumes. Others can hold with a SL of Rs.7.50.

Intraday SELL BATA Ltd at around Rs.718, SL: Rs.729,  T: Rs.702-695.  This is a pure chart based call.  Book PART PROFIT around Rs.710.30.

Buy the stock of Simplex Projects Ltd at around Rs.40-40.90 for short term targets of Rs.53-54. The scrip seems to have made a temporary bottom, after its recent correction from a high of around Rs.44. Please buy and keep holding. A meeting of the Board of Directors of Simplex Projects Ltd will be held on Monday, December 11, 2017 at 4.00 P.M. at the Corporate office of the Company at 11/1C/2 East Topsia Road, Kolkata 700046 to consider, the Unaudited Financial Results for the Quarter ended June 30, 2017. This is my new recommended counter to the Premium Group members and to my BMA Wealth Creators Ltd's Clients.

I shall be recommending another good counter this week to the my BMA Wealth Creators Ltd's clients; those who are interested to know the name, before I put it on this blog, can join my Premium Service. You can send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com.

~~ with inputs from Capital Market - Live News
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