Monday, December 11, 2017

Market Pulse
Key benchmark indices edged higher in early trade tracking positive global cues. The S&P BSE Mid-Cap index rose 0.39%, under-performing the Sensex. The S&P BSE Small-Cap index advanced 0.62%, outperforming the Sensex. The market is not expecting a deep correction, so every dip is a buying opportunity.

Overseas, Asian stocks edged higher following strong finish on the Wall Street on Friday. US equities closed higher on Friday, 8 December 2017, following the release of a stronger-than-expected jobs report. The US economy added 228,000 jobs last month, according to the Bureau of Labor Statistics. The unemployment rate held steady at 4.1%.

Closer home, the breadth, indicating the overall health of the market, was strong. On the BSE, 1,158 shares rose and 309 shares declined. A total of 69 shares were unchanged.

Axis Bank rose 1.39% at Rs 550 after the bank said its shareholders have given an approval to a proposal to raise equity and equity-linked capital of Rs 11626 crore from a set of marquee investors including entities affiliated with Bain Capital Private Equity, other investors advised by Capital Research and the bank's promoter, Life Insurance Corporation of India (LIC). The announcement was made after market hours on Friday, 8 December 2017.

UltraTech Cement advanced 1.73% at Rs 4,225.85 after the company said that its board at a meeting held on 9 December 2017, approved the setting up of a 3.5 MTPA integrated cement plant at Pali, Rajasthan, at an investment of around Rs 1850 crore. Commercial production from the plant is expected to commence by June 2020.

The board also approved a proposal for an increase in the investment limits by registered foreign portfolio investors (RFPIs) including foreign institutional investors (FIIs) from the existing limit of 30% of the paid-up equity share capital upto 40% of the paid-up equity share capital of the company. The announcement was made on Saturday, 9 December 2017.

Power Grid Corporation of India (PGCIL) was up 0.44% at Rs 203.80 after the company said its board at a meeting held on 8 December 2017, accorded approval for two investment proposals aggregating to Rs 268.53 crore. The announcement was made after market hours on Friday, 8 December 2017.

Indiabulls Housing Finance fell 0.22% at Rs 1,204.60. The company said that it has sold its 100% shareholding in Indiabulls Life Insurance Company, presently a non-operational company with no business or license, to SORIL Holdings and Ventures (SHVL), at face value for an aggregate cash consideration of Rs 5 lakh. This transaction between the company and SHVL, being related parties, is at arms' length. The announcement was made on Saturday, 9 December 2017.

Among other news, Gujarat recorded a polling of 68% in the first phase of assembly elections for 89 assembly constituencies held on Saturday, 9 December 2017. The second phase polling will take place on 14 December 2017 in 93 assembly constituencies. Counting of votes will take place on 18 December 2017. The Gujarat assembly has 182 seats.

Today's Calls:
#P C Jewellers Ltd recommended at around Rs.396, last Thursday, reached both the targets (intraday high Rs.432.70).  Book Full Profits.

#Gujarat Narmada Valley Fertilizers & Chemicals Ltd recommended last Friday at Rs.465-467. Book PARTIAL PROFIT around Rs.473 (Intraday high: Rs.474.30).

#INTRADAY Buy Bata Ltd at around Rs.740, SL: Rs.729,  Target: Rs.753. Exit at the CMP of Rs.741-742. Call Closed.

#Jai Balaji Industries Ltd (Rs.21) has hit the upper circuits, on the news that most lenders have sold loans of BILT and Jai Balaji to ARCs. Hereto, this stock which was recommended around Rs.12-14, has given superb returns to the investors, throwing mud on the faces of naysayers.

#Buy Shilipi Cables Ltd at around Rs.13.30, for targets of Rs.17-19. After the positive news on Jai Balaji Industries Ltd, the market is optimistic about the debt restructuring of this company.

#Buy Aurobindo Pharma 700CE (CMP: Rs.15.50) on intraday declines at around Rs.15.0-14.50, SL 12; T: Rs.20-23. Book PARTIAL PROFIT at around Rs.17.75....

#B F Utilities Ltd which I recommended at around Rs.130, today touched Rs.485. Now if B F Utilitity Ltd is moving up on the government of India's auction buzz, can Suzlon Energy Ltd (Rs.14) be far behind? Accumulate the shares of Suzlon Energy Ltd on every intraday decline. Or the investors should buy and hold.
Meanwhile, Inox Wind expects order inflows to normalize from next quarter (Q3) onwards and execution to pick up from Q4. Suzlon Energy pegs the market to expand to about 6,000 megawatts (MW) in the next fiscal year. For perspective, India is estimated to add 1,000-1,500 MW of wind capacity this fiscal year, compared to 5,400 MW last year. India has lined up an ambitious plan to award 100 gigawatts (GW) of solar and wind contracts by March 2020.
Also, there are news reports that State-run Solar Energy Corporation of India (SECI) has floated tender for setting up 2 GW inter- state transmission system (ISTS) connected wind power capacities across the country. The company has invited proposals for setting up of ISTS connected Wind Power Projects in India, on 'Build Own Operate' basis for an aggregate capacity of 2000 MW, as per the tender document. Thus the Process has already commenced......
Advantage Suzlon Energy Ltd (Rs.13.85), B F Utilities Ltd (Rs.478) and Inox Wind Ltd (Rs.145.55)....

#The stock of Unitech Ltd (Rs.8.35) which was recommended repeatedly in this blog starting from around Rs.5-6, is buzzing since yesterday, after the media reports came  out saying that the National Company Law Tribunal (NCLT) has allowed the government of India to appoint 10 directors on the board of debt-ridden realty firm Unitech Ltd. However, the stock price which touched Rs.8.70, may not go too further as nothing on the table happened, as of now. The stock hit the 20% yesterday on positive sentiment built up. Therefore, book profits before the euphoria dies down and then wait for the dips to enter again, just as you did in case of Jai Balaji Industries Ltd.

#The Risk taking traders can buy Uttam Galva Steels Ltd at around Rs.23.70, for short term targets of Rs.29-31. Bankers are looking to speed up the resolution of 28 accounts including Videocon Industries Ltd, Jaipraksh Associates and Uttam Galva Steel as a December 13 deadline looms. The resolution for Uttam Galva Steel, BILT, Jai Balaji, Jayaswal Neco, Soma Enterprise and Anrak Aluminium is either done or is in the final stages, bankers said. Lenders said that in some of these cases banks have either sold the loans to asset restructuring companies (ARCs) or settled them with the promoters.

#Intraday Buy Zinc at around Rs.199.80, SL below Rs.198.90, T: Rs.201.50.

#Intraday Buy Copper at around Rs.425, SL below Rs.423, T: Rs.428..

Nifty 50:
#Demand Levels: 10235/10195
#Suppy Levels: 10300/10335

Bank Nifty
#Demand Levels: 25266/25230
#Supply Levels: 25400/25500

~~ with inputs from Capital Market - Live News
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