Thursday, December 21, 2017

Market Pulse
Key indices continued to hover between gains and losses near the flat line in early afternoon trade amid mixed Asian cues. The BSE Sensex is now trading flat at 33,776.4 up marginally 0.90 points, while Nifty is now seen at 10,450.70 up 6.50 points or 0.06%.

The market opened higher and swung between gains and losses near the flat line in a lackluster session of trade so far.

The S&P BSE Mid-Cap index rose 0.6%. The S&P BSE Small-Cap index gained 0.81%. Both these indices outperformed the Sensex.

The market breadth indicating health of the market was strong. On the BSE, 1,569 shares rose and 880 shares fell. A total of 175 shares were unchanged.

Most realty stocks extended recent gains. D B Realty (up 20%), Unitech (up 15.25%), NBCC (up 0.3%), Godrej Properties (up 0.13%), Housing Development & Infrastructure (HDIL) (up 0.63%), and Oberoi Realty (up 0.07%) edged higher. DLF (down 0.22%), Sobha (down 0.83%), and Indiabulls Real Estate (down 0.23%) declined.

Shares of power generation and power distribution companies gained. NTPC (up 0.87%), Torrent Power (up 0.34%), NHPC (up 0.18%), Tata Power Company (up 0.05%), Adani Power (up 0.14%), Reliance Infrastructure (up 1.57%) and Reliance Power (up 0.88%) gained. Power Grid Corporation of India declined 0.2%.

Hero MotoCorp rose 1.25% after the company said it unveiled three new motorcycles - the 125cc Super Splendor, the 110cc Passion PRO and the 110cc Passion XPRO. There will be a phase-wise launch of the three motorcycles in the market, starting January 2018. The announcement was made during market hours today, 21 December 2017.

Cadila Healthcare rose 2.38% after Zydus Pharmaceuticals (USA) Inc., a wholly-owned subsidiary of the company received the final approval from the US Food and Drug Administration (USFDA) to market Nifedipine extended-release tablets USP in strengths of 30 milligram (mg), 60 mg and 90 mg.

The drug is used to treat hypertension (high blood pressure) and angina (chest pain). It will be manufactured at the group's formulations manufacturing facility at Special Economic Zone (SEZ), Ahmedabad. The announcement was made during market hours today, 21 December 2017.

Overseas, Asian stocks were mixed. The Bank of Japan kept monetary policy steady despite growing signs of strength in the economy. In a widely expected move, the BOJ maintained the 0.1% interest it charges on a portion of excess reserves that financial institutions park at the central bank.

UK consumer sentiment worsened again in December as Britons turned more pessimistic about their finances, a survey published showed. The long-running barometer of consumer confidence, conducted by market researcher GfK U.K. for the European Union's executive, dropped by one point in December and stood at minus 13, the lowest reading in four years.

US stocks closed marginally lower yesterday, 20 December 2017, as congressional Republicans sent tax-cut legislation to President Donald Trump for his signature. The House of Representatives yesterday, 20 December 2017 passed a historic tax bill, which they voted on for the second time due to a technical irregularity the day before. The bill includes a reduction in the corporate tax rate from 35% to 21%. The Senate passed the overhaul early on Wednesday.

Existing-home sales rose to a 5.81 million seasonally adjusted annual rate in November, the National Association of Realtors said. The number came in well above expectations.

Today's Calls:
#MBL Infrastructure Ltd hits another buyer freeze today at Rs.26.55 in the NSE. The stock is expected to move above Rs.110 in the coming days; hence accumulate in intraday declines (if any).

#With buoyancy coming in the steel sector, many steel companies are moving up, including my recommended SAIL, Tata Steel and Jai Balaji Industries Ltd. Jai Balaji Industries Ltd which I recommended a couple of months back at around Rs.12-14, today crossed a major resistance and is now trading at Rs.23. If this momentum is sustained then we can look forward for targets of Rs.27-29. The first and 2nd targets of Rs.17 and Rs.22 have already been achieved.

#Recently recommended HDIL at around Rs.53 today touched Rs.57.45 (1st target given was Rs.57). If it manages to close above Rs.57.50, then can again look for Rs.61-62. However, those who have bought earlier should book some profits and keep holding the rest with a SL of Rs.56.

#I have taken some shares of one of my old favourite Tantia Constructions Ltd (CMP: Rs.1815) at around Rs.18. Some of my clients have also taken position, considering the PM, Narendra Modi's recent announcement of around Rs.90,000 crore, package for the North Eastern Region. 

#Suzlon Energy Ltd recommended repeatedly on this blog at around Rs.13.60, today made an intraday high of Rs.14.60. I am hoping the scrip price to touch Rs.17-18, by the end of this month as the crude oil price is near its yearly high of $65 per barrel. Also, the much waited auction in the renewal energy sector has commenced. So, accumulate with a SL at Rs.13.40.

#Dena Bank Ltd recommended recently in this blog at around Rs24.20 today made an intraday high of Rs.24.40 in the NSE. If it manages to close above Rs.24.80, then we can look forward for a target of Rs.27. My earlier recommended bank stocks like SBI and PNB gave good returns to the investors.

#The scrip of Reliance Communications Ltd (RCom -- Rs.18.40), which was recommended LAST WEEK to some of my clients at around Rs.12 made an intraday high of Rs.19.60, intraday today. What are the targets? Join either my Premium Services or trade through my recommended brokerage house to stay ahead of others: BMA Wealth Creators Ltd.

#Unitech Ltd (Rs.7.95) today made an intraday high of Rs.8.45, after some positive news came out in the media. The short term traders are suggested to book some profits and wait for the for dips for re-entries.

#Today I have recommended Simplex Projects Ltd to some of my clients at around Rs.38-39. The scrip hit the buyer freeze today in the NSE at Rs.39.65. Congratulations to those who have invested in the scrip today.

##I am looking for someone or a business concern who can invest around Rs.5-10 lakhs (or more if possible) in a well Researched Scrip. We would hold it for one year (no trading in the account only pure delivery based holding - this minimizes lot of risks) or less or more, depending upon the prevailing situations. The profits could be shared in the ratio of 75:25 between you and my firm. The returns could be mind-boggling and the risks will be minimum as there will be very little trading and exit will be done at stop losses; further minimizing the risks associated with too much volatility with the mid and small caps. 
Say if we get Rs.50 lakhs on an investment of Rs.10 lakhs then the profit to be shared will be Rs.10 lakhs only. So, your total investable capital becomes Rs.40 lakhs, and that too with minimum (read almost zero) trading. This money could be further invested in another strong delivery based counter, and the process could continue. 
Those who have lost money earlier can try this new formula with fresh funds at their disposals. This new method hereto  is going fine with most of my new clients. If anyone is interested please do send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com. 

~~with inputs from Capital Market - Live News....
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