Market Pulse

The stock market continued to trade with small gains in afternoon trade. The BSE Sensex is now trading at 33,878.69 up 41.95 points or  0.12%, while the NSE Nifty is now seen at 10,473.55 up 10.35 points or 0.10%.

The market swung between gains and losses near the flat line in early trade. The Sensex and Nifty, both, hit record high at the onset of the session. Stocks soon slipped into the red and traded with small losses in morning trade. Indices turned positive in mid-morning trade and traded with small gains so far.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.47%. The S&P BSE Small-Cap index gained 1%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was strong. On the BSE, 1,652 shares rose and 893 shares fell. A total of 174 shares were unchanged.

IT stocks were mixed. Wipro (up 0.79%), Infosys (up 0.74%) and HCL Technologies (up 0.29%) gained. Persistent Systems (down 0.69%), Tech Mahindra (down 0.32%) and TCS (down 0.26%) dropped.

Metal and mining stocks nudged higher. National Aluminium Company (up 4.39%), Jindal Steel & Power (up 3.81%), Steel Authority of India (up 1.98%), Hindalco Industries (up 1.87%), Hindustan Zinc (up 0.61%), Hindustan Copper (up 0.49%), JSW Steel (up 0.53%) and Vedanta (up 0.17%) gained. Tata Steel (down 1.06%) and NMDC (down 0.26%) edged lower.

Strides Shasun rose 2.7% at Rs 816.75 after the company said that its wholly owned Singapore subsidiary has entered into definitive agreements with Trinity Pharma, South Africa (Trinity) for acquisition of controlling stake in Trinity. Under the terms of the agreement, Strides Pharma Asia, Singapore will acquire 55% stake in Trinity for a cash consideration of South African Rand 55 million (approximately Rs 27.50 crore).

The current management will stay as minority partner and will continue to run the business under the supervision of Strides. The transaction is subject to customary closing conditions including approval from the South African regulatory authority, Transaction Regulation Panel and expected to close on or before 5 January 2018. The announcement was made during trading hours today, 20 December 2017.

Meanwhile, the Companies (Amendment) Bill, 2017 which seeks to bring about major changes in the Companies Act, 2013, was passed by the Rajya Sabha yesterday, 19 December 2017 by a voice vote. The bill, which was adopted by the Lok Sabha in July, will now have to receive the assent of the President to become law. The amendment seeks to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve ease of doing business in the country.

Overseas, Asian stocks dropped after Senate passed Republican tax bill in 51-48 vote sending the tax cut package back to the House of Representatives for a final vote later in the day.

US stocks ended with modest losses yesterday, 19 December 2017, pulling back from all-time highs. Stocks remained lower as the House of Representatives, as expected, passed tax legislation that would slash corporate rates but will have to vote again today because the current draft doesn't comply with Senate rules.

Today's Calls:

#MBL Infrastructure Ltd today hit the Buyer Freeze in the morning trade, at Rs.25.45 in the NSE. I am expecting itss price to go above Rs.110, within a few months.  Hence keep adding as much as you can in all intraday dips. This is a multibagger stock from my arsenal and hence don't miss it.

#Suzlon Energy Ltd was recommended a buy at around Rs.13.60 in this blog, a couple of days back today toched Rs.14.10. You should keep a stop loss at Rs.13.50 and keep holding or accumulating in intra-day dips. 

#The stock of Reliance Communications Ltd which was recommended only a couple of days back to some of my clients at around Rs.12, today touched Rs.18,45 in the NSE, up more than 37% from yesterday's closing pricxe. I am suggesting all to book some profits and again enter at appropriate time. This is what happens if you join my Premium Service -- you get Jackpots.

#The stock of Orchid Pharma Ltd (formerly Orchid Chemicals and Fertilizers Ltd) made an intraday high of Rs.19.85 today. The non-risk taking investors should exit the scrip near the buy price. However, those who wants to apply high-risk-high-gain strategy can hold the counter with a strict SL of Rs.18.60. The short term targets could be Rs.22-23.

#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...