Thursday, February 08, 2018

Yesterday, the Indian stock market closed the lackluster trading session with modest losses. The barometer index, the S&P BSE Sensex, fell 113.23 points or 0.33% to settle at 34,082.71. The Nifty 50 index fell 21.55 points or 0.21% to settle at 10,476.70. Market opened with modest to strong gains on bargain hunting after a recent slump, but failed to hold-on to the gains as the session progressed. Mixed Asian stocks also hampered investors' risk appetite as domestic indices struggled for direction. The Sensex and the Nifty, both hit their lowest closing levels in more than one month.

Among key developments, the Reserve Bank of India (RBI), at the conclusion of its two-day Monetary Policy Committee (MPC) meeting today, 7 February 2018, left the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6%, on the expected lines. Consequently, the reverse repo rate under the LAF remains at 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate at 6.25%.

The decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

Overseas, European stocks edged higher after recent global markets turmoil. Asian stocks closed mixed. US stocks closed higher on 6 February 2018, albeit with wild swings witnessed in the day's trading, after two huge sell-offs in a row. The wild moves were attributed to a combination of factors like interest-rate fears, computer-driven trading and the obscure volatility funds that use leverage.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.43%. The S&P BSE Small-Cap index rose 1.95%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on the BSE. 1,988 shares advanced and 786 shares declined. A total of 94 shares were unchanged.

The total turnover on BSE amounted to Rs 4382.22 crore, compared with the turnover of Rs 5349.37 crore registered during the previous trading session.

Among private sector banks, HDFC Bank (down 1.37%), Axis Bank (down 0.96%), IndusInd Bank (down 0.52%) and City Union Bank (down 0.19%), edged lower. Kotak Mahindra Bank (up 0.03%), Federal Bank (up 0.38%), ICICI Bank (up 0.45%) and RBL Bank (up 1.11%), edged higher.

Most realty stocks advanced after the RBI kept the policy rates unchanged. Unitech (up 4.24%), Godrej Properties (up 3.94%), Anant Raj (up 2.50%), Phoenix Mills (up 2.19%), Indiabulls Real Estate (up 2.11%), Oberoi Realty (up 2%), Sobha (up 1.80%), Housing Development and Infrastructure (HDIL) (up 1.68%), Peninsula Land (up 1.13%), Prestige Estates Projects (up 0.62%), Parsvnath Developers (up 0.24%), DLF (up 0.13%) and Omaxe (up 0.13%), edged higher. Mahindra Lifespace Developers (down 0.75%), Sunteck Realty (down 2.57%) and D B Realty (down 4.98%), edged lower.

Purchases of both residential and commercial property are largely driven by finance.

The introduction of the long term capital gains (LTCG) tax on equities exceeding Rs.1 lakh at 10% in the Budget 2018, worries of higher retail inflation and subsequent hike in interest rates by the central bank going forward amid slipping fiscal targets, increase in minimum support prices (MSPs) for agriculture crops, rising global crude oil and commodity prices coupled with the concerns of inflation going northwards in the advanced economies like US, especially after a stronger-than-expected jobs report from US for the month of January, whacked investors' sentiment across the globe.

#3i Infotech Ltd touched Rs. how it could not cross the resistance zone of Rs.6.3-6.8. However,  Golden Cross has occurred on EOD Chart and the traders can expect the next targets of Rs.6.90 and Rs.7.30 within a short term. Those who have purchased at higher levels should average it, to reap significant gains in the coming days.

#A couple of days back, my associated brokerage house: BMA Wealth Creators Ltd gave buy call on Nifty CE10700, at Rs.48-49, when it zoomed to around Rs.108.90 intra-day.  Yesterday also it opened at Rs.108, but later settled at Rs.59.50, still much higher than the buy price. 
Join my associated Brokerage House, to get such scintillating Calls and stay ahead  of others. Demonetization is gone and is  history, and if you had made losses due to Narendra Modi's earlier stupidity, then this is the best chance to make up for the gains. 
Don't bother much about brokerage when higher gains can be made, by investing in some of the company's calls. Some people are too bothered with brokerage, that is why they end up slow trading platform and zero help in terms of research reports and intraday helps. This is a PENNY WISE, POUND FOOLISH FORMULA, as I have always advocated for a FULL brokerage platform rather than all those Budget brokers; the latter is best suited for experts only or who have multiple demat accounts.  

#I had earlier given a SELL call on the "Marwari" (Rajasthan based) company Urja Global Ltd, around Rs.11.30, when the speculators and punters were madly after this junk. The stock has already corrected by more than 30% from there and closed at Rs.7.84 on the NSE. The scrip of Urja Global Ltd has broken a major support at around Rs.8.4 and the next downward targets are Rs.7.40 and Rs.6.50. 
This fundamentally wear stock with FACE VALUE of Re.1, rose up insanely due to operators who made rosy videos about its ELECTRIC VEHICLE story and posted on the YouTube; which fooled the gullible traders and investors of DALAL STREET. But when there is no infrastructure at present for such vehicles both in Asia and Africa, where the company is touted to have huge future markets, it is just too much illusory and highly speculative to buy this stock at any price above Rs.2-3 (Rs.20-30 on Rs.10, Face Value). Stay away!!

#I had given a SELL on the speculative scrip, GVK Power and Infrastructure Ltd near its recent high of around Rs.27, when a south based BULL spun BULLISH stories about the company laden with too much debt and still has no clue as how to cut  it to manageable size. The scrip has already corrected by around 30%from there and closed at Rs.18.70 in the NSE, yesterday. I feel if the share breaks the support at around Rs.18.4, it can go down to Rs.16 and Rs.13.5. Stay away!!

#Those who had not booked profit in NDTV Ltd, can average the scrip at around Rs.42-43 or take fresh positions. With the chance of UPA coming to power in 2019, increasing everyday, due to some thoughtless policy blunders of the current NDA Government; this stock could become GOLDEN GOOSE of tomorrow. Stay invested!!

#Regarding Nifty, I would say as long as 104000 holds, the bulls will not have to worry much. The application of LTCG Tax, introduced by the FM will  not hurt much of the small investor community most of whom do short term trading and is already under the STCG Tax net. The LTCG TAX, which attempts to generate additional finance for the NDA government to boost up its rickety coffers and also to check the markets going too much CRAZY will hurt mostly the FIIs and Large Mutual Fund/ Share holders, like Rakeshesh Jhunhunwala or Ramesh Damani or Porinju Veliyath. The FIIs have been on a sell mode since the budget day and yesterday also they hawked shares worth Rs.1022.5 crores while the DIIs bought shares of value Rs.461.19 crores; as small mutual holders will not be affected much. Therefore, too much fear on this front is uncalled for.....and the market will slowly adjust to the new reality, as the government goes on spending mode during the next few months to give a forward kick to the depleting demand, following Demonetization and hurried implementation of the GST.

#I  have few SCRIPS which can give good returns over a period. Those who are willing to invest at around Rs.2 lakhs and share a part of the profit can send me a mail at; or PM through my Facebook Profile. I feel it would NOT be an exaggeration to say here that: it be very difficult to make money on a consistent basis by simply following this blog - because there are lot of things, which are NOT mentioned here either due to paucity of time or some other reasons, but are send to the Premium Clients on appropriate time. Therefore, take professional help, as and when required, if you are really serious about making money from the Indian bourses. 
Also, lot of small investors whisper me behind camera that they are interested in joining my information service, but high subscription fees is what deters them. In this context, I would like to send this simple message to them: Don't bother too much about the current price tag of Rs.18000 per year for the Premium Service, if you are small investor. This price tag is for those who can pay or who have the ability to pay. In earlier too lot of small investors have joined me, giving only a fraction of what i demanded from the rich clients. 
Come to me, I will give a discount on that, so that you are comfortable with it and can be a part of me and my investing ideas. Tell me, what more I can do....since I also subscribe to many services which keeps me updated. Everyone has a limit and it is always prudent to take a 2nd opinion on serious issues like EQUITY INVESTING.

.~with inputs from Capital Market - Live News

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