Wednesday, August 01, 2018

Market Mantra
Key benchmark indices were trading higher in early trade on positive global cues. At 10.26 am, the BSE Sensex was trading at 37,645.53 up 38.95 points or 0.10% while NSE was trading at 11,380.40 up 23.90  or 0.21%.

Among secondary barometers, the BSE Mid-Cap index was up 0.50%. The BSE Small-Cap index was up 0.39%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was strong. On BSE, 769 shares rose and 302 shares fell. A total of 43 shares were unchanged.

The Reserve Bank of India (RBI) will conclude its two-day monetary policy meeting today, 1 August 2018. The resolution of the Monetary Policy Committee (MPC) will be unveiled at 14:30 IST today, 1 August 2018. RBI raised its benchmark policy repo rate by 0.25% to 6.25% in its second bi-monthly monetary policy for 2018-2019 on 6 June 2018.

Overseas, most Asian stocks edged higher, taking cues from the positive session seen in the US market following news that the US and China may restart official talks about their months-long trade dispute.

US stocks closed higher Tuesday, as investors continued to digest an onslaught of quarterly earnings reports, with the vast majority beating expectations. But headline news on trade continued to drive markets.

#Buy Unitech Ltd at around Rs.4.25 for short term targets of Rs.5.5-7. According to the Simply Wall St, Unitech Ltd’s level of debt is appropriate relative to its total equity, at 36.91%. This range is considered safe. At the current liabilities level of ₹168.08B liabilities, it seems that the business has been able to meet these obligations given the level of current assets of ₹232.50B, with a current ratio of 1.38x. Generally, for Real Estate companies, this is a reasonable ratio since there is a bit of a cash buffer without leaving too much capital in a low-return environment. In the last hearing, the honourable Supreme Court of India had directed the committee it had set up in the Unitech case, to speedily auction over 600 acres of unencumbered land properties of the embattled firm located in Agra, Varanasi, Bengaluru, and Sriperumbudur near Chennai so that money is refunded to homebuyers. This is expected to substantially cut the debts of the company. Unitech Ltd recently sold its Bangaluru land to Devas LLP at Rs.49 crore. The company has deposited Rs.42.73 crore in court after tax deduction at source (TDS). It had already deposited Rs 5 crore, legal sources present at the hearing say.In this slowly and slowly the company is coming out of the debt fiasco. The stock price is getting hit due to wrong reasons. I hope by October, '18, the stock should trade near Rs.7 levels.

#Kwality Ltd has hit another buyer freeze today in the Rs.13.75 in the NSE. Recently, there were some positive news in the media, which is propelling it to rise. The scrip was recommended to the Premium Members on this Sunday to be bought on Monday. 

#Buy the shares of 3i Infotech Ltd at the CMP of Rs.3.60 for short term targets of Rs.6-6.3. The company is likely to benefit from the depreciating INR as it has huge overseas presence. For example in Q1FY19, the tech giant Infosys Ltd's  Dollar revenue grew by 0.9% at $2,831 million versus $2,805 million (QoQ). In Q1FY19, the consolidated revenue of 3i  Infotech Ltd rose to Rs.241.98 crore versus Rs.239.31 crore though profit fell marginally to Rs.15.19 crore versus Rs.16.88 crore on YoY basis.
Recently, 3i Infotech Limited, the global Information Technology company launched Maggie – a Virtual IT Engineer. Maggie is part of cognitive service desk that promises to help contact centres to address hundreds of user requests simultaneously of the digital-age users anytime, from anywhere.

#The shares of both TV Vision Ltd (Rs.4.95) and Sri Adhikari Brothers Television Network Ltd (Rs.6.20) hit their respective buyer freezes today. The stocks were repeatedly asked to be accumulated in this blog. I have already given the short term targets for both the scrips, in my last blog post. 

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

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