Friday, August 03, 2018

Market Mantra
Shares jumped on bargain hunting after a recent sell off. The indices opened higher and firmed up in mid-morning trade. Indices turned range bound in early afternoon trade. The Sensex rose 297.42 points, or 0.80% at the day's high of 37,462.58 in mid-morning trade. At 13:48, the Sensex was trading at 37,484.12 up 318.96  points (+0.86% and NSE was at 11,333.85 up 89.15 points (+0.79%).

Among secondary barometers, the BSE Mid-Cap index was up 0.98%. The BSE Small-Cap index was up 1.11%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was tilted in favour of buyers. On BSE, 1695 shares rose and 702 shares fell. A total of 120 shares were unchanged.

On the macro front, the Indian service sector remained in expansion territory for the second consecutive month in July. The seasonally adjusted Nikkei India Services Business Activity Index posted above the neutral 50.0 threshold for the second consecutive month in July. Moreover, rising from 52.6 in June to 54.2 in July, the latest reading signalled the strongest rate of output growth since October 2016. Favourable demand conditions were cited by panellists as the key factor behind the latest upturn. The data was unveiled during trading hours today, 3 August 2018.

Overseas, Asian stocks were mixed. The mood was cautious amid an elevation in trade tensions between the US and China. The trade war between the world's top two economies intensified midweek after US President Donald Trump raised pressure on China by proposing a higher 25% tariff on $200 billion worth of Chinese imports. China reportedly responded on Thursday, saying that it was fully prepared to defend the interests of the people and free trade.

Investors were also cautious ahead of the July US jobs report due later on Friday, which will give a reading on the health of the world's largest economy and possible clues about the pace of Federal Reserve interest rate rises.

US stocks ended a rocky session decidedly higher on the back of a record rally by Apple that took the iPhone maker to a market cap above $1 trillion, a runup that helped Wall Street set aside bothering trade issues between the US and China.

On the US data front, initial jobless claims rose by 1,000 in the latest week, however they were near their lowest levels since the 1970s. The report comes a day ahead of the highly anticipated July jobs report. Separately, factory orders rose 0.7% in June.

Investors also digested the latest moves from the Bank of England (BoE), which pushed interest rates above their financial crisis lows on Thursday but signalled it was in no hurry to raise them further with an uncertain Brexit on the horizon. BoE raised its main interest rate by 25 basis points to 0.75%, as had been expected.

#Yesterday, the stock of SKM Egg Product Exports Ltd, was recommended to the Premium Members at around Rs.78.1. The stock rose to Rs.81.95 intraday and is now trading at Rs.81. Egg prices have increased by more than a rupee, up to Rs.5.50 apiece, as compared to the same period last year, due to a combination of reasons including the recent truckers strike and increased consumption in northern India. Egg traders said the increased supply to Andhra Pradesh, where the government had increased the number of eggs served under its midday meal scheme, has also contributed to the rise in price.  All the export oriented companies are likely to do well in the cominjg days due to INR depreciation.
For targets  and other details, you either need to trade through my recommended brokerage house or subscribe to my Yearly/Lifetime Premium Services. 

#An Exit from Unitech Ltd (Rs.4.15) was suggested to the Premium Members yesterday. The short term traders who follow my blog,can leave the counter with either no profit or no loss or with minimum loss. The company is beset with a host of problems and the stock is not performing as expected. 

#The scrip of TV Vision Ltd has hit another buyer freeze in the NSE today at Rs.5.4. Similarly, the stock of its group company Sri Adhikari Brothers Ltd has also hit the upper circuits at Rs.6.8. If you remember, I have repeatedly asked the investors to accumulate both the stocks in all market dips. 

#The scrip of HDIL touched Rs.25.35 today. You should look for targets of Rs.31, unless Rs.21 is broken on the upside. The point is that the real estate market all over India is still to gather optimum steam. 

#The stock of Kwality Ltd hit another buyer freeze today at Rs.15.1. I am expecting it to touch Rs.19, in the coming days. Keep accumulating on dips (if any).

#The share of Monnet Ispat and Energy Ltd hit Rs.18.2 and is now trading at Rs.16.7. Since the scrip reached its first target of Rs.17, the investors and traders are requested to book some profits in the counter. 

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