Friday, August 03, 2018

Winning Strokes: Think Different
The market jumped on Friday after two consecutive sessions of falls, boosted by banks stocks. The barometer index, the S&P BSE Sensex, rose 391 points or 1.05% to settle at 37,556.16. The Nifty 50 index rose 116.10 points or 1.03% to settle at 11,360.80. Shares got a boost after the weather department forecast a recovery in monsoon in August and September.

Among secondary barometers, the BSE Mid-Cap index rose 0.93%, underperforming the Sensex. The BSE Small-Cap index rose 1.16%, outperforming the Sensex.

The market breadth, indicating the overall health of the market, was tilted in favour of buyers. On BSE, 1771 shares rose and 936 shares fell. A total of 143 shares were unchanged.

The India Meteorological Department (IMD) said on Friday, 3 August 2018, the rainfall as a whole during the second half of the season (August and September) was likely to be 95% of a long period average.

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, European equities were trading higher helped by a rally in banking shares after Royal Bank of Scotland Group announced plans to resume payouts. Asian stocks ended 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.

#The stock of 3i Infotech Ltd was given a buy 1st to Premium Members and also to the followers of this blog only some weeks back at around Rs.3.60. The stock hit the UC in the BSE at Rs.3.94 before closing at Rs.3.92. 

#The scrip of Kwality Ltd hit another buyer freeze today in the BSE at Rs.15.15. The share of this company was recommended to the Premium Members at around Rs.11. Today, I have recommended another small cap counter to the Premium Members, whose name will be disclosed on next Monday. Those  who are interested for Yearly/Lifetime Premium Membership, they can contact me at:

#The stock of SKM Egg Products Exports (I) Ltd was given to the Premium Members yesterday at around Rs.78.10. The scrip hit the UC in the BSE at Rs.81.4, before closing at Rs.80.40. We can expect for targets of Rs.91-92 in the coming days. 

#The share of TV Vision Ltd hit another buyer freeze in the BSE today at Rs.5.51. Its group company Sri Adhikar Brothers Television Network Ltd also hit the upper circuits in the BSE at Rs.6.87. I hope most of you have averaged the scrip and is looking for good returns, going forward. 


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

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