Winning Strokes: Think Different

Domestic stocks logged sharp gains on first trading day of the week on strong buying demand in index pivotals. The barometer index, the S&P BSE Sensex, surged 718.09 points or 2.15% to settle at 34,067.40. The Nifty 50 index surged 220.85 points or 2.20% to settle at 10,250.85. The Sensex regained the psychological 34,000 level.

Investors took cues from the Reserve Bank of India (RBI)'s announcement that it will buy government bonds in November as it seeks to inject liquidity into the market. The announcement eased worries about a credit crunch after defaults at a major infrastructure financing company, IL&FS.

Based on an assessment of the durable liquidity needs going forward, RBI has decided to conduct purchase of government securities under open market operations (OMOs) for an aggregate amount of Rs 40,000 crore in the month of November 2018. The auction dates and the Government securities to be purchased in the respective auctions would be communicated in due course. The OMO amount stated above is indicative and RBI retains the flexibility to change it, depending on the evolving liquidity and market conditions, RBI said in a statement on 26 October 2018. I had mentioned earlier that OMOs will be conducted to induce liqudity into the system. 

The Sensex surged 718.09 points or 2.15% to settle at 34,067.40. The index hit high of 34,154.60 and low of 33,341.80 during the day.

The Nifty 50 index surged 220.85 points or 2.20% to settle at 10,250.85. The index hit high of 10,275.30 and low of 10,020.35 during the day.

Broader market surged. Among secondary barometers, the BSE Mid-Cap index rose 2.8%. The BSE Small-Cap index rose 2.06%.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1816 shares rose and 767 shares fell. A total of 170 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 4.21%), the S&P BSE Realty index (up 3.71%), the S&P BSE Captal Goods (up 3.55%) outperformed the Sensex. The S&P BSE Auto index (up 1.71%) and the S&P BSE FMCG index (up 0.99%) underperformed the Sensex.

Pharma shares gained. Cadila Healthcare (up 3.42%), Cipla (up 5.06%), Dr Reddy's Laboratories (up 5.44%), Glenmark Pharmaceuticals (up 1.99%), Lupin (up 3.72%), Sun Pharmaceutical Industries (up 3.43%), GlaxoSmithKline Pharmaceuticals (up 4.48%), Aurobindo Pharma (up 6.93%) and Wockhardt (up 11.37%) advanced. Alkem Laboratories (dow 1.08%) declined.

Divi's Laboratories jumped 14.91% after net profit surged 92.31% to Rs 397.65 crore on 47.77% rise in total income to Rs 1365.05 crore in Q2 September 2018 over Q2 September 2017. The result was announced on Saturday, 27 October 2018. I had earlier asked all to exit the short call on the scrip at the cost price, after it failed to perform as expected. 

On the macro front, India's exports rose by 9.8%, in financial year 2017-18, which is the highest rate of growth in six years. This positive growth in exports has taken place at a time when there is a lot of negative headwinds globally. This was stated by Union Minister of Commerce & Industry and Civil Aviation, Suresh Prabhu, at the Export Summit 2018 organised by Confederation of Indian Industry in New Delhi today. The Minister further stated that Commerce Ministry is working on a strategy to revitalize India's exports and is working with key exporting ministries to formulate sectoral, commodity and territory specific export strategy. Meetings with concerned ministries have already been held where different ministries and stakeholders have been consulted after which a matrix of specific action points have been prepared sector wise, commodity wise and territory wise.

Suresh Prabhu further stated that he is personally monitoring the progress and regular meetings are being held with sectoral ministries, export promotion councils and exporters. Certain issues which were affecting growth of exports have been specifically taken up with Department of Revenue and Ministry of Environment. The Commerce Minister also said that the soon to be unveiled agri export policy will give a major boost to the agricultural sector and will pave the way for Indian farmer's income to be doubled. India produces 600 MT of agricultural produce and has the capacity to export the excess production to the world.

On the data front, the Commerce Department reported that the US economy grew 3.5% in the third quarter. Second-quarter growth held at 4.2%. Meanwhile, the University of Michigan's consumer sentiment index came in at 98.6.

#Gravita India Ltd recommended both to the Paid and Free Groups and in Twitter at around Rs.67-68, hit the buyer freeze at Rs.73.10 in the NSE. It however closed at Rs.72,95 in the NSE, with a volume of 371,942. As of June, '18, Gravita India Ltd was having an order book of approximately Rs. 260 Crores in hand for Lead, Aluminium and Plastic products. Sheath Materials Market is Growing Exponentially: One of the major companies operating in the global Sheath Materials market is Gravita India Ltd.

#The scrip of Eros International Media Ltd today touched Rs.75.40 in the NSE before closing at Rs.71.85. Yesterday, it was reiterated a buy in Twitter, after its excellent Q2FY19 results. Buy on dips for the targets mentioned earlier. 

#Today, the stock of Ishan Dyes & Chemicals Ltd was recommended to the Premium Members and to those on Twitter and Facebook at around Rs.47. The scrip touched Rs.48.80 before closing flat. The company is into the manufacturing of H-acid, which is an important dye Intermediate extracted from naphthalene. According to a report in Dalal Street Investment Journal, H-acid is used in manufacturing of large number of black dyes, Azo dyes and pigments which are then used to dye paper, textiles etc. It major applications are industrial, food, cosmetic, pharmaceutical. H-acid is the most polluting industrial effluent that generates 50 kg of waste for every one kg of usable material. It is toxic and non-biodegradable causing severe land, air and water pollution. Having considered the ill-effects of H-acid manufacturing process, most developed countries of the world gradually have phased it out already.  However, the demand for H-acid continues as there is no other alternative to its uses. For this reason, the manufacturing was outsourced to countries like China and India where environmental norms are not as strict. India is the second largest manufacturer of H-acid globally after China with majority of production being done in Gujarat & Maharashtra by SMEs. This industry is witnessing a good time, following China's crackdown on local industry to lower pollution, which has resulted in irregular supply and thus doubling of prices of H-acid. Buy the scrip and keep holding for targets around Rs.59-60, from where it fell.

#A buy call was initiated on Bank Nifty, last week which surged today and closed at 25,085.55 up 583.10 points or 2.38%. I am having a target of 27000, which will give you decent returns on your investment 27000 call which is now trading at Rs.36.50, up Rs.17.80 or 95.19% from Friday's closing price. Follow me on Facebook and Twitter, especially the latter to make decent money from the equities. 
If you have made some money from my calls, then you can always think of sharing a part of your profit, to Support Me and My Blog. You can also form a group, of say of 250 people (investors/traders/learners, etc) each contributing Rs.500 (five hundred) per month and come to me -- I am always welcome for such mechanisms, through which I can deliver my expertise and my more than 2-decade old experience to you, at a minimum price tag. I don't think Rs.500 per month would be ab big deal for you; but for that you need to take an initiate to form a team.

#I Reiterate a buy on the scrip of Tamil Nadu Petroproducts Ltd at the CMP of Rs.37.95. The Net Profit of Tamil Nadu Petro Products rose 66.78% to Rs 19.33 crore in September 2018 quarter as against Rs.11.59 crore in Q2FY18. Sales rose 41.55% to Rs 333.71 crore in September 2018 quarter as against Rs.235.75 crore during September 2017 quarter.

#Nifty as expected climbed up 221 points (2.2%) to close at 10250, in one of the biggest rally since October 12. There was all round buying interest in the market after a long time on account of impressive quarterly results by some bellwether companies, 10-Year Bond Yield's fall to 2-month's low and recovery in the global markets also added to the momentum. 

PSU Bank Index (up 8%) was the biggest gainer today since October 2017 on account of fall in 10-year G-Sec Yield after the RBI announced OMOs worth Rs.400 billion. 

If you remember, I had mentioned last week on Twitter about NOT taking any fresh short position in Nifty_Future, even though the Spot_Nifty broke the decisive 10100 mark on the downside. Instead I asked all to consider a BUY on Bank Nifty, in view of a report that "Green shoots have started to emerge..".
Meanwhile, the private bank major, ICICI Bank surged 11% to close at Rs349, after announcing strong quarterly results. Moreover, there was short covering, bargain hunting in the mid-cap and small cap stocks due to decline of 30-50% from their recent peaks. 

NBFC stocks, which were hammered during the last few weeks following the investors' concerns on their fundamentals, gained on hopes of the Government and RBI's initiatives to increase liquidity. There were also media reports that the GOI could hasten the bank re-capitalization process, in order to give a lifeline to the NBFCs.

#If you have lost money earlier, don't worry, come with fresh funds, I will help you recover your losses and then come out victorious. I am now applying different techniques to cut your losses and emerge as gainers. Also, life-time discounted offer at only Rs.2000 per year is going on, which will continue till 31st December, 2018. This is just one time investment you need to do and then remain free from any subscription charge for the next 30 years.

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