Winning Strokes

Yesterday, the BSE Sensex closed at 58,576.37 down 388.20 points (-0.66%), the Nifty ended the day at 17,530.30 down 144.65 points (-0.82%). 

The FIIs were net sellers to the tune of Rs.3128.39 crore, while DIIs were net buyers of Rs.870.01 crore. But FII selling only on the peg of expected US interest rate hike is too childish.

The broader market declined sharply. The BSE Mid-Cap index slipped 1.45% and BSE Small-Cap index lost 1.47%.

On the BSE, 1,110 shares rose and 2,316 shares fell. A total of 90 shares remained unchanged.

Last week, the RBI kept repo rate unchanged at 4%, while maintaining its accommodative stance after the conclusion of the MPC meeting on 8 April 2022.  Reverse repo rate stands at 3.35%.

The MPC voted unanimously to maintain an accommodative stance. For FY23, real GDP growth is projected to be 7.2% (down from 7.8% estimated in the previous policies). The CPI inflation is seen averaging at 5.7% (up from 4.5% estimated earlier).

#The shares of Global Vectra Helicorp Ltd (Rs.56.20) moved to Rs.59, intraday. I've been asking all to accumulate when the share recently fell to around Rs.46/47 ranges. The problem is that most investors, don't buy a scrip when it falls to lower levels inspite of my repeated reminders.  I'm looking for a target of Rs.120/180 in the coming days, as the crude oil prices has started to slip below $100 per barrel. However, the welness of the Crude Oil Exploration sector is directly proportional to the fundamentals of the company, though too high price of Crude Oil will dent its fundamentals.

Oil prices dropped on Monday amid fears that COVID - 19 lockdowns in China would depress global demand. International benchmark Brent crude declined 4.18% to settle at $98.48 per barrel.

#The shares of shipbuilders were in demand yesterday. Garden Reach Shipbuilders & Engineers (up 15.42%), Mazagon Dock Shipbuilders (up 8.97%) and Cochin Shipyard (up 5.33%) soared.

I had already mentioned that the fortunes of the Shipping sector is directly proportional to the buoyancy in the Crude Oil space. I had already recommended Reliance Naval and Engineering Ltd (Rs.3.50) for short to medium term gains. This is a sophisticated ship building yard. Due to the downturn in the sector and also due to unfavorable government of India's policies, the company suffered. Now, the new management is likely to put fresh blood in the company. I'm looking at a price of Rs.10/12 by this Deepawali. Accumulate on declines.

#In another major development, Adani Green came out with wonderful Q4FY22 numbers backed by robust performance in both solar and wind portfolios. 

I've telling since sometime that the rise in crude oil and coal prices is likely to spike up the tariffs of wind generation or to specify broadly, Renewable Energy companies.

Taking this perspective in mind, I've already recommended the shares of Indowind Energy Ltd (Rs.17.70). The company has started to perform excellently well in the fundamental front. 

Meanwhile, the Board of directors of Indowind Energy Limited at its meeting held on 7th January 2022, had decided to issue shares on the rights basis to existing shareholders for an amount not exceeding Rs.50 crores only. On that day the shares touched Rs.41.40, intraday.

Accumulate for a target 🎯 of Rs.71/72 in the short to medium term. Stay invested in Suzlon Energy Ltd (Rs.11.20), too.

#The scrip of A2Z Infra Engineering Ltd (Rs.11.50) is consolidating around the CMP. I'm expecting a turnaround in Q1FY23. The share is liked to cross Rs.15 by this Deepawali. Stay invested.