Market Mantra: Bulls Set To Come Back To The Ring, Again

Photo: Sapient Wealth Advisers & Brokers

Indian equity benchmarks crashed as blue chip stocks came under heavy selling pressure, yesterday. The barometer index, the S&P BSE Sensex, fell 806.47 points or 2.24% to 35,169.16, as per the provisional closing data. The Nifty 50 index fell 309.85 points or 2.85% to 10,548.40, as per the provisional closing data. Gains in ICICI Bank and Larsen & Toubro supported bourses at lower levels.

Falling rupee and surging crude prices put pressure on shares. India imports majority of its crude requirements and a surge in crude raises concerns on fiscal deficit, inflation and gives lesser room for the government to boost growth through spending on infrastructure. A weak rupee raises the cost of importing crude oil.

Negative global cues also spoiled sentiment. Investors were cautious ahead of the outcome of Reserve Bank of India (RBI)'s three-day Monetary Policy Committee (MPC) meeting tomorrow, 5 October 2018. The resolution of the MPC will be unveiled at 14:30 IST on 5 October 2018.

Among secondary equity barometers, the BSE Mid-Cap index fell 1.93%. The BSE Small-Cap index fell 2.07%.

The market breadth, indicating the overall health of the market, was weak. On BSE, 779 shares rose and 1885 shares fell. A total of 138 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Capital Goods index (down 0.07%), the S&P BSE Bankex (down 0.26%), the S&P BSE Metal index (down 0.56%), the S&P BSE Power index (down 0.67%), the S&P BSE Basic Materials index (down 0.85%), the S&P BSE Industrials index (down 0.99%), the S&P BSE Utilities index (down 1.08%), the S&P BSE Finance index (down 1.11%), the S&P BSE Realty index (down 1.11%), the S&P BSE Consumer Durables index (down 1.51%), the S&P BSE Consumer Discretionary Goods & Services index (down 1.79%), the S&P BSE Auto index (down 1.84%) and the S&P BSE Telecom index (down 1.86%), outperformed the Sensex. The S&P BSE FMCG index (down 2.56%), the S&P BSE Teck index (down 2.97%), the S&P BSE Healthcare index (down 3.02%), the S&P BSE IT index (down 3.28%), the S&P BSE Oil & Gas index (down 6.58%) and the S&P BSE Energy index (down 6.66%), underperformed the Sensex.

Shares of oil marketing companies slumped after Finance Minister Arun Jaitley announced to cut fuel price by Rs 2.5 per litre. Government has cut excise on petrol and diesel by Rs 1.5 per litre. Oil marketing companies have been asked to bear remaining burden of Re 1 per litre.

Indian Oil Corporation (down 10.57%), BPCL (down 10.89%) and HPCL (down 12.23%), crashed. Reliance Industries (down 7.03%), Hero MotoCorp (down 5.45%), Adani Ports & Special Economic Zone (down 4.17%), ONGC (down 3.74%) and Sun Pharmaceutical Industries (down 3.7%), were the major Sensex losers.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 73.70, compared with its close of 73.34 during the previous trading session. Rupee hit a record low of 73.815 yesterday.

In the global commodities markets, Brent for December 2018 settlement was down 25 cents at $86.04 a barrel. The contract had risen $1.49 a barrel or 1.76% to settle at $86.29 a barrel during the previous trading session.

Meanwhile, India's service sector continued to expand during September, but at a marginal rate amid reports of underwhelming market demand. The seasonally adjusted Nikkei India Services Business Activity Index recorded 50.9 during September. That was down from 51.5 in August and the lowest reading in the current four-month sequence of rising activity.

The seasonally adjusted Nikkei India Composite PMI Output Index also recorded a fall during September. Posting a level of 51.6, the index was down from 51.9 in August and at its lowest level in four months. That was despite a slight improvement in the manufacturing sector, where output growth strengthened to a solid pace.

Investors will be closely watching the outcome of Reserve Bank of India (RBI)'s three-day Monetary Policy Committee (MPC) meeting today, 5 October 2018. The resolution of the MPC will be unveiled at 14:30 IST today, 5 October 2018.

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 53 points at the opening bell.

Overseas, Asian stocks were trading lower after US equities fell to a three-week low amid the surge in bond yields. US stocks dropped yesterday, 4 October 2018 as the rout in Treasuries that took yields to multiyear highs fueled a repricing of risk assets.

The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 2760.63 crore yesterday, 4 October 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs.1823.59 crore yesterday, 4 October 2018, as per provisional data.

On the macro front, giving a boost to farmers' income, the Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has approved the increase in the Minimum Support Prices (MSPs) for all Rabi crops for 2018-19 to be marketed in 2019-20 season. The farmer friendly initiative will give additional return to the farmers of Rs 62,635 crore by way of increasing MSP of notified crops to at least 50% return over cost of production and will aid in doubling farmers' income. The increase in the MSPs of wheat has been raised by Rs105 per quintal, safflower by Rs 845 per quintal, barley by Rs 30 per quintal, masur (lentil) by Rs 225 per quintal, gram by Rs 220 per quintal and rapeseed & mustard by Rs 200 per quintal is another major step in this regard, the Ministry of Agriculture & Farmers Welfare said in a statement yesterday, 3 October 2018.

On the economic front, the provisional figures of Direct Tax collections up to September, 2018 (Half-yearly figures) show that gross collections are at Rs.5.47 lakh crore which is 16.7% higher than the gross collections for the corresponding period of last year. It is pertinent to mention that gross collections of the corresponding period of F.Y. 2017-18 also included extraordinary collections under the Income Declaration Scheme(IDS), 2016 amounting to Rs. 10,254 crore (Third and last installment of IDS), which does not form part of the current year's collection.

Refunds amounting to Rs 1.03 lakh crore have been issued during April, 2018 to September, 2018, which is 30.4% higher than refunds issued during the same period in the preceding year. Net collections (after adjusting for refunds) have increased by 14% to Rs. 4.44 lakh crore during April, 2018 to September, 2018. The net Direct Tax collections represent 38.6% of the total Budget Estimates of Direct Taxes for F.Y. 2018-19 (Rs 11.50 lakh crore).

So far as the growth rate for Corporate Income Tax (CIT) and Personal Income Tax (PIT) is concerned, the growth rate of gross collections for CIT is 19.5% while that for PIT (including STT) is 19.1%. After adjustment of refunds, the net growth in CIT collections is 18.7% and that in PIT collections is 14.9%.

An amount of Rs 2.10 lakh crore has been collected as Advance Tax, which is 18.7% higher than the Advance Tax collections during the corresponding period of last year. The growth rate of Corporate Advance Tax is 16.4% and that of PIT Advance Tax is 30.3%.

Jerome Powell, the US Fed chairman, said that the bank was a "long way" from neutral on interest rates. The comments pushed the dollar to an 11-month high against the Japanese yen.

In Europe, the focus is on Italian politics. Prime Minister Giuseppe Conte said on Wednesday that the government deficit will be decreased in the next three years, despite the surge planned for 2019.

In US, Private-sector employment soared in September, as employers added 230,000 jobs, according to Automatic Data Processing Inc. Separately, the final reading on the services sector from IHS Markit fell to 53.5 in September from 54.8, while the Institute for Supply Management's reading on the non-manufacturing sector came in at 61.6.

Wall Street got an early lift after a report in Italian daily newspaper Corriere della Sera that the government may yield ground in a budget standoff with the EU, which could lessen the odds of a clash between the country and the bloc.

According to the report, Italy's budget deficit target will be set at 2.4% of GDP in 2019, but decline to 2.2% in 2020 and 2.0% in 2021. Italian officials had previously clashed with Brussels over the budget deficit target, which exceeded EU rules and stoked fears of another crisis in the region. A resolution in Italy would mean one less potential risk to watch out for.

Now there are at least 4- points are worth considering, today:

• A surge in USB Treasury yields has prompted a rise in government bond yields across the globe. Euro zone bond yields rose sharply, tracking their U.S. counterparts, while the "trans-Atlantic spread" between US & German 10-year bond yields hit a 3-decade high of around 275 bps. Theoretically, the higher the current rate of inflation and the higher the (expected) future rates of inflation, the higher the yields will rise across the yield curve, as investors will demand this higher yield to compensate for inflation risk. Thus this brings before the US inflation fears and probably a continuation of the current US interest rate graph.
• Oil prices fell as the prospect of increased crude production from Saudi Arabia and Russia prompted profit-taking the day after futures hit four-year highs on a boost from imminent U.S. sanctions on OPEC's No. 3 producer Iran.
• There are also worries about non-banking financial companies even though the country's largest lender SBI had assured lending support to the NBFC sector.
• The Reserve Bank of India has given upfront guidance of its planned bond purchases under the open market operation in the month of October. In a statement before debt markets opened for trade, the central bank said it would infuse Rs.36,000 crore via bond purchases this month. This would be done via three auctions in the second, third and fourth weeks of October. The specific securities for buybacks will be notified later, the RBI said. The announcement is based on an “assessment of the durable liquidity needs going forward and the seasonal growth in currency in circulation observed in build-up to the festive season...” said the RBI.

This gives conclusion at the end, that though the Indian markets are likely to fall initially, it is likely to stabilize at the end of the trading day. I am expecting the Nifty and Sensex to close either flat or in Green at the end of the day. The traders are suggested to come out of their overnight Short Positions slowly and can take intraday longs. The Nifty levels and other stock related details will ONLY be sent to the Premium Members. You can join me in Twitter: suman2009s

Winning Strokes: Think Different

Key benchmark indices suffered severe losses amid a broad-based sell-off in index pivotals. The barometer index, the S&P BSE Sensex, lost 550.51 points or 1.51% to settle at 35,975.63. The Nifty 50 index lost 150.05 points or 1.36% to settle at 10,858.25. The Nifty settled below the psychological 11,000 mark.

Photo: Samachar Plus

Sentiment was weak after the rupee dropped to a new low amid sustained foreign fund outflows and surging crude oil prices. Investors were also cautious ahead of the three-day Reserve Bank of India (RBI) policy review scheduled to begin Wednesday. The RBI's Monetary Policy Committee (MPC) will meet between 3 to 5 October 2018 for the fourth bi-monthly monetary policy for 2018-2019. The resolution of the MPC will be unveiled at 14:30 IST on 5 October 2018.

In the global commodities markets, Brent for December 2018 settlement was up 17 cents at $84.97 a barrel. The contract had fallen 18 cents, or 0.21% to settle at $84.80 a barrel during the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 73.24, compared with its close of 72.91 during the previous trading session. Rupee hit a record low of 73.4175 against the dollar in early deals amid worries that surging oil prices will stoke inflationary pressures and widen India's current and trade deficits.

Among secondary equity barometers, the BSE Mid-Cap index lost 1.11%. The BSE Small-Cap index rose 0.20%.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1453 shares rose and 1212 shares fell. A total of 153 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Auto index (down 2.9%), the S&P BSE Teck index (down 2.38%), the S&P BSE IT index (down 2.23%) underperformed the Sensex. The S&P BSE Metal index (up 1.74%), the S&P BSE Oil & Gas index (up 0.63%), the S&P BSE Capital Goods index (up 0.23%) outperformed the Sensex.

Yes Bank gained 5.79% on bargain after the steep declines in recent weeks. In a recent press update, the bank noted that it is fully geared for the MD & CEO's succession and pursuant to the board of directors meeting dated 25 September 2018, the two external experts of the search & selection committee will be finalized by 7 October 2018. The committee, assisted by a global leadership advisory firm, will evaluate both internal and external candidates and make suitable recommendations to the board of directors for onward submission to RBI.

Over the past few days, some unfounded speculations regarding the bank's asset quality have been brought to its notice, according to the bank. In this context, the management clarifies that the asset quality continues to be stable and reiterated its credit cost guidance at 50-70 bps for FY19 (76 bps for 

FY18).

The bank has a liquidity coverage ratio of ~101% as on September 30, 2018, which is 11% points in excess of the minimum regulatory requirement of 90%. The Bank's average daily LCR for Q2 FY19 was ~100%. The bank's liquidity position will further benefit from the recent RBI measures (announced on September 27, 2018) to ease systemic liquidity which will take effect on October 01, 2018, noted the bank further.

Hathway Cable & Datacom jumped 9.09% after media reports suggested that Reliance Industries has initiated talks to acquire Hathway Cable. The acquisition talks are underway in a bid to speed up the commercial launch of Reliance's GigaFiber high-speed home broadband services, reports added.

Reliance Industries lost 2.13%. With reference to media reports titled, "RIL in talks to buy Hathway, bring broadband home to you", the company clarified to bourses today that it is unable to comment on media speculation and rumors and it would be inappropriate on its part to do so. The company evaluates various opportunities on an ongoing basis. There is no information which has not been announced to the stock exchanges and which should have been announced by the company.

MOIL gained 6.39% after the company said that it has fixed/revised prices of different grades of manganese ore and other products, effective from 1 October 2018. The announcement was made after market hours on Monday, 1 October 2018. Stock markets were closed yesterday, 2 October 2018 for local holiday.

MOIL said that in line with the business practice of fixing/revising prices Manganese Ore, the company has fixed/revised prices of different grades of Manganese Ore, effective from 1 October 2018. The prices of Ferro Grade, SMGR (Mn 30% & Mn 25%), Chemical Grade and Fines have been increased by about 10% on the existing prices prevailing since 1 September 2018. A discount of 10% will be offered on the prices effective from 1 October 2018 on specific grades of materials i.e. BGF534, DBL456 & BGL523 for dispatches during October 2018.

The basic price of Electrolytic Manganese Dioxide (EMD), has been increased by Rs 9000 PMT on the existing price prevailing since 1 July 2018. Ferro Manganese/ Ferro Manganese Slag and some identified grades of Manganese Ore will continue to be sold on e-auction basis as well as through Metal Mandi (M3) of MSTC.

Overseas, most European stocks rose on Wednesday as investors kept an eye on Italian politics and spending plans. Most Asian stocks declined. Markets in China and South Korea were closed for a public holiday.

Italy last week unveiled a 2019 budget deficit target that has met stiff opposition from European Union officials, who say it will violate the bloc's fiscal rules. Italy's coalition government proposed a budget that would increase the deficit to 2.4% of gross domestic output in 2019, well above the initial target of 0.8% proposed by the country's previous centre-left government. The current target range for this year is 1.6%. The deficit blowout revived fears of the eurozone debt crisis and put pressure on the euro.

Meanwhile in the UK, the Conservatives' annual party conference was under way with Prime Minister Theresa May facing pressure over her proposal for future UK-EU relations, known as the Chequers plan, which has already been rejected by EU leaders. Any additional signs of political instability in Europe could weigh on the US, where multinational firms have a large amount of revenue exposure to the region.

In US, the Dow Jones Industrial Average hit a record high on Tuesday as it rallied for a second day, boosted by gains in Intel and optimism around global trade. Stocks were coming off strong gains from the previous session after Canada joined the US and Mexico in a new trade deal. The United States-Mexico-Canada Agreement, or "USMCA" for short, will see all three countries compromise on certain trade aspects. More market access will be granted to US dairy farmers, while Canada has agreed to effectively cap automobile exports to the States.

Trade war remains in focus for the markets. Following the new USMCA deal to replace the current North American Free Trade Agreement, eyes are now on Washington's ongoing trade fight with China. Investors will be looking to China, to see if Beijing and Washington can compromise on certain trade elements.

#Yesterday's call Yes Bank Ltd at around Rs.185 and Rs.200 call at Rs.15 gave good returns to the investors. The stock rose to Rs.222.95 in the NSE before closing at Rs.212.75 in the NSE up 5.92%. The Premium Members were asked to book profits around Rs.220 after the 1st target was achieved. You can hold the scrip with a SL at Rs.202.
I have started to give calls on Twitter during the market hours, because this seems to be a better one than Facebook for micro-blogging. My Twitter handle is suman2009s

#Today a buy call was initiated in the shares of Global Offshore Services Ltd at around Rs.12.80 for medium to long term basis. It is in the business of transport of personnel to rigs or  platforms from onshore bases and vice-versa; delivery of cargo or  material to rigs or platforms; anchor handling operations;towing of rigs, etc. The fact that crude oil prices are moving up in the international market is positive for the sector.
However, since this is a high-risk-high-gain stock, kindly don't enter the counter without placing a SL at Rs.9.60. If the things work as expected then this stock can make you millionaire. 

#Today a buy call given to the Premium Members on Premier Explosives Ltd at around Rs.180. If you could remember, that I used to give regular buy call on this company during 2003-2007 period, when it used to hover around Rs.18-35. Now I am recommending the same stock almost 6  times that price. This is how the stock market rewards long term investors. The stock  rose to Rs.214 intraday giving good returns to the Premium Members. The scrip closed at Rs.189.65 in the NSE, up 7.88%.
Join the Premium Services and get such calls on your Whatsapp, during the market hours. One or two Right Trade/s will give you back what you Paid as subscription charges. You can send me mails at: suman2005s@rediffmail.com.

Premier Explosives is a manufacturer of high-energy materials for the defence and mining sectors. It is the first private entity to develop and manufacture solid propellants for missiles. Bharat Dynamics has been procuring booster grains from Premier Explosives for use in the manufacture of Akash missiles. Amar Nath Gupta (promoter) bought 25,38,599 shares through market purchase from August 23 to August 27, 2018.

#The stock of Bharat Electronics Ltd (BEL) was given a buy to the Premium Members on 2nd October, '18 to be bought on the next day, i.e. 3rd October, '18 at Rs.82.70. The scrip made a high of Rs.84.75 today, before closing at Rs.83.40 on the NSE. You can still buy the scrip for targets of Rs.102/119. SL: Rs.75.
Public sector major Bharat Electronics Ltd (BEL) is planning to grab its pie on the Rs 90 billion-worth opportunity Indian Space Research Organisation (Isro) is opening up for the industries in the next few years. BEL is working in strategic areas like homeland security solutions, smart cities, cyber security, unmanned systems, satellite integration and composites in line with the emerging needs of the customers, said M V Gowtama, Chairman & Managing Director of BEL in a communication to the shareholders.

#In the Forex market the Indian Rupee dropped to a new low amid sustained foreign fund outflows and surging crude oil prices. This gives a general indication that the RBI is likely to increase the repo rate in the next meet. Hence, as a precautionary measure, I would suggest you to stay away from the rate sensitive sectors, like Real Estate, Construction, Auto, etc for the time being. 

#The Nifty Spot today closed at 10858.25 down 150.05 points. I feel the negative trend is likely to continue with occasional bouts of spikes, which should be used either to come out long positions or to initiate fresh shorts. According to my estimation, with a rate hike fear looming on the horizon, the Nifty Spot is likely to test 10586 in the Extreme Case, on the downside. However, the individual shares are likely to shine. Hence, stock picking is very important in this kind of market. Tomorrow we could witness a bounce of 10 - 15 points bounce on Nifty during the opening hours. 

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

Winning Strokes: Think Different

Trading for the month of October started on a positive note, with benchmark indices snapping their three-day losing streak led by gains in HDFC, TCS, Infosys and HDFC Bank. The Nifty managed to close above 11,000-mark.

The Sensex rose 299 points or 0.83% to settle at 36,526.14. The index rose 389.50 points, or 1.08% at the day's high of 36,616.64. The index fell 266.49 points, or 0.74% at the day's low of 35,960.65.

The Nifty 50 index rose 77.85 points or 0.71% to settle at 11,008.30. The index rose 105.20 points, or 0.96% at the day's high of 11,035.65. The index fell 108.90 points, or 1% at the day's low of 10,821.55.

Among secondary barometers, the BSE Mid-Cap index rose 0.53%. The BSE Small-Cap index fell 0.25%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1046 shares rose and 1620 shares fell. A total of 189 shares were unchanged.

India's manufacturing economy recorded an improvement in growth during September amid firmer gains in new orders, output and employment. Sales rose from both domestic and foreign clients, whilst manufacturers raised their buying activity and bolstered stocks of purchases in anticipation of further growth. On the price front, input costs rose at a stronger rate amid reports of higher prices for fuel and steel. Charges were subsequently increased at a slightly firmer pace. Manufacturers remain confident that output will increase over the coming year.

The Nikkei India Manufacturing Purchasing Managers Index (PMI) strengthened slightly in September to reach a level of 52.2 (up from 51.7 in August). Solid growth of the manufacturing sector during the latest survey period extended the current run of expansion to 14 months.

Underpinning the overall expansion was a firmer increase in levels of new work. Solid growth was linked to gains in both domestic and foreign demand. Indeed, export sales strengthened, with the net gain the best recorded since the start of the year. High product quality was noted as a factor supporting total new order book growth.

With new work increasing, manufacturing production was subsequently raised for a fourteenth successive month. Intermediate goods producers signalled a particularly strong increase in production, although growth was registered across all market groups.

Rising new work and increased production helped to drive growth of buying activity during September. In turn, this helped manufacturers to build inventories of purchases. Although modest, growth in pre-production goods was the sharpest recorded by the survey since May 2017.

Despite higher levels of new business, manufacturers were just about able to keep on top of their workloads in September. Backlogs of work were down slightly, the first such decline since March, whilst there was a further increase in manpower: staffing levels rose for a sixth successive month and at the fastest rate since June.

Meanwhile, price pressures intensified, with latest data showing that input costs rose to the greatest degree since June. There were reports that a strong US dollar and supply shortages had exacerbated high global prices for steel and fuel. Manufacturers passed on higher costs wherever possible via an increase in their own charges. Latest data indicated a modest, but nonetheless stronger, rise in output prices compared to August.

Finally, manufacturers are confident that output will be higher in 12 months time. Planned new product launches and developments, plus firmer market demand, all contributed to positive sentiment. That said, confidence softened slightly in September and was at a three-month low.

Commenting on the Indian Manufacturing PMI survey data, Paul Smith, Economics Director at IHS Markit and author of the report said, Growth of India's manufacturing sector picked up during the latest survey period, reflective of strengthening demand especially from foreign clients, which helped to drive export growth up to its highest level since the turn of the year.

However, cost pressures reignited in September, exacerbated by a stronger US dollar which continues to raise the relative price faced by Indian manufacturers for goods such as steel and fuel. Output charges increased subsequently, albeit at a rate that remains well below the equivalent measure for input prices.

Rising prices continued to weigh on sentiment, with confidence dropping a little to reach a three-month low. Nonetheless, on balance, firms remain confident that output will continue to rise, buoyed by recent new business wins and expectations this will continue over the next 12 months.

#Today's BUY call on Yes Bank Ltd at around Rs.185, saw it touch Rs.203.80 intraday in the NSE. A Buy call on Rs.200 call at Rs.15, saw it close at Rs.20. The scrip closed at Rs.200.80 up 9.37%. We can look for targets of Rs.220-241 in the coming days, with the corresponding price on Rs.200 call. 

#Free call on Punjab National Bank in Facebook at around Rs.59.70 saw it touch Rs.63.55 in the NSE. The scrip closed at Rs.63.20. We can look for targets of Rs.71-72 in the coming days. 

#The scrip of J P Associates Ltd today closed at Rs.7, up 6.06%, after it made an 8-year low in the exchanges. It may rise to Rs.9-11 over a period, but I no longer find the stock interesting because of too many conflicting data points. When there are so many stocks to invest for the long term, why stick my neck to a company which has an uncertain future. 

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

Winning Strokes: Think Different

The dark clouds have been hovering over the markets since the last few days, due to the reasons mentioned in my last post. Today the BSE closed at 36,227.14 down 97.03 or 0.27% while the NSE ended the day at 10,930.45 down 47.10 points or 0.43%. 

Metal, Small cap, Auto and Realty stocks were biggest draggers today (Index declined 5% each). Nifty has been treading a southward path since the last few week and this month the decline was a whooping 7% decline, worst since the Lehman Brothers' crash in 2008. IL&FS's debt payment  crisis, and Brent crude's price hike are some of the major reasons for markets to go in for such sharp cuts. 

For Nifty 500 stocks, the advance to decline ratio was at 1:4. As expected Mid-caps and select NBFC stocks were hammered today. Infibeam Avenues nosedived by ~70%, though the company clarified that it has given interest free unsecured loan to its subsidiary NSI lnfinium Global Pvt Ltd. It closed to a 2-year low of Rs.58 ahead of AGM (tomorrow) . Yes Bank shed 10% to close 2-year low of Rs.184. Media reports suggest that Madhu Kapoor, a prominent share holder of YES Bank sold 0.04% of the stake, in the open market on September 21. 

Nifty Futures: Brokerage Outlook: Nifty future closed negative with the losses of 0.59% at 10964. Option data is scattered at all the strikes as it's the beginning of the October Series. On option front, maximum Put OI is at 11000 followed by 10800 strike while maximum Call OI is at 11500 followed by 11200 strikes. We have seen Put writing at 11000 followed by 10800 strikes while Call writing is seen at 11300 then 11200 strike. Option band signifies a wider trading range in between 10800 to 11171 zones. India VIX moved up by 0.44% at 17 levels. It has spiked by 9.36% in this week while up by 35% in this month. Rising volatility suggests that bears are holding the tight grip on the market. Built up Long positions were seen in Axis Bank, Britannia, HDFC Bank and Wipro while Shorts were seen in Just Dial, IGL, Jubilant Food, Hero Moto, KPIT, IbullhsgFin and SAIL

#A Sell call was given on Jindal Steel and Power Ltd to the Premium Members on their Whatsapps, at around Rs.223.6 for short term targets of Rs.199/171. The scrip made an intrday low of Rs.186, before closing at Rs.196.15. The 1st target has already been achieved on today. 

#A sell call was given on the stock of Max Financial Services Ltd to the Premium Members on their Whatsapps, at around Rs.419.05 with a SL at Rs.444. The scrip made an intrday low of Rs.401.55 before closing at Rs.409.45.

#Nifty was given a sell yesterday on this blog. Today it made further low of 10930.45. Till it remains below 11050-11080 zones, overall weakness could continue towards 10850 then 10750-10700 levels. The Nifty could even drift to 9916, before Durga Pooja. Hence, you can build up short positions. I have already suggested all to hold on to your buy decisions till more clarity arrives on the NBFC issue. Or forget delivery based cash market for the time being, play only in the F&O segment. I hope those who regularly follow this blog, must have made money through shorting of Nifty Futures. 

#The stocks of Bombay based real estate companies like HDIL tanked further to Rs.20.80 in the BSE, after a report showed Greater Mumbai to be slipping to the 4th Position behind Surat of Gujarat. I had already suggested an exit from the scrip, in the my last post. Stay away from all the real estate counters, especially the Mumbai based ones as I am expecting a crash in the Real Estate market in Metropolis.

#The scrip of J P Associates Ltd (Rs.6.60) today perhaps made an all time low of Rs.6.45 in both the BSE and the NSE. This is a FREE FALL from Rakhesh Jhunjhunwala's buy price of around Rs.14. This is the 2nd time RJ entered the counter. His earlier buy price should be a bit higher, when he first entered the stock. Now, those who talked of his "Clarity of Thought" in terms of stock picking stocks, are now silent. The electronic media tends to go mum when such events occur. They normally try to bring him in front of camera, when his scrip performs and earn TRP. Otherwise, the work of these business channels are to SHIELD him and hide his grave mistakes. This clandestine nexus between the Business Channels and their PET marketmen/traders is not restricted to RJ alone, but many of his contemporaries including S P Tulsian, Ashwani Gujral, and so on.....
If you remember, I had suggested an exit from the stock when it broke Rs.12-14 zone on the downside. When RJ increased his stake, I was surprised because, it was I who brought the stock to limelight at around Rs.7, when everywhere, I was hearing a sell call. The stock went on to cross Rs.27 making a new 52-week high.  I thought RJ must be having some information which I do not have, but at the end he turned out to be........

#The stock of Monnet Ispat & Energy Ltd which was recommended to the Premium Members at around Rs.11-12 today hit the upper circuit at Rs.34.35 in the BSE. The stock almost TRIPLED in the last few months. Congratulations to those who are still holding the stock. 

#I will be recommending two Buy/Sell calls on Monday in the F&O Segment. If anyone wants to know their names, they should join the Premium Services by Sunday. 

Winning Strokes: Think Different

Photo: Ro.Aliment

The Nifty declined over half a percent to close below 11000 at 10977.55. Nifty fell by around 6% in September F&O series expiry --  one of the worst F&O expiry in seven months. All the major indices recorded a sharp decline yesterday except the Tech stocks. Some of the Negatives affecting the Indian bourses are:

• IL&FS default on debt repayment, 
• Brent Crude spiked to 4-year high,
• Increased USD-INR ratio,
• Concern of a trade war between China and US,
• US Fed hiking interest rate by 25 bps on Wednesday and more importantly
• Deepening of the NBFC crisis with SEBI now seeking the details from mutual funds about their exposure to all NBFCs and housing finance companies; amid concerns over liquidity in the system.

In such a scenario, I can only foresee further sliding of the Indian markets (Nifty Spot) to levels 10930/10870. The traders are suggested to keep in abeyance all their buy calls, as was mentioned to the Premium Members earlier.

Brokerage View on Nifty Futures: Nifty future closed negative with the losses of 0.76% at 10978. Option data is scattered at all the strike prices on account of beginning of new October Series. On option front, maximum Put OI is at 11000 followed by 10800 strike while maximum Call OI is at 11500 followed by 11200 strikes. We have seen Put writing at 11000 followed by 10800 strikes while Call writing is seen at 11200 then 11100 strike. Option band signifies a wider trading range in between 10850 to 11171 zones. India VIX fell down by 0.98% at 16.92 levels. Sector wise selling pressure was seen in Banking, NBFC,FMCG and Auto sector while buying interest was seen in IT Space.

#I have given two F&O Sell Calls to the Premium Members considering the current negative scenario. I will publish the name of the stocks during the market hours today. In fact I would suggest you to exit from all your long positions (if any) as I am expecting panic selling in the coming days.

#Stay away from the Mumbai based Real Estate stocks, as they are likely to go down further following a report which speaks of grim economic scenario prevalent in the city. Mumbai came at poor 4th after Surat and miles behind Delhi and Hyderabad. 

~~with inputs from the Internet....

Winning Strokes: Think Different

Photo: Zricks.com

In a highly volatile session, the Indian equity markets ended in red ahead of September series F&O expiry and caution ahead of US Federal Reserve decision on interest rate. 

The BSE  Sensex closed at 36,542.27 down 109.79  points or 0.30%, while the Nifty spot ended the day at 11,053.80 down 13.65 or 0.12%. Nifty touched a day's high 11146 and low of 10993 but failed to break 111500-11175 resistance zone. 

FMCG and Tech stocks witnessed biggest losers today while Metal stocks were in limelight. Mid-cap and small cap stocks gained marginally.

IL&FS Ltd's default on debt repayment, rising USD-INR ratio and spike in crude oil price in the international markets, had a negative sentiment in the Indian bourses. US Fed will announce its interest rate decision, tonight. 

Nifty future closed in the negative with the losses of 0.33% at 11050. On option front, maximum Put OI is seen at 11000 followed by 10800 strike while maximum Call OI is at 11200 followed by 11100 strikes. Put writing has been witnessed at 11000 followed by 10950 strikes while Call writing was seen at 11200 and 11100 strikes. 

Option band signifies a wider trading range in between 10850 to 11171 zones. India VIX moved up by 2.44% at 17.08 levels. Higher VIX suggests volatile swings are likely to continue in the market. Built up of Long positions were seen in M& M Finance, UBL, UPL and Hindalco while shorts were seen in Motherson Sumi, Tata Motor, Tata Elxsi and Godrej CP.

In another significant development, the government of India on Wednesday announced hike in customs duty on 19 items, with an aim to curb "non-essential imports" and narrow the current account deficit. This could give legs to the consumer good sector in the coming days.

Nifty spot now has to hold above 11000 zones to witness a bounce back move towards to close above 11080. The Nifty support stands at  10980/10930 levels. 

#The stock of Housing Development & Infrastructure Ltd was recommended to the Premium Members today around Rs.21-22 based on the report that the company had reached a settlement with Bank of India over dues worth Rs.5.11 bn. Its DEBT-EQUITY RATIO(HY) is Lowest at 0.20 times. We can look for short term targets of Rs.26-27 in the coming days. Join the Premium Information Services to stay ahead of others. Also, avail of the ongoing discount scheme available for the Yearly and Life-time subscriptions. 

#The stock of MOIL Ltd was given a buy yesterday in this blog at around Rs.175.95.  The scrip today made an intrday high of Rs.17.50, before closing flat at Rs.173.75. The medium to long term investors are suggested to accumulate the scrip on every decline keeping a SL at Rs.166, for the positive factors mentioned earlier.

#The scrip of Mandhana Industries Ltd today hit the  upper circuit in the BSE at Rs.5.57. The next targets are Rs.7.5-8. Its ROCE(HY) is Highest at 3,983.72%.  If it is able to cross Rs.9.7-10 ranges, we could look for higher targets in the coming days. Accumulate!! 

#In India annually 65 lakh farmers cultivate more than one crore hectares of cotton, the largest in the world in about 10 States mostly under rainfed conditions. An estimated 6 crore people depend on cotton for their living. India’s share in global cotton production is a whopping 25 per cent, a matter of pride for India and the Indian farmer. Indian cotton production received a big boost from 130 lakh bales in 2002 to 370 lakh bales in 2017 with the introduction of Bt cotton. Increased cotton availability helped Indian cotton exports to flourish and reach $8 billion last year.

Moreover, according to a report on Financial Express, 13 September, '18, The domestic demand for textiles is likely to remain robust from end-user segments, supported by a strong rise in private consumption expenditure during the rest of FY19.

#The stock of Reliance Naval and Engineering Ltd hit the Upper Circuits at Rs.12.90 after my POSITIVE write up on Facebook. The company has presented a new revival plan to the lenders and is expecting a positive outcome. 

~~With inputs from Internet....

Winning Strokes: Think Different

The market ended the volatile session with decent gains as bargain hunting emerged after steep losses in past few trading sessions. The barometer index, the S&P BSE Sensex, rose 347.04 points or 0.96% to 36,652.06, as per the provisional closing data. The Nifty 50 index rose 100.05 points or 0.91% to 11,067.45, as per the provisional closing data.

Among secondary barometers, the BSE Mid-Cap index rose 0.36%. The BSE Small-Cap index fell 0.74%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1081 shares rose and 1570 shares fell. A total of 174 shares were unchanged.

IT major Infosys rose 1.22%. Infosys announced that Infosys Public Services Inc. (IPS) received a CAD $80.3 million contract by Public Services and Procurement Canada (PSPC) to modernize and automate their procurement processes. IPS is working with Ernst & Young LLP (EY) and SAP Canada Inc. (SAP) to digitize PSPC procurement system through the implementation and management of a cloud-based electronic procurement solution. The announcement was made after market hours yesterday, 24 September 2018.

Asian stocks were mixed. Markets in Hong Kong and South Korea are closed for public holidays. Investors were cautious as the latest round of US-China tariffs revived fears the trade dispute would knock global growth, while crude oil was elevated near four-year highs after Saudi Arabia and Russia ruled out immediate production increases.

On the US economic data front, the Chicago Fed's national activity index came in at 0.18 in August, unchanged with the previous month.

#Profit Booking was suggested on Nifty Futures yesterday. The Premium Members were sent following messages on their Whatsapp on Sunday: "Nifty can slip to 11068 and 10863 on the downward spiral. Any dead cat bounce should be used to short. The Weekly RSI (of Nifty) stood at 53.8861 and has marked a fresh 14-period low, which is a bearish indication. The daily RSI is at 37.14, which is also does not favour the bulls. 

Bottomline: SELL."

I hope most of the members of my Premium Information  Service, who shorted the Nifty on Monday have made good profits on their trades. Today obviously the Nifty bounced back as expected and closed at 11,067.45 up 100.05 point or 0.91%. To get such calls, you need to Join my Premium Information Service. 

#However, compulsory Buyers were asked to accumulate the stock of Max India Ltd at around Rs.81 and at every market decline, yesterday for good medium to long term return. The stock closed at Rs.83 in the NSE today. We are looking for short term targets of Rs.91-92, in the coming weeks. Max India Limited, a multi-business corporate, is part of the US$ 3 billion Max Group and the holding company for Max Healthcare, Max Bupa Health Insurance, etc. Keep accumulating!! However, this is a NOT a momentum counter. 

#An exit was suggested from the scrip of HDIL at around Rs.28 to the Premium Members after it was finding hard to cross some key resistance levels. Most  of my Paid Members booked profits at around Rs.35-36 -- the scrip closed at Rs.21.95 today. Stay with me and make money. 

#Though Nifty Spot has given a close at 11067.45 with a gain of around 100.05 points, it is likely to face resistance at around 11075, from where the shorts could be initiated, with a SL at 11370,

#The scrip of MOIL Ltd can be accumulated at the CMP of Rs.173,95, with a SL at Rs,171. State-owned MOIL is looking to develop high-grade manganese  for batteries which could be used in electric vehicles (EVs). This stock could be the next big thing as the sale of electric vehicles picks up steam in the coming days. The government of India is aggressively pushing for electric vehicles to curb air pollution. Buy with a 2-3 years perspective, and hold it like your Fixed Deposits. 

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

Winning Strokes: Think Different

Equity benchmarks gave up early gains and ended lower, extending losses for third straight day. Selling in major sectors such as banks and FMCG weighed on the indices. The rupee hovering near its record low spooked investors.

The Sensex fell 169.45 points or 0.45% to settle at 37,121.22, its lowest closing level since 26 July 2018. The index rose 239.96 points, or 0.64% at the day's high of 37,530.63. The index fell 227.98 points, or 0.61% at the day's low of 37,062.69.

The Nifty 50 index fell 44.55 points or 0.39% to settle at 11,234.35, its lowest closing level since 26 July 2018. The index rose 53.15 points, or 0.47% at the day's high of 11,332.05. The index fell 68 points, or 0.60% at the day's low of 11,210.90.

Among secondary barometers, the BSE Mid-Cap index fell 0.72%. The BSE Small-Cap index fell 0.98%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On BSE, 968 shares rose and 1704 shares fell. A total of 173 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Metal index (up 1.25%), the S&P BSE Oil & Gas index (up 0.98%), the S&P BSE Basic Materials index (up 0.20%), the S&P BSE IT index (up 0.15%), the S&P BSE Energy index (up 0.14%), the S&P BSE Teck index (up 0.07%), the S&P BSE Capital Goods index (down 0.06%), the S&P BSE Industrials index (down 0.16%), the S&P BSE Utilities index (down 0.32%) and the S&P BSE Auto index (down 0.42%), outperformed the Sensex. The S&P BSE Telecom index fell 0.45%, matching the Sensex fall in percentage terms. The S&P BSE Bankex (down 0.51%), the S&P BSE Power index (down 0.52%), the S&P BSE Healthcare index (down 0.59%), the S&P BSE Consumer Durables index (down 0.8%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.82%), the S&P BSE Realty index (down 0.96%), the S&P BSE Finance index (down 1.01%) and the S&P BSE FMCG index (down 1.09%), underperformed the Sensex.

Shares of asset management companies slumped on fears of the impact on their revenue and profitability after the Securities and Exchange Board of India (Sebi) reduced the total expense ratio.

HDFC Asset Management Company declined 8.55% to Rs 1,408.55. Reliance Nippon Life Asset Management slumped 11.28% to Rs 190.

Sebi on Tuesday capped the total expense ratio (TER) for fund houses with equity assets up to Rs 50000 crore at 1.05%, down from as much as 1.75% charged earlier. AMCs with lower assets under management (AUM) will be allowed to charge a higher TER, based on slabs. Sebi also said the industry would have to move to a full “trail model” for commissions. It also capped fees for exchange-traded funds (ETFs) at a maximum of 1%.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 72.575, compared with its close of 72.9775 during the previous trading session.

Asian stocks rose across the board on Wednesday as expectations that Beijing would implement stimulus to soften the economic blow from the Sino-US trade war helped Chinese shares rally.

China announced tariffs targeting more than 5,000 US products, worth about $60 billion, will go into effect on 24 September 2018. However, China will put a 10% tariff on some goods it had previously earmarked for a 20% levy. At the same time, China's commerce ministry said that it filed a complaint to the World Trade Organization (WTO) against the US.

Beijing's announcement came after the Trump administration said the US will impose 10% tariffs on $200 billion worth of Chinese imports, and those duties will rise to 25% at the end of the year.

US stocks came off earlier highs but still closed higher on Tuesday as investors shrugged off escalating trade tensions to instead focus on the robust economy.

In the global commodities markets, Brent for November 2018 settlement was down 14 cents at $78.89 a barrel. The contract had fallen 98 cents, or 1.24% to settle at $78.05 a barrel during the previous trading session.

#ARSS Infrastructure Projects Ltd touched Rs.29.15, in the BSE before closing at Rs.28.85. The company has a good order book and is constantly getting new ones from various agencies. Its Q1FY19 loss came at Rs.10.70 crore versus a loss at Rs.15.12 crore in Q1FY18. Its revenue however fell to Rs.135.40 crore versus Rs.312.4 crore (YoY). Accumulate the shares of the company in intraday dips for medium term targets of Rs.36-41.

In January 2016, the government approved the Hybrid Annuity Model for highway projects. Under the Hybrid Annuity Model, 40% of the construction cost in a highway project is given by state-run NHAI, while developers will have to arrange for 60% project cost. ARSS Infrastructure Projects Ltd is a construction and contracting company with main presence in Railway and Roadwork. The company is commanding better PAT margin due to its focus largely on Railway projects, where the NIM is high. 

The IPO of ARSS Infrastructure Projects made a strong debut on the domestic bourses in March, 2010 gaining nearly 67%. The shares of ARSS Infrastructure Projects which was issued at Rs.450 per equity shares got listed on the NSE at a premium of 40% or at Rs.630 and further soared to hit an intra-day high of Rs.751.80 before ending the trading session at Rs.750. 

#The shares of Vijaya Bank today made a comeback to Rs.57.60 before closing at Rs.52.70. It is a better placed bank and would do well in the coming days, as it gets merged with Bank of Baroda. It fell with low volume today and is likely to give a bounce from the CMP. Accumulate!! 

#The stock of Magadh Sugar and Energy Ltd which was recommended to the Premium Members at Rs.106.80 on last Sunday today hit the Upper Circuits. The stock had given huge returns to the Premium Members in just 4-days. For targets and other details, you need to join the Premium Services. 

#Complete profit booking was suggested for the scrips of Rana Sugars Ltd (Rs.5.20) which made an intraday high of Rs.5.45 and Bajaj Hindustan Sugars Ltd (Rs.11.57) which made an intraday high of Rs.12.07 in the BSE. 

#Profit booking was suggested to the Premium Members on the scrip of Kwality Ltd at around the price band of Rs.24-25 some days back. The stock made an intermediate high of Rs.27-plus and is now trading at Rs.17.90. The stock had doubled from the recommended price of around Rs.11-12. However, I feel the share might test its earlier low, before giving a fresh bounce. If you are still holding the same, book complete profits and exit the counter. 

#The stock of 63 Moons Technologies Ltd  (Rs.83.50) today closed near the  days low of Rs.83.10. Yesterday, profit booking was suggested in the counter. With no immediate triggers and the markets on a downtrend, the scrip could fall back to Rs.79-77 ranges. Book complete profits. 

#I will be recommending a momentum counter to the Premium Members next week. If anyone wants to know the name in advance they should either join the Premium Information Service or trade through my associated brokerage house. Now a discount scheme is going on for both the yearly and life-time subscription packages. 

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

Winning Strokes: Think Different

The market declined sharply, extending yesterday's steep fall. Investors were nervous after US President Donald Trump imposed 10% tariffs on an additional $200 billion worth of Chinese imports, and warned of duties on more products if China took retaliatory action. Domestic shares spent most of the trading session in negative territory although the reaction was a little muted. However, selling pressure intensified in the last hour of trade.

The Sensex fell 294.84 points or 0.78% to settle at 37,290.67, its lowest closing level since 2 August 2018. The index rose 159.93 points, or 0.43% at the day's high of 37,745.44. The index fell 342.66 points, or 0.91% at the day's low of 37,242.85.

The Nifty 50 index fell 98.85 points or 0.87% to settle at 11,278.90, its lowest closing level since 2 August 2018. The index rose 33.70 points, or 0.30% at the day's high of 11,411.45. The index fell 108.80 points, or 0.96% at the day's low of 11,268.95.

Among secondary barometers, the BSE Mid-Cap index fell 1.49%. The BSE Small-Cap index fell 1.51%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On BSE, 881 shares rose and 1805 shares fell. A total of 162 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Realty index (down 3.13%), the S&P BSE Power index (down 2%), the S&P BSE Industrials index (down 1.77%), the S&P BSE Telecom index (down 1.75%), the S&P BSE Bankex (down 1.68%), the S&P BSE Utilities index (down 1.68%), the S&P BSE Metal index (down 1.49%), the S&P BSE Auto index (down 1.47%), the S&P BSE Finance index (down 1.42%), the S&P BSE Capital Goods index (down 1.36%), the S&P BSE Basic Materials index (down 1.31%), the S&P BSE Consumer Discretionary Goods & Services index (down 1.17%), the S&P BSE Oil & Gas index (down 1.08%), the S&P BSE Energy index (down 0.92%) and the S&P BSE Teck index (down 0.82%), underperformed the Sensex. The S&P BSE Healthcare index (down 0.72%), the S&P BSE IT index (down 0.7%), the S&P BSE Consumer Durables index (down 0.42%) and the S&P BSE FMCG index rose 0.86%), outperformed the Sensex.

Banks shares declined. Among private sector banks, Federal Bank (down 3.09%), Axis Bank (down 2.81%), ICICI Bank (down 2.07%), City Union Bank (down 1.84%), IndusInd Bank (down 1.13%), Kotak Mahindra Bank (down 1.11%) and RBL Bank (down 0.21%), edged lower. HDFC Bank (up 0.05%) and Yes Bank (up 1.43%), edged higher.

Among public sector banks, Union Bank of India (down 9.11%), Indian Bank (down 8.33%), Canara Bank (down 7.66%), Syndicate Bank (down 5.84%), Andhra Bank (down 5.08%), Punjab National Bank (down 4.46%), State Bank of India (down 4.06%), Bank of India (down 3.91%), IDBI Bank (down 3.02%), Central Bank of India (down 2.01%) and Allahabad Bank (down 1.11%), edged lower. Bank of Maharashtra (up 0.95%), United Bank of India (up 4.44%), Corporation Bank (up 6.19%), Punjab & Sind Bank (up 6.35%) and UCO Bank (up 6.98%), edged higher.

State-run Bank of Baroda slumped 16.03% after the government's decision to merge it with Dena Bank (up 19.75%) and Vijaya Bank (down 5.69%) failed to enthuse investors.

Bank of Baroda said it has received a communication from Ministry of Finance, Government of India that the Alternative Mechanism (AM) after consultation with Reserve Bank of India (RBI), has decided that Bank of Baroda, Vijaya Bank and Dena Bank may consider amalgamation of the three banks. Accordingly, a meeting of board of directors to consider the amalgamation will be convened by the bank shortly. The announcement was made during trading hours today, 18 September 2018.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 72.715, compared with its close of 72.495 during the previous trading session.

President Donald Trump will impose 10% tariffs on $200 billion worth of Chinese imports, and those duties will rise to 25% at the end of the year, according to a Monday announcement. The White House removed about 300 goods from a previously proposed list of affected products, including smart watches, some chemicals and other products such as bicycle helmets and high chairs. Beijing has already warned that it will retaliate against the measures.

The US has already levied tariffs on $50 billion worth of Chinese products. Beijing responded with measures targeting $50 billion on American goods, raising fears about damage to the US farm industry. Earlier this month, reports suggested that the US was seeking to restart trade talks with China.

Meanwhile in the US, the New York Fed's Empire State index fell 7 points to 19 in September.

In the global commodities markets, Brent for November 2018 settlement was up $1.25 a barrel at $79.30 a barrel. The contract had fallen 4 cents, or 0.05% to settle at $78.05 a barrel during the previous trading session.

#The scrip of ARSS Infrstructure Projects Ltd recommended to the Premium Members at around Rs.26 today hit the buyer freeze at Rs.28.10 in the BSE. We are looking for targets of Rs.32-35 in the coming days. 

#Profit booking was suggested in the scrip of BHEL some days back at around Rs.81-82. The scrip today broke a major support and closed at Rs.73.85 in the NSE. The short term traders should stay away from this stock for the time being, because of China factor. 

#The scrip of Rana Sugars Ltd touched the upper circuits today, before closing at Rs.5.15. The sugar stocks were on uptrend during the last few days following the government of India's policy of hiking the price of ethanol by 25%.

#The stock of Bajaj Hindustan Sugar Ltd recommended to the Premium Members at around Rs.8.50 on last Sunday, hit another buyer freeze today at Rs.11.20 in the NSe. For the targets and other details you need to join the Premium Services.

#Profit booking was suggested in the stock of 63 Moons Technologies Ltd (Rs.85.05), after it touched an intraday high of Rs.87.25 in the NSE. The stock was recommended several times in this blog during the last few months, starting from Rs.67 to Rs.77.

#The correction seems to be over for the scrip of Mandhana Industries Ltd (Rs.6.75) after its whirlwind rally from Rs.4.65, following good quarterly numbers. If the bounce happens then we can look for targets of Rs.9.7-14. Accumulate on dips after the scrip price stabilizes. 

#The share of Vijaya Bank  Ltd (Rs.56.50) was recommended today to the Premium Members today for short term target of Rs.72 on the premise that it has only  4.1% of NPL as compared to 11% of Dena Bank Ltd (Rs.19.10); and therefore is better placed to get benefited due to its merger/association with a large bank like Bank of Baroda (Rs.113.10).

#At a time when PSBs are thinking in terms of lending to companies that eventually failed to service their debts, the state owned Life Insurance Corporation of India (LIC), country’s largest life insurance company, has made significant investments in some of these companies. To know the names of few promising ones from the list, you need to join the Premium Service. Also, if you have lost money in earlier pursuits, then don't lose hope, bring fresh funds; I will help you recover your losses (But no margin trading please). This is the best time to kick-start your investment, especially when most of the stocks in the small and mid cap segments are at attractive valuations. What is needed is cherry picking from the lot.....!! 

#The share or Monnet Ispat &  Energy Ltd recommended in this blog around Rs.11-12 levels got locked in the Upper Circuit today at Rs.24,55. The scrip has doubled from the recommended price in the last couple of months. 

#For more on the markets and to make money on consistent basis, you need to join the Premium Information Service or trade through my recommended brokerage house. There is a Discount Scheme going on, both on the Yearly Subscription and Life Time Subscription Packages. 

~~with inputs from Capital Market - Live News

Market Mantra

Key benchmark indices were trading with small gains in early trade. At 9:17 IST, the barometer index, the S&P BSE Sensex, was up 32.43 points or 0.09% at 37,617.94. The Nifty 50 index was up 12.05 points or 0.11% at 11,389.80. Sentiment was fragile as US-China trade tensions took a renewed toll on investor appetite for risky assets.

Among secondary barometers, the BSE Mid-Cap index was up 0.35%. The BSE Small-Cap index was up 0.22%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 649 shares rose and 303 shares fell. A total of 37 shares were unchanged.

Overseas, Asia markets were mixed on Tuesday following an escalation in trade tensions between the United States and China. US stocks closed lower Monday, with the S&P 500 and the Dow snapping multi-day win streaks.

President Donald Trump will impose 10% tariffs on $200 billion worth of Chinese imports, and those duties will rise to 25% at the end of the year, according to a Monday announcement. The White House removed about 300 goods from a previously proposed list of affected products, including smart watches, some chemicals and other products such as bicycle helmets and high chairs. Beijing has already warned that it will retaliate against the measures.

The US has already levied tariffs on $50 billion worth of Chinese products. Beijing responded with measures targeting $50 billion on American goods, raising fears about damage to the US farm industry. Earlier this month, reports suggested that the US was seeking to restart trade talks with China.

Meanwhile in the US, the New York Fed's Empire State index fell 7 points to 19 in September.

Back home, Tata Motors (down 0.73%), Wipro (down 0.55%), TCS (down 0.41%), State Bank of India (down 0.4%), IndusInd Bank (down 0.39%), Bharti Airtel (down 0.34%), Axis Bank (down 0.27%), ITC (down 0.2%) and HDFC (down 0.17%), were the major Sensex losers.

Hindustan Unilever (up 1.78%), Tata Steel (up 1.06%), Sun Pharmaceutical Industries (up 0.95%), NTPC (up 0.78%), Asian Paints (up 0.68%), Yes Bank (up 0.58%), ONGC (up 0.47%) and Mahindra & Mahindra (up 0.42%), were the major Sensex gainers.

#Rana Sugars Ltd and Bajaj Hindustan Ltd recommended to the Premium Members on last Sunday hit another buyer freeze in the NSE at Rs.5.50 and Rs.11.20 respectively, while other prescribed counters Dwarikesh Sugar Industries Ltd, Shree Renuka Sugars Ltd, and Magadh Sugar & Energy Ltd touched Rs.32.35, Rs.18.35, Rs.141.75 respectively in the NSE during intraday. What to do with the Sugar Counters? Join the Premium Service to stay ahead of others. 

#The scrip of HDIL recommended to the Premium Members on last Sunday around Rs.29, today made a high of Rs.30.65 in the NSE. With the CPI inflation hitting a low of 3.69% the rate sensitive sector is likely to do a little better in the immediate future. For targets and other news you need to join the Premium  Service. 

#Exit out of the scrip if Nitesh Estates Ltd either near the recommended price during the intraday rise, with no profit or less or with slight loss. The stock is not performing as expected. The call is closed. 

#The scrip of MOIL Ltd recommended to the Premium Members at around Rs.189, today made a high of Rs.198.90, achieving the 1st target of Rs.197. The long term investors can add the scrip on any intraday declines. Manganese Ore India Ltd (MOIL) is the single largest producer of manganese ore in the country with an annual production of 1.1 million tonnes (MT). It is one of the Navratna Companies of India.

#The government decision to merge three state-run banks came as a surprise for the three lenders but not for the market men tracking the banking sector.  Analysts were long advocating such a move, given the inadequate capital and deteriorating asset quality of smaller PSU banks.
Now, why should we buy the shares of Dena Bank Ltd even though it has hit the UC at Rs.19.10 or look for exit tomorrow at intraday highs? Among the three banks which of them looks the best for investment? Join the Premium Information Services. 

#Festive Discount Scheme is going on for the NEW subscribers of the Premium Information Services. This will continue till 31st December, 2018. However, I am now announcing special discounts for the small investors (Portfolio below Rs.1 lakhs), provided they do not FAKE their IDENTITY. 

~~Powered by Capital Market - Live News.....

Winning Strokes: Think Different

Key equity indices edged higher on Wednesday after two consecutive sessions of sharp falls. The sentiment, however, was fragile as the rupee touched a fresh low, stoking fears of an interest rate hike by the central bank at its next meeting in October.

The Sensex rose 304.83 points or 0.81% to settle at 37,717.96. The index rose 339.45 points, or 0.91% at the day's high of 37,752.58. The index fell 71.13 points, or 0.19% at the day's low of 37,342.

The Nifty 50 index rose 82.40 points or 0.73% to settle at 11,369.90. The index rose 93.25 points, or 0.83% at the day's high of 11,380.75. The index fell 37.30 points, or 0.33% at the day's low of 11,250.20.

Among secondary barometers, the BSE Mid-Cap index rose 0.52%. The BSE Small-Cap index fell 0.27%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1133 shares rose and 1525 shares fell. A total of 186 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Telecom index (down 0.76%), the S&P BSE Realty index (down 0.35%), the S&P BSE Bankex (down 0.02%), the S&P BSE Oil & Gas index (up 0.05%), the S&P BSE Finance index (up 0.13%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.22%), the S&P BSE Auto index (up 0.25%), the S&P BSE Teck index (up 0.34%), the S&P BSE Utilities index (up 0.36%), the S&P BSE IT index (up 0.46%), the S&P BSE Industrials index (up 0.52%), the S&P BSE Power index (up 0.60%), the S&P BSE Energy index (up 0.62%), the S&P BSE Consumer Durables index (up 0.66%) and the S&P BSE Healthcare index (up 0.76%), underperformed the Sensex. The S&P BSE Basic Materials index (up 0.93%), the S&P BSE Capital Goods index (up 1.06%), the S&P BSE Metal index (up 1.52%) and the S&P BSE FMCG index (up 2.40%), outperformed the Sensex.

In the foreign exchange market, the rupee extended losses against the dollar. The partially convertible rupee was hovering at 72.055, compared with its close of 72.695 during the previous trading session. Rupee hit a low of 72.915 in intraday today.

Asian stocks fell on Wednesday, as investor confidence was chilled by the latest round of verbal threats in an intensifying US-China trade conflict. China will seek permission from the World Trade Organization (WTO) to impose sanctions on the US next week, according to the WTO's meeting agenda. China will seek authorization at a special meeting of the WTO's Dispute Settlement Body on Friday, 21 September 2018.

The request comes at a time of escalating trade tensions between the world's two largest economies, with US President Donald Trump saying last week he was ready to go on tariffs for another $267 billion on Chinese goods if he wants. That would follow planned charges on $200 billion of Chinese goods in several industries, including technology. Beijing has vowed to retaliate if the US takes any new steps on trade.

On the data front, small-business sentiment climbed to a record in August, according to the National Federation of Independent Business. Separately, the number of job openings in the US climbed to a record 6.94 million in July while the US budget deficit in August was $211 billion, nearly double the gap during the year-ago period.

Meanwhile, the US budget deficit in August was $211 billion, nearly double the gap during the year-ago month, the Congressional Budget Office estimated late Monday.

In the global commodities markets, Brent for November 2018 settlement was up 2 cents at $79.08 a barrel. The contract had risen $1.69 a barrel or 2.18% to settle at $79.06 a barrel during the previous trading session.

#The stock of Manganese Ore India Ltd (MOIL) was recommended to the Premium Members this week at around Rs.189. The stock made a high of Rs.195.80 in the NSE. MOIL is the single largest producer of manganese ore in the country with an annual production of 1.1 million tonnes (MT). It is planning to increase the number of mines in central India by 2020-24 which will help it to increase the production.

#The stock of Mandhana Industries Ltd today made a high of Rs.8.60, before closing at Rs.7.80. The stock may not give a closing below Rs.7. The ace investor, Rakesh Jhunjhunwala had picked up 12.74% stake in Mandhana Retail Ventures, that holds licences to manufacture and sell Salman Khan's Being Human brand of clothing and fashion accessories. Mandhana Retail has the global licensing arrangement with Being Human— The Salman Khan Foundation—to manufacture and distribute textile products and the royalties from the clothing line which support education and healthcare initiatives of the foundation.

#The scrip of TV Vision Ltd closed flat at Rs.6.27 in the BSE, while the shares of Sri Adhikari Brothers Television Network Ltd closed at Rs.7.20 in the NSE . The company has come up with a new plan for meeting the debt obligations with the lenders. 

#I will be recommending a short term momentum counter to the Premium Members either tomorrow or Sunday. Those who want to know the name, should subscribe to my Premium Service. Now, festive discount is going on......

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