Today's Calls

1. Buy Vedanta Ltd (or average) at Rs.251.15, T: Rs.257-261, SL: Rs.247.  According to MoneyControl.com:

Morgan Stanley has initiated coverage on Vedanta with an overweight call, citing the company’s potential to grow going forward.

The research firm feels that it is the fastest-growing aluminum and zinc company globally. “The balance sheet risk has subsided, which has positioned VEDL on par with global miners and better than local peers,” it said in a report. Additionally, it forecasts a 30 percent FCF CAGR for FY17-19.

Meanwhile, the company in February reported a 4.5-fold jump in third quarter consolidated profit at Rs 1,866 crore on year-on-year basis, boosted by operational performance and low base in year-ago period despite sharp rise in tax expenses.

Revenue during the quarter increased 29.6 percent to Rs 20,393 crore compared with Rs 15,731 crore in corresponding quarter of last fiscal, driven by metals business.

"Revenues in Q3 were driven by higher volumes at iron ore due to recommencement of operations, ramp-up of volumes at the aluminium and power businesses and higher volumes at Copper India and Zinc India. This was partially offset by lower volumes from oil & gas, and Zinc International due to closure of the Lisheen mine, in Q3 FY2016," the company said in its filing.

The company also outlined big plans to invest in Jharkhand last month. Keen to get a strong foothold in Jharkhand, Agarwal said that he had "big plans" for the state but initial foray will be with USD 1 billion investment that includes setting up a 1 million tonne steel plant.

Dubbing Jharkhand as "a diamond in the crown of the world", Vedanta Resources Group Chairman Anil Agarwal said the state is "full of potential" and Vedanta has big plans for it.

"There is a lot of potential...This (Jharkhand) is a real Australia in India with its huge natural resources. We have abig plan but we will start with the medium size or small size project...We intend to set up a one million tonne of steel plant," Agarwal told PTI in an interview.

2. Those who have entered in Inox Wind Ltd at around Rs.169.30-170, should book at least 80% of profits at Rs.185 and hold the rest with a SL of Rs.181. Reentering on dips is suggested in intra - day dips. However, SL at Rs.179 is a must, for fresh entries.

Today's Calls

1. Buy ACC Ltd at Rs.1407, T: Rs.1425-1450, SL: Rs.1386. This is a pure chart based call.

2. Those who have bought the shares of Inox Wind Ltd yesterday at around Rs.169.30-170, can book partial profits at Rs.173 and hold the rest with a SL: Rs.170.40.

3. After Inox Wind Ltd (CMP: Rs.178), you can buy another power company which is alao into green energy: Buy Reliance Power Ltd at Rs.46.10, T: Rs.51, SL: Rs.45. Reliance Power claims on its website it has the largest portfolio of power projects in the private sector based on thermal and renewable energy with an operating capacity of 5,945 Megawatt.
Reliance Power Ltd posted a net profit of Rs. 434.30 million for the quarter ended December 31, 2016 as compared to Rs. 3493.40 million for the quarter ended December 31, 2015. Total Income has decreased from Rs. 4072.70 million for the quarter ended December 31, 2015 to Rs. 1665.30 million for the quarter ended December 31, 2016.
The Group has posted consolidated net profit after tax, minority interest and share of profit / (Loss) of associates of Rs. 2757.00 million for the quarter ended December 31, 2016 as compared to Rs. 2410.60 million for the quarter ended December 31, 2015. Total Income has increased from Rs. 25568.00 million for the quarter ended December 31, 2015 to Rs. 29845.60 million for the quarter ended December 31, 2016.


4. Those who are holding the shares of Future Enterprises Ltd (Rs.17.70) from Rs.17.50-18, can look for short term target of Rs.32-35. Today, the scrip made a high of Rs.28.75. The retail space has started to gather steam post demonetisation.

5. Those who have again entered Tata Motors (Rs.468.30) above Rs.63 or did not exit yesterday (though SL was not hit), can look for targets of Rs.488-497.

6. The Indian markets are slowly recovering and at the end of the day, it should close in the green. The Nifty is now trading at 8,917.05 down 7.25 points or 0.08%.

Today's Call

1. Get of Tata Motors Ltd (Rs.462.50) as the scrip could slip to Rs.456-450. However, if it sustains above Rs.463, you can again enter.

2. The correction in Indian markets, may not be too deep, as it looks now. Buy Vedanta Ltd at Rs.252.10, T:Rs.261, SL: Rs.248. Analysts at JP Morgan remain overweight on Hindalco and Vedanta even though the stocks have materially outperformed the broader indexes over the last 12 months as the underlying commodity environment remains supportive and should allow balance sheets to de-lever.

3. Buy Inox Wind Ltd at Rs.169.30-170, T: Rs.210, SL: Rs.162. In a roughly INR-10-billion (USD 149m/EUR 141m) deal Leap Green Energy Pvt Ltd is to acquire the downstream wind power business of India's Inox Group, the Economic Times (ET) said, citing informed sources. An announcement of the acquisition agreement is coming, the sources have said.
India-based Leap Green, majority-owned by JPMorgan Chase & Co (NYSE:JPM), has about 450 MW of wind power capacity, while Inox Renewables is an independent power producer (IPP) with nearly 300 MW of wind farms in Rajasthan and Maharashtra, according to the report.



Buy Inox Wind; target of Rs 298: HDFC Securities. HDFC Securities' research report on Inox Wind

Inox Wind (IWL) reported yet another weak quarter as execution got impacted due to demonetisation. 200MW of WTGs were manufactured but could not be commissioned, which led to miss in estimates for the quarter. With improvement in execution, the mgmt expects 4QFY17E to be a disproportionately strong quarter.

Outlook
Our estimates factor in flattish volumes of 3.5GW/1GW for the industry/IWL. Still IWL would generate annual FCF of 5bn going ahead. Given a history of volatile quarterly performance we cut our target P/E multiple to 12x (earlier 15x) to arrive at Dec-18 TP of Rs 298/sh. Reiterate BUY.

Mint Money Through Daily and Short Term Trading

Dear investors, till the end of last year, I was mainly focused on short term delivery based trades of basically mid and large cap counters. This strategy did not work well in the last few months, as Narendra Modi's misguided missile "Demonetisation", sucked the blood out of the system. Therefore, I have changed the strategy a bit, as the demands of quick returns from clients poured in..

You must have seen that these days, I hardly recommend small caps, once my speciality; and have now zoomed more into daily trading of large and mid caps, where also money can be made, through meticulous planning. However, there is a RISK element in daily trading, which could be overcome to some extent through experience.

Therefore, if you can risk around Rs.50,000 to 1.25 lakhs (on which I will take a intra - day position of Rs.2 - 3 lakhs per trade), then I can trade on your behalf to generate cash for you through daily and very short term trades. I will not take any part of the profit in the first 6 - months of trade. After that I will take 30% of the profits.

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Today's Calls

1. Buy the shares of Tata Motors Ltd (India’s largest truck and bus maker), at Rs.467-468, T: Rs.487-491, SL: Rs.462.
Tata Motors' total sales in February grew by 2 percent year-on-year, backed by passenger vehicle sales, though commercial vehicle segment degrew 1 percent. The company sold 47,573 vehicles in February against 46,674 vehicles sold in year-ago month.
Many brokerage houses are BULLISH on the scrip -- Motilal Oswal has given a medium term target of Rs.653, while Credit Suisse has maintained outperform rating on Tata Motors after arm Jaguar Land Rover launched its fourth model the Range Rover brand called Velar News. 

2. Those who are holding the shares of Reliance Power Ltd (Rs.48.15), can continue to hold with a SL of Rs.46.60, for 2nd target of Rs.51

3. Buy the shares of Reliance Capital Ltd at Rs.543-544, T: Rs.560-572, SL: Rs.536. Reliance Capital Ltd, has sold its nearly 1% stake in popular digital payments firm Paytm for Rs.275 crore to China's Alibaba Group in a deal reaping huge gains for the Anil Ambani-led group firm.
The financial services arm of Reliance Group had invested Rs 10 crore for this stake in Paytm.

Todays Calls

1. Buy UCO Bank at Rs.37.45, T: Rs.39-41. In a significant development, lower provisions has

helped Uco Bank to cut losses by a third to Rs.437 crore for the December quarter, compared with Rs.1497 crore loss in the year ago period. Banks are a proxy to any economy, therefore after demonetisation fiasco, as the economy gathers steam, Banks are set to do well.

2. The share of Reliance Power has achieved my 1st target of Rs.47 (Rs.47.70, intra day high) , you can book some profits and hold the rest with a SL of Rs.46.40, for the next target of Rs.51.

3. As the RJio's Free service comes to a halt, we can look forward for higher targets for Reliance Communications Ltd (Rs.38.25). After demonetisation fiasco, the economy has started to.pick up, and the retail sector is slated to do exceptionally well.

4. Those who are holding my recommended SBI (Rs.272.30), from Rs.160-162, can continue to hold with aSL at Rs.246. However long term investors need not put a SL as the worst seems to be over for the banking sector. The stock of SBI is likely to cross Rs.300 soon.

5. Considering the recently published India's GDP data as fudged, even a 5% growth during Q3FY17 should be good; on those harsh situations. Now, that the banks are flush with funds, we could look forward for good GDP growth, provided the  Narendra Modi's government does not manufacture another demonetisation like self goals.
Bank results in the December quarter are significant as they have just come out of demonetisation and are just a quarter away from recognizing bad loans under RBI’s AQR.

Today's Calls

1. Buy IDFC Bank Ltd at Rs.62.35, T: Rs.68 -72, SL: Rs.61.40. In a significant development, The promoters holding in the company stood at 52.92 % while Institutions and Non-Institutions held 34.45 % and 12.63 % respectively. The stock is trading above its 50D and 200D SMAs. It's 200D EMA is placed at Rs.60.97.

Photo: Trustworthy No.1 

The private lender IDFC Bank, picked up a 5% stake in financial services major IIFL Holdings for over Rs.502 crore through an open market transaction, at the beginning  of this month. On that day the stock of IFL Holdings closed at Rs.322.90 in the BSE. Today it is quoting at Rs.384, adding value to the shareholders' wealth. Also, IDFC Bank will replace BOI in Bank Nifty from March 31, 2017. All these developments bode well for the shares of IDFC Bank Ltd. 

2. Those who are holding the shares of RCOM at (Rs.37) can continue to hold the same, with addition on every decline. Once the mergers get completed, the stock is likely to give huge returns to the patient investors.

3. The domestic markets are trading with caution ahead of the release of GDP data for Oct - Dec period -- the shares of telecom and public sector oil companies will be in focus; apart from Bank Nifty.

4. Buy Hindustan Oil Exploration Ltd at Rs.75.30,  T: Rs.78-82, - 86, SL: Rs.72.60. Hindustan Oil Exploration Company Ltd. engages into field of oil and gas exploration. Incorporated in the year 1983, Hindustan Oil Exploration Company Ltd. is based in Vadodara.

Hindustan Oil Exploration Company (HOEC), which won rights to develop two already discovered, marginal fields in a recent government auction, says it sees early monetisation of the one in Arunachal Pradesh.

The Kherem field in Arunachal Pradesh lies about 60 km from HOEC’s Dirok field, which is expected to start producing gas next month. Kherem is a small field with 3 million barrels of oil — that can produce 200 barrels a day to start with — and 17 billion cubic feet of gas. Twinning Kherem with Dirok will neither be difficult nor expensive, P Elango, Managing Director, HOEC, told BusinessLine. The 16.45 sq km Kherem field, discovered by Oil India Ltd (OIL) in 1994, has a couple of exploratory wells doing down.

Today's Calls

1. Buy Reliance Power at Rs.45.80,T:  Rs.49-51, SL: Rs.45. Reliance Power Ltd's net profit in

the December quarter rose 14.4% as its plants performed better.

The Anil Ambani-led power producer reported a consolidated net profit of Rs.275.70 crore, against Rs.241.06 crore a year ago. Net sales rose 14.2% to Rs.2,456.31 crore in the quarter from Rs.2,150.49 crore a year earlier. Moreover, the future of other power companies such as Torrent Power (Rs.205.30) and Adani Power (Rs.37.55) also looks bright; though the share price of these two power companies at their CMPs looks fairly valued -- therefore the best bet at this point of time is invariably Reliance Power Ltd.

2. Those who are holding Punj Lloyd Ltd (Rs.21.60), can continue to hold with a SL at Rs.20.50. The construction and power stocks will be a major beneficiary, as the economy picks up steam, post demonetisation.

3. Those who are holding 63 Moons Technologies Ltd (Financial Technology) from Rd.81.70 can average the scrip, but should keep a SL of Rs.76, for any short term.trade. CMP: Rs

81.50.

4. Those who are holding the shares of Reliance Communicatioms Ltd ((Rs.37.10), can continue to hold the same and add in all declines. This stock will make millionaires out of patient investors.

5. Buy Kolte Patil Developers Ltd at Rs.101.50, T: Rs.115. SL: Rs.96. According to.the analysts the company is likely to gain from the Budget proposal, to accord infrastructure status to affordable housing.
Pune-based realty developerKolte-Patil Developers has reported 30% on-year rise in net profit at Rs 18 crore for the quarter ended December. Revenue for the quarter rose 27% to Rs 226.4 crore, the company said in its earnings release. 
During the quarter, the company reported new sales bookings of 0.32 million sq ft against 0.52 million sq ft a year ago and 0.57 million sq ft in the previous quarter. The value of area sold during the quarter stood at Rs 195 crore as against Rs 304 crore a year ago and Rs 329 crore in the preceding quarter.

Today's Calls

1. Buy 63 Moons Technologies (Financial Tech) at Rs.82, T: Rs.93, SL: Rs.79.63 Moons Technologies, formerly Financial Technologies (India),  earlier set up an investment committee and has  now a new policy to protect the company’s wealth. The company, is sitting on around Rs .2,000 crore cash after selling its stakes in various firms.. 63 Moons Technologies, formerly Financial Technologies India, has introduced a trading platform for the equity markets. The platform uses artificial intelligence, social, mobile, analytics and cloud, cognitive computing and natural language processing.
Named Odin Voice and Odin Bot, the conversational user interfaces could disrupt the way people transact. “This technology will revolutionise brokerage services and be the trendsetter in financial technologies,” said Keshav Samant, president and chief executive officer, brokerage technology solutions, 63 Moons Technologies.
63 Moons Technologies has been offering financial technology solutions for over two decades. Its innovations include products and platforms such as Odin, iWin, Net.net, STP Gate, MCX, IEX, SMX & DGCX.

2. Those who are holding Punj Lloyd should now keep.a SL of Rs.21.40 and keep holding for targets of Rs.27-29.

3. Those who are holding Rolta Ltd should book profit at Rs.64.40 and exit the counter, the stock.is not performing.

Today's Calls

1. Buy Dena Bank Ltd at Rs.37.30-37.50, T: Rs.40-41, SL: Rs.36.60. Dena Bank, like all other

banks, has had a dream-run on the deposits front during the 50 days following demonetisation. Copious deposit inflows in the form of scrapped high-denomination notes helped the bank shed bulk deposits amounting to about ₹9,000 crore. Meanwhile, Dena Bank reported a net profit of Rs.35.31 crore inQ3FY17, as compared to Rs.662.85 crore loss reported last year for the same period. Public sector Dena Bank is also in talks with few insurance companies to raise capital, its CMD Ashwini Kumar said, this week. Kumar said for Dena Bank, the worst was over. "For my bank, the worst phase is over. Things postdemonetisation is now improving", he said. 

2. Those who are holding the shares of Reliance Communications Ltd (Rs.32.95), can look for good days ahead, as the company goes for merger with Aircel -- SSTL and Telenor. It will also get the backing of Mukhesh Ambani, following infrastructure and spectrum tie ups. We can look forward for levels of Rs.47-55 in the coming days; from where it fell.

3. Those who are holding the shares of JSW Energy (Rs.61), can continue to hold with a SL at Rs.57, for targets of Rs.67-68. However, the problem with this scrip, inspite of having fundamental, is the lack of interest from retail players. The company has a complex business model, which many retail investors cannot fathom.

4. Those who have invested in Punj Lloyd Ltd (Rs.20.10), should wait for the scrip to give a closing above Rs.20.50, before taking fresh entry. However, those who are already invested should keep a SL of Rs.19.60.

5. Brokerage Call: Buy IDFC Bank Ltd at Rs.63.50, T: Rs.68-72, SL: Rs.60.

Today's Calls

1. Buy JSW Energy Ltd at Rs.60 -- 60.50, T: Rs.67-68, SL: Rs.57. The good

news is that the Vijaynagar plant has commenced a short-term PPA at Rs.4.18/unit approved by the regulator. The company said that it is raising long term funds through the issuance of redeemable non-convertible debentures upto Rs 1,000 crore by way of a private placement.
The company said its wholly-owned subsidiary, Karcham Wangtoo Hydro project of Himachal Baspa Power Company has filed a petition for determination of final tariff with Central Electricity Regulatory Commission (CERC). Pending the receipt of final tariff order, the revenue from sale of power under long term power purchase agreements are being recognised in terms of expected tariff as per the available guideline. The hydro projects were acquired during September 2015, it said.
Though JSW Energy Ltd still has 1160MW open-ended capacities, it is likely to get a good value, as the demand for power increases, post demonetisation. 

2. Those who are holding Reliance Communications Ltd (Rs.33.10) can continue to do the same for a shirt term target of Rs.37-38. Reliable Communications Ltd is now virtually (Unofficially) RJIO.

3. Those who have taken position in Punj Lloyd Ltd (Rs.20.20) yesterday should wait to see if it crosses above Rs.20.50 or not to take fresh entry. On breaking of Rs.19.60, it becomes a sell.

4. Those who have entered Reliance Power Ltd, should continue to hold with SL of Rs.41.80.

The power sector is set to do well as the economy picks up steam, post demonetisation.

5. Buy Rolta India Ltd at Rs.63.50, T: Rs.71-72, SL: Rs.61.60. Today most of the IT and defence stocks are doing well and hence Rolta Ltd should also move up in tandem. 
In earnings reported earlier, net profit for Q3FY17 came at Rs 98.7 crore against Rs 127.3 crore quarter-on-quarter, while total income was up 0.2 percent at Rs 343.9 crore versus Rs 343.2 crore.
A share of a company reporting Rs.98.7 Cr quarterly profit should trade above Rs.100 as against the CMP of Rs.63.50. Moreover, yesterday volume of 52,000 in the BSE will be crossed today, as brisk buying is seen in the counter.

Today's Calls

1. Prajay Engineers Syndicate Ltd (Rs.12.20) came out with a reasonably good bottom line in Q3FY17.
With affordable housing being the catchphrase of Budget 2017, the focus could well shift from core areas of Hyderabad to its cheaper peripheries, helping the companies like Prajay Engineers Ltd.
The city's outskirts, where land rates are cheaper, are perfect destinations for such ventures that have so far not been economically exploited. The benefits extended to this segment in FY18 budget is very encouraging.
Apart from an increased carpet area, affordable housing was also awarded the 'infrastructure status'. This will result in bigger homes for buyers and lower interest rates for developers. The average projected cost of these homes ia generally around Rs 15- Rs 20 lakh.
This will push more local players (Prajay Engineers Syndicate Ltd is a local player) to take up small projects that they shied away from until now.  The investors are suggested to hold the scrip with a SL of Rs.11.70. The scrip could again attempt to cross Rs.16, in the coming days.

2. Those who are holding Punj Lloyd Ltd (Rs.20.50) can continue to add on declines, for  targets of Rs.27-31. Yesterday, the percentage of deliverable quantity to traded quality was high at 41.41%.
There is speculation that the company is working towards a turn around, leading to profits in the coming quarters. Some experts are of the view that the company expects an increase in construction activities and hopes to bags projects post budget 2017.

3. Those who are still holding the scrip of NBCC Ltd (Rs.286) from Rs.284, can book some profits at Rs.288 and can hold the rest with a SL at Rs.281. 

4. Those who are holding Reliance Power Ltd can continue to add on declines, for targets of Rs.47-51.

Today's Call

1. Buy Punj Lloyd Ltd at Rs.20.65, T: Rs.27-28, SL: Rs.19.60.

Punj Lloyd posted its Q3FY17 standalone results on February 11, 2017. Company’s

Photo: The ET

standalone revenue for the quarter came in at Rs. 997 crores, registering marginal 1.1% yoy decrease. This was in the wake of 2.7% yoy decline in revenues from EPC services that contributed nearly 93% to revenues.

EBITDA for the quarter came in at Rs 8.8 crores as against EBITDA loss of Rs 12.3 crores posted in Q3FY16. Company’s total expenses dropped 4.3% yoy to Rs 1018 crores.

Company posted a net loss of Rs 232 crores as against a net loss of Rs 309 crores in Q3FY16. The recovery in losses was driven by 122.5% yoy increase in other income. Company also posted a decline of 13.3% yoy in finance costs. However, finance cost stands very high at Rs 224 crores. [Source: India Infoline]

2. Those who have bought Reliance Infrastructure Ltd (Rs.533) yesterday, at Rs.528, can continue to hold positions for targets of Rs.545-552-571. The company as expected came out with good FY18Q3, numbers, which should propel the stock to higher levels.

3. Those who have entered Reliance Power at Rs.44.60, can continue to add in any intra-day dip for targets of Rs.47-51. There is no need to keep SL.

4. I hope most of you have booked profits in Future Enterprises Ltd at around Rs.30.80. The stock could come down to Rs.20-21, before moving up. The scrip if you remember was recommended at around Rs.17.50-18, last month.

Today's call

1. Buy NBCC Ltd at Rs.284, Rs.298, SL: Rs.277. NBCC Ltd, a Navratna Company has fixed February 21, 2017 as the record date for 1:2 bonus issue of shares. Exit at Rs.284 or near that price, for intra day traders. The stock is not preforming, as expected.

2. Buy Reliance Infrastructure at Rs.528, T: Rs.545, SL: Rs. 526. Temporary bottom seems to have been formed on daily chart.

3. Buy Reliance Power at Rs.43.60, T: Rs.45-47, SL: Rs.42. The Anil Ambani-led power producer reported a consolidated net profit of Rs275.70 crore, against Rs241.06 crore a year ago. Net sales rose 14.2% to Rs2,456.31 crore in the quarter from Rs2,150.49 crore a year earlier.

Reliance Power's Sasan project is the world's largest power generation plant to be registered under the UN framework, entitling the company to earn 22.4 million carbon credits.

Arun Jaitley’s 10% tax on income from carbon credits is good for companies like Reliance Power Ltd.

According to the explanatory memorandum to the Finance Bill, the income tax (I-T) department has been treating the income earned on transfer of carbon credits as business income subject to tax at the rate of 30%. 


Now Direct taxes code had recommended that income from sale of carbon credits be treated as business income. Therefore, the tax levy of 10% may be considered to be beneficial, for companies like Reliance Power Ltd (Rs.43.60).

Punj Lloyd Ltd: Buy

CMP: Rs.21.95

Last quarter saw some acceleration in execution in their projects. The management is positive on gradually improving macro environment and an enabling policy framework of the present government,  which is likely to improve the performance of the sector.  

A key development at the end of last year was the Cabinet decision on payment of arbitration awards by government agencies to EPC companies. This, the company, believe is a significant positive for the industry and will go a long way towards reducing debt.

Thus, implementation of the measures taken by the government like release of 75% of arbitral award to construction companies will help improve prospects over the medium term. Some construction companies have already received this payment in their escrow accounts against bank guarantees.

According to a recent  (rating agency) ICRA Report: the order book of construction companies is expected to improve with the government awarding sizable infrastructure projects over the last two years and many in the pipeline,

"The Government of Indias focus on infrastructure sector, particularly roads, railways, and urban infrastructure segments, is evident from the increased budgetary allocation to these sectors as well as the slew of measures taken to revive the sector," ICRA said in a statement.

Of all the infrastructure segments, the Railways have the highest planned capital outlay with Rs.8.56 trillion over the five-year period of 2015-2019. To keep up with this plan, the annual capital outlays for FY2016 and FY2017 was increased significantly.

The two ongoing dedicated freight corridors (eastern and western) are worth over Rs. 0.81 trillion. The other major capex planned is towards station modernisation and redevelopment and the high speed rail corridor (HSR) or bullet train project.

"These are likely to offer sizeable opportunities for the construction sector," the statement said.

"The budgeted capital outlay for the Railways is expected to increase from Rs 1.2 trillion in FY2017 to Rs 1.4 trillion in FY2018. However, given the 5-year plan this still would require to be ramped-up significantly in the remaining years. "The merger of the Railway budget with the central budget will provide an additional leeway for an increased outlay. While a major part of the outlay is expected to be towards the ongoing projects, sizeable newer projects are also expected to be awarded, providing construction opportunities, particularly for large players," said K Ravichandran, Senior Vice-President and Group-Head, Corporate Ratings, ICRA.

Moreover, valued at $180 million per annum in the 1970s, Indo-UAE trade is today around $50 billion, making the UAE India's third largest trading partner for the year 2015-16, after China and the US --- among the several private and public sector, Indian companies, working in the UAE, Punj Lloyd Ltd also figures in the list. 

Besides, a section of the market believes that Punj Ltd like HCC Ltd (Rs.41.80) is a BJP company; the former paying Rs.1 Crore in 2009 elections to the BJP. 

The promoters holding in the company stood at 36.14% while Institutions and Non-Institutions held 9.08% and 54.79% respectively. The total public holding stands at 63.86%. The stock is currently trading below its 50, 100, 150 nd 200 D SMA.

Therefore, buy the shares of Punj Lloyd Ltd around R.21.75-21.95 for short targets of Rs.27-28. The company is coming up with results on 11 February, 2017, where I am expecting a turnaround.

Note: The scrip was recommended to the Premium Group members today and it was displayed in the Premium Blog: http://sumanspeakspremiumservices.blogspot.com.

Winning Strokes: Think Different

The stock of HDIL (Housing Development & Infrastructure Ltd) was given a buy around the support of Rs.64.50 for a short term target of Rs.72 to the Paid Members on 1st February, 2017; based on the theme that Union Budget 2017 proposed several positive measures for the real estate sector, which includes Infrastructure status to affordable housing, which will reduce the cost of funding for the builders; the benefit of which can be passed on to the customers. The stock touched Rs.66.15, on last Friday. 

Join my Paid Service or Trade through my Brokerage House, to stay ahead of others. If you have a portfolio size of around Rs,2 lakhs and trade through my recommended brokerage house, then get Free Assistance in stock market. 

Future Enterprises Ltd was given a buy at around Rs.17.50-18, a couple of days weeks back. The scrip touched Rs.23.15 intra-day on last Friday. The investors are suggested to book some profits. 

Photo: The Hindu

The stock of Reliance Communications Ltd moved to Rs.40.40 in the NSE on last Friday clocking a volume of 87,824,962 shares. A special court last week dismissed the cases against the Maran brothers,  saying saying that the "perception or suspicion" was not backed by concrete evidence. The special CBI Judge O.P. Saini, in scathing observations, said that no minister or senior government officer would be safe if "contradictory oral statements" of witnesses are made legally acceptable. Judge Saini discharged Maran, his brother Kalanithi Maran, Kalanithi's wife Kavery Kalanithi, South Asia FM Ltd (SAFL) Managing Director K. Shanmugam and three companies -- SAFL and Sun Direct TV Pvt Ltd (SDTPL) and South Asia Entertainment Holdings Ltd, Mauritius in two related but different cases. Dismissing the cases against them, the judge said the oral statements, which were used by the CBI and ED to frame charges, were a "dangerous trend" and that if it were allowed "anybody and everybody in the government can be made to face prosecution". 

The court questioned that "If such oral statements, which do not flow from the record or find corroboration from anywhere from any circumstance, are given judicial recognition, what shall be the fate of the rule of law?" "If such a practice is allowed, anybody and everybody in the government can be made to face prosecution. "No Minister or Secretary would remain safe or for that matter anyone working in the department." "This is a dangerous trend and can strike at the root of rule of law and the constitutional democracy as wrongdoers can gang up against those, who, by the perusal of record, are innocent," the court opined.

In another major development, the Chief Justice Khehar of Supreme Court, flanked by Justices N.V. Ramana and D.Y. Chandrachud, orally observed during Aircel-Maxis hearing: "He [Mr. Ananda Krishnan] does not care for the law of this country. He does not care for the Supreme Court of this country... then we will punish him... we will see to it,” 

Mr. Singhvi, the counsel for Aircel, urged caution on the court’s part, saying a restraint order meant to enforce the appearance of the Maxis owner and the other three would harm Aircel. The lawyer said Aircel had no control over Mr. Ananda Krishna and was not his “alterego.” “Why should Your Lordships punish me for something done by Mr. Ananda Krishnan,” asked Mr. Singhvi.

I feel Mr.Sanghvi has a valid point and I would make a humble request to the Honorable Bench of the Supreme Court, to maintain some sanctity of law of the land and act prudently; without any individual bias and whims. The small investors who are holding positions in Reliance Communications Ltd, should not suffer because of one of the promoters did not turn up in a court. This attitude of the honourable Supreme Court Bench to punish "Ram" for the Faults of "Rahim" is very unfortunate and puerile. I would therefore, like to ask the Supreme Court Bench on the basis of which (legal) section, the court is entitled to sell the shares of company, because one of its promoters has failed to appear in a court. The law is blind to emotions and I feel, not only the merger of Aircel - Reliance Communications Ltd, but also the shareholders of both the companies, should not suffer because of some individuals. Besides, this kind of attitude could tarnish the image of the honourable Supreme Court (and make it look like a Rogue) and I strongly feel, it will not set a good precedence for the Indian Jurisprudence's history. The court should instead should ask the Narendra Modi government to request its Malaysian counterpart to find ways to bring Mr.Ananda Krishnan to India, if his presence is absolutely necessary. 

Important

1. Prajay Engineers Syndicate Ltd (Rs.14.93) has hit the upper circuits in both the exchanges. Where is the stock heading ?  Can it cross Rs.27, considering that Hyderabad is now a happening city and lot of real estate opportunities are avaliable in Vijaywada too. Trade through my recommended brokerage house and get my assistance FREE. 

2. Buy Future Enterprises Ltd near the support of Rs.17.50 . If you are buying at the CMP of Rs.18.45, then please do keep a SL at Rs.17.30. Targets: Rs.28 - 31.

3. Reliance Communications Ltd (Rs.31.40) is better placed among all the incumbent Telecom players to handle the RJio menace. It is because it has tie up with RJio as regards infrastructure and spectrum sharing -- RCom has one of the highest holding of the  lucrative 800 MHz spectrum used for (highly penetrative) 4G transmission; apart from 1800 MHz category. RCom is gettin royality from RJio for the use if these spectrums.

Today's Calls

1. But LT Foods Ltd at Rs.367, T: Rs.377-381, SL: Rs.362. Exit out of LT Foods at Rs.371, the stock is not performing according to expectations.

2. Buy Torrent Power in intra-day dips at Rs.191, T: Rs.197-201, SL: Rs.187.

3. Buy State Bank of India at Rs.259, T: Rs.270, SL: Rs.252.

Today's Calls: BTST

1. Buy Reliance Capital at Rs.461,T: Rs491, SL: Rs.455.

2. Buy IRB Infrastructure above Rs.220.50,T: Rs.235, SL: Rs.215

3. Intra day buy Axis  Bank at Rs 486, T: Rs.491,SL: Rs.476.

Today's Calls

1. Buy KEC International Ltd at Rs.151, T : Rs.159 - 167, SL - Rs.139.

2.  Buy Dewan Housing Finance Corporation Ltd at Rs.273.40, T: Rs.285, Rs.265.