Important

1. Buy Reliance Defense and Engineering Ltd at Rs.61.50-62, for short term targets of Rs.72-73. As

Photo: The Hindu

mentioned on Facebook yesterday, any border dispute is positive for the defense related companies; just on sentimental point of view. The stock is having a strong support at around Rs.61.50-61 ranges, which I believe will not be broken in the short term. However, please do keep a SL of Rs.58, for any short term play.

2. Those who are holding Rolta India Ltd (Rs.54) can book profits and exit the counter as the stock is not taking up the positive triggers. You can again enter, when it gives a closing above Rs.54.70.

3. Those who are holding Unitech Ltd since Rs.5-5.25, can book complete profits at around Rs.8.75-8.25 and exit the counter. The GST and RERA seems to be negative for the real estate companies, especially those who are having high debts. If you remember, I recommended the scrip before the GST came into effect. 

4. Those who either bought or averaged the shares of Power Finance Corporation Ltd at around Rs.122-123, can look for targets of Rs.132-135 in the short term, if it is able to cross Rs.129.50, where possibly the first resistance comes. However, this stock was recommended as a good dividend paying scrip and those who are looking for a hassle free, income every year can keep holding this blue chip. Do please keep a SL of Rs.116. This stock along with another scrip, was recommended to the Premium Premium members, some days back.

5. The shares of RCom Ltd (Rs.24.35) after giving a close above Rs.22.50 is doing well today. Those who are still holding the scrip can keep a SL of Rs.21.40 and look for targets of Rs.27-29.

Note: This recommendation was already placed in the Premium Blog today, for the Paid Group members. 

Winning Strokes: Think Different

Today, my recommended Unitech Ltd (Rs.7.80) hit the Upper Circuits in the NSE. I mentioned some days back in this blog, that Unitech Ltd would do well, if it closes above Rs.6.50; which happened yesterday. However, Unitech Ltd is beset with many problems, apart from the negative impact due to GST. The investors are therefore suggested to book some profits and hold the rest with a SL of Rs.7.20.

Rolta India Ltd (Rs.53.20) went for some intermediate correction after it broke out of the previous range. The traders are suggested to accumulate the scrip on Intraday declines for targets of Rs.92-97. 

Rolta India Ltd: Buy

CMP: Rs.51.55

For the full year FY17, the net profit of Rolta India Ltd, declined 15.34% to Rs.105.49 crore in the year ended March 2017 as against Rs.124.60 crore during the previous year ended March 2016. Thus Rolta India Ltd is still a profit making IT company, whose large chunk of revenues come from domestic space and hence not much affected by currency fluctuations. 

Sales declined 20.48% to Rs.1454.91 crore in the year ended March 2017 as against Rs.1829.71 crore during the previous year ended March 2016.

......but it is surprising that the shares of Rolta India Ltd (Rs.51.55) are trading well below its book value Rs.173.39....only because of debt....??!! 

But inspite of high debts the shares of Adani Groups are flying, same is the case of DLF Ltd, HDIL and many such companies.

Rolta India Ltd's market cap is only Rs.848.21 Cr  against FY17 turnover of Rs.1454.91 Cr. It has an EPS of Rs.6.40 (standalone basis). 

The company works in areas like big data analytics, into cloud transformation, smart cities, mobility, cyber security and enterprise security and into enterprise IT and digital transformation kind of work in defence. This is the happening sector, post GST.

Rolta India Ltd is at present doing integration type of work more..and as far as its basic fundamental revenue line is concerned, it is in the range of about Rs 750-800 Cr in a quarter and is stable, as its has reduced low margin work, according to it's CMD, Mr.K P Singh. The company has tied up with BEL for the much coveted BMS project (Indian Defense).

In early 2015,  there were media reports that the exclusive consortium of Bharat Electronics Limited (BEL) and Rolta India Limited has was selected as a development agency for a more than Rs.50,000 crore Battlefield Management System (BMS) project by the Defence Ministry.

The BMS project, categorised as a “Make” programme under the Defence Procurement Procedure (DPP), will be one of the largest solutions to be indigenously manufactured for the country’s defence, according to BEL, a Navaratna PSU.

It said the project is meant to deliver Command and Control capabilities to the fighting echelons, operating at the forward edge of the Tactical Battle Area at the Battalion and Combat Group levels.

The press release said Rolta has also invested significantly in BMS technologies indigenously and has over the years delivered cutting edge Command, Control, Intelligence, Surveillance and Reconnaissance (C2ISR) systems, to the Indian Military. Deployed across the country, military commanders use Rolta Technology as a force—multiplier.

It said as a part of the consortium, Rolta will execute its role and responsibility in areas of BMS application software development and applicable licensing, GIS software and GIS data services.

Rolta will also jointly work with BEL for manufacturing subsystems for the soldier system, the overall system design, integration, installation, commissioning and maintenance of the BMS solution.

On the other side the discussions are still on, among bondholders to negotiate a debt restructuring. It is pertinent to mention here that Rolta India Ltd failed to pay interest of $6.8 million (~Rs.46.6 Cr) due on its 2018 senior unsecured guaranteed notes even after the expiry of the 30-day grace period. S&P observed Rolta’s liquidity situation deteriorated in Q4FY16 due to mounting receivables mainly from the government of India’s defence security projects. So, who is responsible: is it not the destructive economic policies of the government ?

On the other hand the tightening of norms for H-1B visas under President Donald Trump’s "‘Buy American, Hire American" campaign and a strong INR, is likely to have least impact on companies like Rolta India Ltd, which derives most of it's revenues from the domestic market.

Caution: The IT services sector is currently grappling with changes in how clients meet their IT requirements. Instead of using armies of engineers that throng these service providers, clients are increasingly turning to advanced software — often provided by small start-ups — to eliminate or reduce the need for IT manpower. This has impacted the global IT services business, dominated by talent and companies from India.

Buy the shares of Rolta India Ltd at Rs.51.55, but please do keep a SL at Rs.46.50. T1: Rs.72, T2: Rs.77, T3: Rs.92.

Important

1. Continuing with the bad news for the construction sector, the government today hiked the

GST rate for the construction sector to 18% from 12% earlier, but removed land value from computation of tax liability. Construction of complex, building, civil structure, including a complex or building intended for sale to a buyer, wholly or partly, will attract a GST rate of 18%.
Therefore, it would be better if you exit from the construction sector, lock, stock.and barrel, till more clarity comes out. Book profits in Unitech Ltd at Rs.6.05 and exit the counter. 

2. Rolta India Ltd after lot of correction seems to have formed a base. One can take position on Rolta Ltd at Rs.51.40-51.70, for short term targets of Rs.71-72.

3. Those who are still holding RCOM Ltd (Rs.21.70), should think of averaging only above Rs.22.50. There is further bad news that the company wants to surrender a part of the spectrum in select circles, as it is unable to pay installments, from the revenue generated.

4. Those who were looking for dips to enter Power Finance Corporation Ltd (Rs.122), can think of entering at Rs.122-123, for a target of Rs.170. Premium Members have already been recommended another very good divided paying counter.

Winning Strokes: Think Different

Shares of realty firm Unitech Ltd today surged nearly 7% after it sold 74 acres of land in Gurgaon, Chennai and Hyderabad for Rs.260 crore to boost cash flow and complete ongoing projects. With real estate sector facing multi-year slowdown, Unitech has decided to surrender a big chunk of land parcel in Noida to the local development authority as the company has been unable to clear dues of about Rs.4, 000 crore. The company had huge Land bank, which it is slowly capitalizing. 

Moreover, as the Affordable Housing Segment booms in the Indian real estate markets, the home loans below Rs.10 lakh have surged by 43% in the last fiscal year (FY2017).

The shares of RCom today crossed Rs.22, intra day, but could not sustain. Unless the shares of RCom close above Rs.22.50, the supply will always take it down. Moreover, those who have lost money in RCom (Rs.21.75), should start with fresh funds, to come out as winner.

I have recommended Two Dividend paying stocks to.the Premium members and also updated them on Rasoya Proteins Ltd (Re.0.15).

Yesterday, someone asked me why I don't frequent Money Control Message Board (MMB) and put my views there. I said, I am not too interested in visiti a BROTHEL, run by some PIMPs in the form of MMB administers/moderators too often; however much Sensual it looks from a distance.

Today's Call

Buy Unitech Ltd at Rs.5.25 for a target of Rs.10. The stock price is connected to J P Associates Ltd -- while the stock of JP Associates has crossed Rs.17, the stock price of Unitech Ltd is still near Rs.5, which looks absurd when according to a report, the construction companies are likely to.get benefited from input tax credit in the GST.

"Unitech has applied for a surrender of 221 acres of land. The matter is still not processed. However, once the land is accepted, we will make an estimate of the due and give them concessions against the debt," CEO, Noida Authority, Amit Mohan Prasad, said.

The Unitech officers when contacted confirmed this transaction. When enquired if this transaction closed their dues with authority, Executive Vice President - Real Estate Development, Unitech Limited Rana Rajesh Kumar confirmed, "Once processed, this will make Unitech DEBT FREE when it comes to Noida authority." 

Winnings Strokes: Think Different 

1. Simplex Projects Ltd hit another upper circuits in the  BSE and closed at Rs.51.50, reaching .y first target of Rs.51. Now what to do with Simplex Projects Ltd?

2. Prajay Engineers Synsicatre hit the buyer freeze at Rs.12.84 in the BSE, before closing at Rs.12.72 , up 4.50%. The stock is heading towards Rs.15--15.50.

3. My recently recommend Punj Lloyd Ltd jumped to Rs.19.20 before closing at Rs.19.95 in the NSE, with a gain of 6.46%. The company in a BSE filing said that it does not have 60% or more of its accounts categorized as NPA by the Banks as on 31 March 2016. The stock is heading towards Rs.25, from where it fell. Today, I will recommend a good dividend paying stock to the Paid Group Members.

Winning Strokes: Think Different

1. Prajay Engineers Ltd was recommended around for long term investors at Rs.10.80-11.20, 

at the end of last month. The stock hit the upper circuits today and closed at Rs.12 in the NSE with good volumes. However, in the BSE, the scrip is still ruling below Rs.11.70. The medium term investors can look for targets of Rs.15-15.50.

2. Simplex Projects was recommended as buy on 10 May, 2017 in this blog at Rs.34.65, with a price target of Rs.51-52. The s rip hit the UC today and closed at Rs.49.85 in the NSE. The long term investors can book some profits and hold with a SL of Rs.46.40, for targets of Rs.56-57. Its sister concern Simplex Infra is doing the Metro Railway project in Mumbai.

3. Today, Bhusan Steel Ltd, which is reeling with a debt of ~Rs.90,000 Crore moved up by 9.28% and closed at Rs.64.15. Following the same trend I feel the stock of Punj Lloyd (Rs.17.90) should also move up tomorrow, as the infrastructure and Real Estate stocks have started to move up. Speaking to a Business Channel from the sidelines of India Conference in Japan, Mr.Atul Punj, the CMD of the Punj Lloyd group, said the government is working to resolve the non-performing assets (NPA) issue. He said the EPC sector has made several doable recommendations to resolve the issue because EPC is not a sector where 5:25 package will work.
The company is trying to recover Rs.4700 crore stuck with customers for a long time and hope to recovery at least 50 percent of that in FY18, he said.
Punj Lloyd Ltd is having an order book of Rs.18,000 Cr plus.
Punj Lloyd traditionally provides integrated design, engineering, procurement construction and project management services in the energy and infrastructure sector. However, it has diversified its interests into aviation, defence and upstream through subsidiaries and joint ventures.

4. RCom today closed at Rs.19.05 in the NSE. Fresh positions can only be taken above Rs.22.50.

5. I have updated the Premium Members on Rasoya Proteins Ltd (Re.0.15) and soon will be recommending a good dividend paying scrip. The interested persons can join the Paid Service at the earliest.

Also, I have a scrip which can double in the short term. Those who can invest 2-3 lakhs (or more) on this B -group, BSE/NSE listed company can ping me at suman2005s@rediffmail. com or sumanm2007s@gmail.com. The profit sharing will be 50:50, between you and my firm.

Important

1. You can take fresh positions in Punj Lloyd Ltd at Rs.19.65, for targets of Rs.23-25. The

company came out with better numbers in Q4FY17.  Infrastructure developer Punj Lloyd Ltd, set up in its present avatar in 1988, had grown quickly into a $2.6-billion business house within two decades. 

Photo: The Times of India

For the full financial year 2017, the company reported a net loss at Rs.850 crore, lower than the Rs.1513 crore net loss reported for financial year 2016. The Group’s order backlog stands at Rs.18,561 crores.  Punj Lloyd Ltd's losses narrowed to Rs.181.58 crore in the fourth quarter of FY17. The company had posted a loss of Rs.396.15 crore for the year-ago. The order backlog is the value of unexecuted orders on March 31, 2017 plus new orders received after that date. 
With the government approval for a new strategic partnership policy in the defence sector, domestic manufacturers like Punj Lloyd Ltd, are hopeful of exploring huge order book (~Rs.2 lakh crore over the next 10 years) opportunities
Also, despite debt, Punj Lloyd's reputation of completing projects with compete quality control has remained intact, according to Industry watchers and analysts. Though the going is tough, the analysts do expect a revival in Punj Lloyd’s fortunes in the not-too-distant future.

2. Those who have invested in Gammon India Ltd (Rs.9.30) can think of switching to Punj Lloyd Ltd, because the scrip is not going anywhere during the last few days.

3. Those of you who have not exited RCom Ltd (Rs.18.30) till now, should keep the last SL as Rs.17.50.I however, find no hope of the stock price revival till August - September or in the short term unless some form of miracle happens. So, best option is to exit RCom and look for greener pastures, elsewhere.

Important Announcement 

1. Do you want to invest in a high dividend paying stock, which can also give a capital gain

of around 30% plus in a year.? You just need to buy and hold and book occasional profits.

2. Do you want to get updates on one of my small cap recommended counters, which I know many of you are holding? This stock can given 100% return in a year.

Then either join my Paid Service or Trade/Invest through my recommended brokerage house with a minimum portfolio size of Rs.1 lakhs by next Thursday, i.e. by 15.06.2017.

So, Rush me a mail at: suman2005s@rediffmail.com/sumanm2007s@gmail.com.

Will the RBI lower rates in the year? 

The answer is definitely yes, though the timing may be uncertain. While inflation is low and trending downwards, the outlook on possible negatives that may be driving inflation forward will be critical in this context. Presently, if inflation remains benign – and there is no reason to think otherwise, a cut of 25 bps may be expected in the next half though it is more likely to be invoked in October when the busy season starts.

---- Madan Sabnavis, chief economist at CARE Ratings, The Business Standard, 7 June, 2017.

Important

Photo: Live Mint

1. Those who have entered Prajay Engineers Ltd can either exitbat Rs.10.70 with minimum loss or keep holding with a SL of Rs.10.40.

2. The Prime Minister, Narendra Modi is likely to take a review of the stalled infrastructure projects. So many infrastructure stocks like MBL Infrastructure Ltd (Rs.35.05), HCC Ltd (Rs.42.45) are doing well. You can buy Gammon India Ltd at Rs.9.50, T: Rs.15. The stock looks good above Rs.9.45. The 1st resistance comes at Rs.10.60, followed by Rs.11.70 and Rs.12.90. In 2013 creditors approved a Rs.13,500 crore CDR package for Gammon. Gammon India in March said it has got members' nod to invest or buy up to 20% stake in Gammon Infrastructure Projects from wholly-owned arm Gammon Power Ltd. The company said it also got member's nod to authorise Gammon Power Limited, a wholly owned subsidiary to divest/sell/dispose off further equity shares of Gammon Infrastructure Projects Limited. Gammon India also announced that the National Company Law Tribunal, Mumbai Bench ('NCLT') has at the hearing held on 30 March 2017, approved the Scheme of Arrangement between Gammon India ('GIL' or 'the Transferor Company') and Transrail Lighting ('TLL' or 'the Transferee Company') and their respective shareholders and creditors ('the Scheme') for transfer of the Company's T&D Undertaking.

3. There are too many uncertainties involved in the share of RCom Ltd (Rs.19.45). I would therefore suggest you to book loss and again enter either above Rs.22.50 or Rs.30.

Narendra Modi's Government is Testing the Patience of Indians ??!!

The GST: on Gold 3%, Real Estate 12%, Biscuits 18% and Telecom Services 18%.In the textiles category, silk and jute fibre have been exempted...... Silk saree's are worn by poor people only.......idiosyncrasies should have their limits.

Man-made apparel up to Rs.1,000 will attract a 5 per cent tax, lower than the existing 7 per cent. Those costing above Rs 1,000, will continue to attract 12 per cent. Man-made fibre and yarn will, however, attract a 18 per cent tax rate.

Where is 5% and where is 12% or 18%  -- Tughlaquian. It is like the 1st class fare of Mumbai's local trains are almost 4 times the 2nd class -- are the passengers if 1st class, super rich...? Are we having a pro-leftist government in India. .?

Some morons are busy with Cow and Triple Talaq, winking at serious economic issues; as GDP growth deteriorates and sector after sector gets destroyed. After construction/real estate, banking, telecom, Narendra Modi's government has put their black hand in pharmaceutical sector, putting a serious question mark on the sector's survival.

This Narendra Modi's government should quit now....the government wants to get votes by raising the bogey of extreme nationalism.

Adolf Hitler's experiments initially started in a docile manner, only to end up in mass massacres. The same is the case with Islamic Fundamentalism, which had its roots in Pakistan, Afghanistan and Iran, later spreading to Saudi Arabia, Egypt, Yemen, and now even to Indonesia, France, Uk and Bangladesh.

Narendra Modi's government is testing the patience of people...but when people gets angry, we know what happened in Libia, Romania, etc. Those who are still supporting Narendra Modi's government and his mediocre team, should re-think their strategies.

Investment in Stocks, TV Serials and Bollywood Feature Film/s

I am looking for deep pocketed ivestors who are ready to invest around Rs.30-50 lakhs in a

This is an  Bilingual Bollywood Feature
Film from our Production House. It is around
60% complete..

single share/stock based on the research reports presented to them. After they are ready with money they will be given the names of 3-4 stocks mentioning their future prospects. The investors can choose from the list and go for a target or time based investment. If they are uncomfortable to put such large sums of money in their trading account, they can do the same in my demat account and trade. The profit will be shared in the ratio of 50:50; the Period will be fixed for one year and it will be only on investment basis for one year (to get capital gains benefit). However, if the target is achieved earlier than 12 months, the position will be squared off...and the cycle repeated.

Also, on account of ensuring festival season (Eid, Ganesh Utsab, Durga Pooja, Navratri, Dussehera, Kali Pooja, Laxmi Pooja, Christmas, etc), I have decided to give 25% discount on the subscription of the paid service. This facility will be available till 31st December, 2017.

Moreover, if you lost money in some scrips like Reliance Communicatio Ltd, then don't worry. Start with fresh funds, with a target in mind, learning from the previous experiences. In share market there will be losses, those who backs out generally do not succeed. People like us, who are in the equity market for more than a couple of decades, have seen both ups and downs in our individual investments, but have always managed to come out as a winner over a period. Those who quits Midway, seeing losses, never makes money in share market. This is a place for tough guys, who don't buckle under extreme pressures. Always take the help of experts, for your stock market trading/investments. However, an expert can also, sometimes lose money due to judgemental errors, sudden government policy changes, predatory/wrong government policies and decisions, etc,  but over a period he always makes profit -- that is why he has managed to stay afloat here, under severe competition. That is why he is an EXPERT -- have faith on him, if you are somehow associated with him since sometime.

If anyone has the capacity to invest 1-1.5 crore in cash, then I can assure you fixed slots for TV Serials in reputed Channels like Star Plus, Zee, Colour, Sony, etc. I have a team of Bollywood directors, cameramen and specialized persons who can help you in your venture. Your work will be to invest, the production and publicity part will be taken care by my team. You can earn around Rs.2-3 lakh (net) per episode, which means Rs.8-15:lakhs per month, if the serial runs once a week. So, if the serial continues for 3 years, you have more than doubled your investments.

I am looking for financiers (or part financiers) who have the capacity to invest up to Rs.2 Cr, in a Bollywood flick, based on Mumbai's (Bombay's) underbelly. The storyline will be unique, hereto not seen on celluloid. The films like Satya, Vastav, Salam Bombay, etc were hits.

Send me a mail at: suman2005s@rediffmail.com/ sumanm2007s @gmail.com.

Prajay Engineers Syndicate Ltd: Buy

CMP: Rs.10.80

Introduction: Prajay is a Hyderabad based real estate company, which gives you more than just

real estate. Prajay has been transforming the Hyderabad landscape for the last two decades by developing landmark residential and commercial properties in the twin cities. The company has also made its mark in handling Hospitality projects. 

In its 20 years experience, Prajay has delivered over 75 projects and developed over 5 million square feet.
The company's broadly comes under two sections:
(I). Construction and Real Estate development -- 89.56% of total turnover.
(ii). Hospitality Business: Hotels and Resorts -- 10.44% of the total turnover.

Triggers: 

1. It has a land bank of almost 738 acres, as against a total debt of around Rs.200 Cr, book value of Rs.87.64 and market cap of only Rs.76.23 Cr.

2. Prajay has also extended its presence to Vishakhapatnam, developing over 35 projects with 18 million square feet under construction.

3. As of now the company is not launching new projects, and has decided to start work on Phase -Ii of some projects. Since, the real estate market in and around Hyderabad is picking up, it hopes to come up fresh projects soon.

4. At the end of last year, Prajay Engineers Syndicate Ltd announced its plans to develop 15,000 affordable homes by the year 2019 in Hyderabad and its surrounding locations where the company has developed a land bank. It is seeking to take advantage of the various benefits extended by the Union Budget, under section 80 IBA and Pradhan Mantri Awas Yojana, and facilitate development of two bedroom homes which are affordable and within reach of common man.

5. The total loss for FY17 decreased to Rs.23.96 Cr as against Rs.29.42 Cr in FY16. Moreover, if we look at the Q4FY17 results, then we will find that the total income increased to Rs.19.11 Cr as against Rs.11.55 Cr in Q3FY17 and Rs.14.63 Cr in Q4FY16. The total expenses increases to Rs.24.49 Cr in Q4FY17 primarily on account of the escalating cost of land, plots and constructed properties; though finance cost also shot up to Rs.5.49 Cr as against Rs.3.74 Cr in Q3FY17. The net loss of the company for Q4FY17 came flat at Rs.5.55 Cr as against Rs.5.31 Cr in Q3FY17 and Rs.5.64 Cr in Q4FY17.

6. A homebuyer henceforth will have to pay 12% GST to purchase an under construction house. If we look at the current scenario, real estate sector was heavily taxed, therefore 12% single tax structure is definitely a welcome move.

Moreover, the continuance of low interest regimes in India, is likely to see the demand pick in the real estate sector, in the coming months; as festivals pick up steam from July - August. Besides, as the Indian economy picks up steam, the hospitality sector, will also show some spikes, in the near future.

Conclusion: Looking at the above data, it is concluded that the scrip remains undervalued. The investors can buy the stock of Prajay Engineers Syndicate Ltd at the CMP of Rs.10.80 (BSE) for short term target of Rs.15.60.

Market Mantra 

1. Buy Prajay Engineers Syndicate Ltd at Rs.11.20, T: Rs.15.50, SL: Rs.9. Prajay is a

Richa Gangopadhyay at
Prajay Megapolis Lucky Draw

Hyderabad based real estate company, gives you more than just real estate. Prajay has been transforming the Hyderabad landscape for the last two decades by developing landmark residential and commercial properties in the twin cities. The company has also made its mark in handling Hospitality projects. With Prajay, your search for perfection and value for money is rightly met.

2. Exit from RCom Ltd (Rs.20.20), as the company is in severe cash crunch and has no money to pay for interest; forget the capital.

3. Those who are holding Tata Steel since Rs.220, should book complete profits at Rs.520...and look for other steel counters which looks undervalued. One can try SAIL at Rs.57.40, T: Rs.72, SL: Rs 52.60.

Winning Strokes: Think Different

Idea Cellular Ltd yesterday moved to Rs.93, before closing at Rs.

92.35. The scrip if you remembere was recommended at around Rs.77-78, with a strong buy recommendation. The targets for the stock remains Rs.125-127, as the government has formed a panel to look into the owes if the telecom sector.

Reliance Communications Ltd rose to Rs.33.20 before closing st Rs.32.45, down 1.52%. However, the fall has been with low volumes especially on a day like Friday, indicating that selling is probably coming to an end. I am hopeful of targets of Rs.41-42, in the coming few weeks. RCOM is likely to be taken over by RJio, in the near future; till then any positive move for RJio is positive for RCom as it gets royalty income from the latter (infrastructure, spectrum Sharing, etc).

Yesterday, UCO Bank (Rs.41.70) moved to Rs.42.20 before closing flat, while Dena Bank (Rs.40.15) nosedived to Rs.40, intraday before closing near the days low. If you remember profit booking was suggested in both the counters, as I felt the bank (share) rally is over.

Simplex Projects (Rs.34.65) yesterday, moved to Rs.35.80 in the NSE with very low volumes. The stock is not responding to the triggers and is struggling to close above Rs.37. I would therefore, suggest the traders to exit on rallies. Long term investors however can hold with a SL at Rs.31.

Winning Strokes: Think Different

Today was the day for telecom stocks as most of them surging more than 2% intraday. At one time my recommended Bharti Airtel was up more than 9%, as the stock closed the at Rs.372.75 up more than 7%. The RCom closed at Rs.33.10, up 1.85% (Intra day high of Rs.33.85). Now, as RJio continues its paid packages and government takes initiative to revive the sector, the investors can look at this sector once again for some decent future gains.

Dena Bank Ltd which was recommended at around Rs.37, last months today made a new 52-week high of Rs.50 in the BSE. Another of my recommended counter in the PSU banking space UCO Bank Ltd closed at Rs.41.75 in the BSE after making an intra day high of Rs.43-plus. The investors are suggested to book profits in both the counters.

Shilpi Cable Technologies Ltd (Rs.74.65) continues to hit the lower circuits, after it broke a major support at Rs.117. I am expecting the share to go below Rs.70. Therefore, keep away from this stock, at the present moment.

Buy the shares of Simplex Projects Ltd (Rs.34.65) at around Rs.34.34.50, for targets of Rs.51-52. The stocknis on an uptrend and its sister company is doing Metro Rail project bin Bombay.

Buy: Telecom Stocks

An inter-ministerial committee being set up by the government to look into the financial woes of the telecom sector would have about three months to hand over its views and solutions to the government. 

According to people in the know, the panel is likely to have six to eight members, including two from the telecom department and one each from the departments of revenue and economic affairs. 

The panel would look into issues related to the sector’s financial health, which has taken a beating due to cut throat competition triggered by the entry of RJio reports the ET.

In another significant positive development: India's telecom subscriber base, mobile and landline combined, touched the 1.18 billion mark at the end of February 2017, growing 1.17 per cent over the previous month, according to regulator Trai.

Reliance Communication Ltd will now move towards Rs.40-41, Bharti Airtel (Rs.351.25) towards Rs.370-380 and Idea Cellular Ltd (Rs.87.55) towards Rs.127-130. So, the best two stocks to invest at this moment are: RCom (Rs.32.45) and Idea Cellular Ltd.

Today's Calls

1. Buy Tata Motors Ltd at Rs.442, T: Rs.471-475, SL: Rs.437.  There is some reshuffle in the management of Tata Motors.

2. Buy in Bulk the shares of Reliance Communications Ltd (Rs.34.15) as it could get merged with RJio and become a formidable player in the telecom sector. The amount of properties Reliance Industries have in Navi Mumbai (New Bombay) is of astronomical proportions. Upon merger with RIL group, the RCOM will get sufficient financial clout to take on the competition; as it will then be a part of the RJio. Therefore, buy in Bulk the shares of RCom.

3. Those who are holding the shares of Reliance Power (Rs.50.45) are suggested to keep holding as Anil Ambani Ground shares is likely to move up now. We are already witnessing good moves in Reliance Capital Ltd (Rs.612) and Reliance Infrastructure Ltd (Rs.582).

3. Buy the shares of Idea Cellular at Rs.84.80, T: Rs.91 - 101. There is nonneed to keep S L as after RJio's Paid service most of the telecom stocks are likely to zoom. Moreover, Post-merger, leverage (of the merged entity) is expected to fall gradually, while the quality of spectrum assets will rise. Even after they surrender excess spectrum, they will hold more spectrum than both Airtel and Jio. There are a host of other synergy benefits, and it turns out that a large proportion of shareholder value hinges on extracting these benefits. It is useless to spend time analysing the standalone entity as the merger is now a happening case.