Market may rise on positive global cues

7 November, 2017: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 40 points at the opening bell on positive global cues.

Overseas, most Asian shares were trading higher. US stocks rose moderately Monday, helping the three main stock benchmarks to close at all-time highs. Healthy corporate earnings and merger talks between chip makers Broadcom and Qualcomm kept stocks in positive territory despite unsettling political developments in Saudi Arabia. The S&P 500 index rose 0.13%, the Dow Jones Industrial Average rose 0.04% and the Nasdaq Composite Index advanced 0.33%.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 576.27 crore yesterday, 6 November 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 263.84 crore yesterday, 6 November 2017, as per provisional data.

On macro front, the government announced on Monday, 6 November 2017, a multi-agency investigation headed by the Central Board of Direct Taxes (CBDT) chairman, after media reports leaked financial documents called the Paradise papers that show alleged offshore dealings of 714 Indian individuals and entities. The government said the multi-agency group would also have representatives from the Enforcement Directorate, the Reserve Bank of India and the Financial Intelligence Unit.

A collective of international journalists obtained the Paradise Papers from Bermuda-based offshore law firm Appleby and Singapore's business consulting company Asiaciti. The Finance Ministry said that the investigation units of the Income Tax Department have been alerted to take note of revelations for immediate appropriate action.

Among corporate news, Just Dial's net profit rose 26.47% to Rs 37.46 crore on 3.97% rise in total income to Rs 214.52 crore in Q2 September 2017 over Q2 September 2016. The announcement was made after market hours yesterday, 6 November 2017.

Bank of Maharashtra reviewed its marginal cost of funds based lending rates (MCLR) with effect from 7 November 2017. The bank's MCLR for overnight loans is 8.1%, the rate for one month is 8.15% and for three months is 8.2%. The MCLR for 6-month loans is 8.55% and for one-year loans the rate is 8.65%, the bank said. The base rate was kept unchanged at 9.6%. The announcement was made after market hours yesterday, 6 November 2017.

A divergent trend was witnessed yesterday, 6 November 2017, as the barometer index, the S&P BSE Sensex, settled with small gains while the Nifty 50 index finished a tad lower. The barometer index, the S&P BSE Sensex, rose 45.63 points or 0.14% to settle at 33,731.19. The Nifty 50 index fell 0.70 points or 0.01% to settle at 10,451.80. The Sensex hit record high on intraday as well as closing basis. Global cues were mixed.

Powered by Capital Market - Live News

Winnning Stokes: Think Different

Jai Balaji Industries Ltd today went up by 4.69% in the NSE with good volumes on better prospects of Gray Iron Pipe sector. Japanese trading house Mitsubishi Corp expects coking coal p9rices to fall towards $150 a tonne in the October to March half as Chinese steel mills are set to reduce output over the winter period. Meanwhile, the Steel mills across China, particularly in the country’s biggest steel producing city of Tangshan, were expected to begin cutting production to meet air pollution reduction targets. However, Tangshan has ordered different levels of capacity cuts leading to speculation that the output may not be curtailed as much as expected earlier. After facing headwinds that slowed consumption in recent years, world steel demand growth is beginning to face a cyclical upturn. Consumption demand is expected to pick up on the back of the momentum in global economic growth.
Based on the demand conditions so far this year, the World Steel Association, in its short-range outlook, has forecast that global steel demand will reach 1,622 million tonnes (mt) in 2017 and will improve to 1,648 mt in 2018. In other words, the industry has by and large been able to ride out this year’s political risks, including Fed rate hikes, European elections, rising crude oil prices and Trump-induced market volatility. Admittedly, China is the mover and shaker of the world steel market by virtue of being the largest producer and consumer of the industrial metal. The positive correlation between global economic growth and steel consumption is well-recognised. From less than 3 per cent in 2016, there has been a modest pick-up in global growth to 3.3 per cent this year and a further increase to 3.6 per cent in 2018 is seen. For the world market, at present, risks factors include geopolitical tension (friction between the US and North Korea), protectionist tendencies and China’s debt problem. I am expecting the share price to touch Rs.21-22 in the short term.

Shilpi Cable Technologies Ltd (Rs.18.10) is being hammered by operators, after the company's share got shifted to the BZ category. However, according to my close sources, there is as such no problem in the company - it is functioning in a normal way. I will speak.4 with a highly placed source tomorrow to get full details of the situation. Meanwhile, the company is shifting its Hosur plant to Bhiwadi, Rajasthan for better management and control -- the share is likely to bounce back, after testing the earlier low.

Aban Offshore Ltd (Rs.220) which was recommended around Rs.178 last month, today touched Rs.224.40 on higher crude oil prices. Chennai-based Aban Offshore, the country’s largest offshore drilling service provider to oil companies having a debt of around Rs.14,000 crore on its books, is trying to come out of choppy waters by working closely with bankers to moderate debt cost on the one hand and extend debt repayment tenure on the other. Meanwhile, there were media reports that the company had entered into a contract with Brunei Shell Petroleum Company Sdn Bhd. The objective of the contract is deployment of a jack-up rig Deep Driller 5 (DD5) offshore Brunei Darussalam. The contract is for a firm period of five years, followed by three optional periods of one year each. The deployment is likely to commence during the last quarter of calendar year 2017 or from this quarter. Currently, the 14-day ADX for Aban Offshore Limited (ABAN.NS) is sitting above 50. The 14-day RSI is currently at 73.83, the 7-day stands at 84.61, and the 3-day is sitting at 95.51. Aban Offshore Limited (ABAN.NS) presently has a 14-day Commodity Channel Index (CCI) of 238.13, which means the stock is in the overbought side of the territory. The traders who entered around Rs.178-179 can book some profits and hold the rest with a SL of Rs.212.

HDIL which was recommended around Rs.52,  today  touched Rs.62.45 intra-day before closing at Rs.61.50. A Meeting of Board of Directors of Housing Development & Infrastructure Ltd will be held on Tuesday, November 14, 2017, to consider and approve Unaudited Financial Results of the Company for the Quarter and six-months ended September 30, 2017 for the Financial Year 2016-17 ('Unaudited Financial Results'); and to consider and approve Issue of Warrants on Preferential Basis to Promoter of the Company. Meanwhile, the Money Flow Indicator for Housing Development and Infrastructure Limited has touched above 60.  The traders are suggested to hold the scrip with a SL of Rs.57 for the next set of targets of Rs.69--71.

November Effect: Buy beaten - down Micro-caps

Advances in Behavioural Finance over the last several decades appeared to have shifted the paradigm away from the theory of  Efficient Market Hypothesis as proposed by Fama (1970).

According to this hypothesis, securities are priced efficiently hence, they fully reflect all the relevant information. This implies that, the future path of asset prices in stock markets around the world is merely a series of random numbers, i.e. prices follow the random walk hypothesis. This normative statement came increasingly under fire with the discovery of a series of persistent anomalies that seem to defy rational, logical thinking. 

Anomalies has always been challenge to the dominating efficient market theory which suggest that nobody can outperform in market as the market follows a random walk and is unpredictable. Anomalies, on the other hand, are systematic patterns recognized in the movements of the asset prices, which can be exploited by smart investors to earn profit. Existence of anomalies is an indicator of either market inefficiency or inadequacies in the underlying asset-pricing model. The theory of random walk hypothesis was first postulated by Bachelier (1900).

After all, we are human, and we are not always rational in the way equilibrium models would like us to be…. Financial markets are a real game. They are the arena of fear and greed. Our apprehensions and aspirations are acted out every day in the marketplace…. So, perhaps prices are not always rational and efficiency may be a textbook hoax. (Wood 1995, p. 1).

Numerous researchers have challenged the EMH in the US securities market as well as in many international securities market. There are a large number of anomalies documented by researchers as size effect, calendar effect, low beta firm effect, neglected firm effect, the value effect, and momentum effect etc. However, this essay mainly takes into the account the calendar anomalies, experienced by Indian stock markets.

In the context of financial markets, calendar effects, that contradict the Efficient Market Hypothesis (EMH), have been documented over several years. These calendar effects are trends seen in stock returns, where the returns tend to rise or fall on a particular day or month as compared to the mean. 

They are called anomalies because they cannot be explained by traditional asset pricing models and they violate the weak-form of market efficiency (i.e. asset prices fully reflect all past information). Examples of such patterns include the Month-of-the-year effect, Day-of-the-week effect, Intra-month effect, Turn-of-the-month effect, Holiday effect, Halloween effect, and Daylight savings effect.

 As the name suggests, the month-of-the-year effect is a seasonal phenomenon where exchange traded equities tend to produce abnormal returns during particular months of the year. This effect is sometimes identified as the 'January effect' since most developed countries tend to produce abnormal returns in January. January effect was first introduced by Watchel (1942) and further developed by Rozeff and Kinney (1976). The existence of  a January Effect means that returns for the month of January are statistically significantly greater than those during the remaining months of the year.

The question of efficiency of the Indian stock markets is not a novel undertaking. Sharma and Kennedy (1977) found that the Indian markets obeyed the theory of random walk and concluded that markets were efficient.

Kulkarni (1978) rejected the random walk hypothesis and confirmed the presence of seasonality in monthly prices.

Ignatius (1998) gave evidence for the December Effect. Pandey (2002)confirmed a tax-loss-selling hypothesis in the Indian market explaining the presence of abnormal returns in April only to be contradicted later by various other studies. Chakrabathi and Sen (2007)found evidence of the November Effect at the market level.

The above reflect a somewhat controversial picture of the Indian stock market over the years, maybe

due to statistical misgivings. Or perhaps we could presume the disappearance of these anomalies over

time as in Schwert (2002), on the basis that rational traders exploit the documented anomalous behaviour, hence leading to more efficient markets. In other words, the anomalies are arbitraged away. 

The December Effect was first reported by Ignatius (1998) while studying the Indian market during the period 1979-1990, albeit in a different fashion. Ignatius found that December generated the highest mean returns, and that April and June generated high returns in the Indian stock index.

There are a number of reasons as to why December produces abnormal returns compared to any other

month in the Indian market. A number of festivals fall in the second quarter namely, 'Ganesh Chaturthi', 'Durga Pooja', 'Dussera', 'Kali Pooja', 'Laxmi Pooja' and 'Diwali'. However, of all the festivals, Diwali is the one festival that is celebrated across the country in a significant way. Though the Hindu calendar determines when Diwali is celebrated each year, it usually falls in November (or sometimes at the end of October). The festival is considered to bring with it good luck and is therefore, 'auspicious.' Most people buy new homes, new cars and expensive durables during this period. Also, the festival calls for the old tradition of distributing gifts. Even the poorest people in the country save their meagre earnings all year to celebrate this festival.

Another point to mention here is that all jobs in India pay a 'bonus' to employees in the months of November or December depending on the company. These jobs include government jobs, company jobs, and even domestic or labour intensive jobs. This means that consumers have extra cash in hand during this period.

Due to high cash in hand and the festive season, buying by consumers shoots up in a significant way. As the selling of consumer durables increases, it gives impetus to the industry production after clearing out the backlogs from the previous period. Thus, the entire economy is reinvigorated. By December the markets look interesting again, and investors are bullish about the next period returns, making the stock market the right place to invest in during December.

Another possible interpretation for the December Effect in the Indian market could be found in the optimism of the Indian stock market in the recent years. The significant growth rate in the country has probably increased optimism in anticipation of the Government's announcement of its budget with the expectation of good news that will further accelerate the country's economy. Therefore, the investors tend to indulge themselves in the pre-budget rally. Information leakages about the budget begin in the months of December and January which tend to fuel trading of a speculative nature.

Lastly, the growth of foreign mutual funds in the country also supports the December effect. There has been a significant growth in the foreign mutual funds in India during the last few decades. Foreign Fund Managers are paid a performance bonus before they leave for their Christmas holidays that is evaluated on the basis of their portfolios. Therefore, they tend to aggressively trade in December, 'window dressing' their portfolios before the end of the year. This reduces the chances of redemption and also, makes their portfolios look profitable, helping fund managers cash in on a good performance bonus. 

In case of November-December Effect the mean returns for November and December are significantly greater than those of the other ten months. There is also March-to-May effect in which mean returns for the months March to May are significantly less than those during the other nine months. These are two distinct effects, which are independent of each other.

Published studies  that have examined  calendar  effects in the  Indian  stock market appear to be limited.  Kaur (2004) reports  that  few studies  have examined the  day-of-the-week effect in the Indian stock market, and further notes the absence of studies that examine monthly seasonality in the Indian stock market.  Kaur utilized two Indian stock indexes, the Bombay Stock Exchange (BSE) 30 index and the National Stock Exchange (NSE) S&P CNX Nifty stock index, to examine the day-of-the-week effect and the monthly effect.

Yakob,  Beal  and  Delpachitra  (2005)  examined  seasonal  effects  in  ten  Asian  Pacific  stock  markets, including the Indian stock market, for the period January 2000 to March 2005.  They state that this is a period of stability and is therefore ideal for examining seasonality as it was not influenced by the Asian financial crisis of the late nineties.

Yakob, et al., concluded that the Indian stock market exhibited a month-of-the-year effect  in that statistically significant  negative  returns  were  found  in March and  April  whereas  statistically significant positive returns  were  found  in  May,  November  and  December. Of  these  five  statistically  significant  monthly  returns, November generated the highest positive returns whereas April generated the lowest negative return.

Kaur did not find a January Effect in the Indian stock market, but  did find that March and September  generated substantially lower returns, whereas February and December generated substantial positive returns.  

Calendar effect thus connotes the changes in security prices in stock market following certain trends based on seasonal effects. Such trends or consistent patterns occur at a regular interval or at a specific time in a calendar year. Presence of such anomalies in any stock market is the biggest threat to the concept of market efficiency as these anomalies may enable stock market participants beat the market by observing these patterns. Existence of these anomalies in Bombay Stock Exchange National Stock Exchange is against the principle of market efficiency as it may offer abnormal economic rewards to the investors tracking these anomalies.

I myself have observed a phenomenal rally in the small and micro-cap counters during the mid-November to end December period. Therefore, the investors and traders are suggested to accumulate the stocks of this space, from next week.

Bibliography: 

i) The December Phenomenon: Month-of-year-effect by Anokhi Parikh.

ii) Calendar Effects  In The Indian Stock Market  by Jayen B. Patel, (Email: jpatel@adelphi.edu), Adelphi University.
iii) The thesis entitled “Calendar Anomalies in Indian Stock Market” by Neha Bankoti.

iv) Stock Market Anomalies: A Survey of Calendar Effect in BSE-Sensex by Abhijeet Chandra, IIT Kharagpur, West Bengal.

WINNING STROKES: THINK DIFFERENT

Today, one of my recommended counters A2Z Infrastructure Ltd at around Rs.37-38, to the Premium Group members, touched Rs.43.30, during the intra-day; before closing at Rs.41.95. The name of the stock was not disclosed in this blog, but was mentioned, as a scrip of price Rs.37-38.

Unitech Ltd today touched Rs.6.85, before closing at Rs.6.75.  The stock will touch Rs.8-9, this time, unless the mid and small cap rally fizzles out. Meanwhile DLF Ltd is doing excellently well having crossed Rs.200, with full power and is now trading at around Rs.207.85. HDIL today touched Rs.61.2, before closing at Rs.58.85. I am looking at targets of Rs.71-72, for the HDIL and Rs.217 for DLF Ltd.

Gammon India Ltd today closed at Rs.7.70, up 4.05%. Slowly the steam will pick up in Gammon Infrastructure Ltd (Rs.3.20) too and both are likely to cross Rs.10 in style.
There were earlier media inputs that Gammon Infrastructure India had worked on laying a four-lane road for Phase III of the IT Park in Panchkula.
The Mutual Funds hold 12.45% while the FPIs hold 5.39% of the shares of the company respectively. Among the Mutual Funds HDFC Trustee Company Limited - HDFC Equity Fund holds 8.82%, while ICICI Prudential Infrastrucutre holds 2.61%.

Among the FPIs, HSBC Global Investment Funds - Indian Equity holds 1.51% while Eastspring Investments India Infrastructure Equity Open Limited holds 1.17% of the shares of the company. It is your mere luck that you are getting the shares of both the construction companies at below Rs.10. You should accumulate the scrip of Gammon Infrastructure Ltd, without fail on all declines.

Kopran Ltd, which was recommended as a Free Call in this blog some days back, today touched Rs.74.40, before closing at Rs.72.45. You can keep holding with the targets of Rs.77-81, which I feel is likely to be achieved by next week. I am expecting the pharma rally to continue for some more time.

I am giving another Fee Call, for regular blog readers: Buy Mandhana Industries Ltd at Rs.7.7 for targets of Rs.11-13. Manish Mandhana, a third-generation entrepreneur, is perhaps best known for his leadership of the Being Human clothing brand, which he launched in 2012 in association with Bollywood icon Salman Khan and his charity ‘Being Human – The Salman Khan Foundation’. In just two years since its launch, Being Human — a brand where charity and cutting edge fashion have a symbiotic relationship — has already seen successful international launches in France, Spain, Belgium, UAE, Egypt, Bahrain, Saudi Arabia, Oman, Kuwait, Jordan, Lebanon, Qatar, Nepal and India. Its European distribution is set up in Bordeaux, France and services over 120 selling points across Europe.
Mandhana Industries Ltd has the global license to design, market and distribute the Being Human clothing brand. In India, the brand retails across 200 selling points comprising exclusive brand outlets, shop-in-shops and e-commerce verticals.

I will be recommending a Super Premium Scrip on Monday. Those who want to get the name of the scrip either by subscribing to the service or by joining my associated brokerage house,  can send in their requests at: suman2005s@rediffmail.com or sumanm2007s@gmail.com. Please avoid sending me time-pass mails...

THREE SCRIPS: MY OPINION

I had recommended these three stocks in the last 7 - 8 years, but subsequently I have suggested either, not  to add positions or exit on rallies or trim down  your holdings in an Bull run. I still maintain this view. The stocks are:

1. Reliance Communication Ltd (Rs.17.10): This Anil Ambani Group company has been shattered due to RJio's freebies and is struggling hard to keep going. It has messed up with expected tie-ups and it debt position is precarious. Both the Ambani brother run an opaque business model and it is very difficult to understand what is going inside the company, like RJio's initial tariff schemes.
In such a condition, the best option would be to sell the share of RCom Ltd on rallies and exit the counter; till some  positive news hits the stands. Yesterday, the stock gave a pop at Rs.18.30, before closing at Rs.17.10, up 8.57%. The stock can go upto Rs.21, but try to sell slowly through its northward journey and shift to some companies with a good story to tell.

2. Rasoya Proteins Ltd (Re.0.15): This scrip has given headache to all those who believed in the  company, and put in their hard earned cash; only to be bombarded by two non-guided missiles: 

(i) Spiraling debt of few hundred crores, with no solution at hand; though the management continued to rant about their so-called efforts to reduce the same. The company's main plant from which it used to get major revenues is still closed and its office is left with very little employees to carry forward its to day activities. 

(ii) A GDR mess, which got some of the directors, to be booked by the authorities on allegations of a scam. Though the GDR issue is now a history, but it is better for NON RISK TAKING INDIVIDUALS to exit such scrips, lock, stock and barrel. 

3. Alchemist Ltd (Rs.12.22): The company launched the IPO with a big bang, but later it started to do all the tricks, which are the domains of non-transparent companies like SEL Manufacturing Ltd (Rs.2.70). Theses kinds of stocks normally gives a sudden pop, during the Bull phase, to rope in floating investors; only to dump them at the end. Like SEL Manufacturing Ltd which hit the 20% UC yesterday, this company has been riding the bull run off late, through stories planted by operators.

I would suggest you to get down from the bull - express, near your buy price; so that you are saved from any major catastrophe at the end.

 WINNING STROKES: THINK DIFFERENT

Gammon Infrastructure Ltd closed at Rs.3.35, up 1.52%, after yesterday whirlwind rally in the counter. The government on Tuesday, 24 October 2017, approved to develop approximately 83,677 km of roads at an investment of Rs.6.92 lakh crore by 2022. The highway construction programme is aimed at pushing economic activity and generating at least 14.20 crore man-days across the country over the next five years. Most of the infrastructure stocks are expected to do well in the short to medium term.

HDIL today touched Rs.59.95, before closing at Rs.59.10. The stock if you remember was recommended around Rs.52. The housing stocks are likely to move up in the coming days, as some green shoots are seen in Real Estate sector. There were media reports that investment in India's six major cities doubled to $2.87 billion in the year ended June 2017 as Mumbai attracted maximum capital and was ranked 81st globally, according to Cushman & Wakefield report on the real estate sector.

Unitech Ltd, another major real estate player, today touched Rs.7, before closing at Rs.6.70. The country's current economic position and political stability have been instrumental in creating better investment environment, the Cushman & Wakefield report said, adding that the positive changes in the legislative environment has ensured that the invested capital is safeguarded.

Simplex Projects Ltd recommended several times around Rs.37-38, hit another buyer freeze today at Rs.63.60. The stock has touched all my recommended price points and is perhaps heading toward Rs.71-72 mark.

I shall be recommending another Super Premium Scrip on next Monday. Those who want to get the name on Monday Morning, can either enroll in my Premium Service or can join my associated brokerage house with a minimum portfolio size of Rs.1 lakhs by this Saturday.

WINNING STROKES: THINK DIFFERENT

Today's Call to the Premium Members, Gammon Infrastructure Projects Ltd at around Rs.2.95, shot up like a rocket and closed at Rs.3.34 in the BSE, up more than 15%; after touching an intra-day high of Rs.3.40. What is the target for the scrip?

The Free Call, Kopran Ltd, moved to Rs.71.30 before closing at Rs.69.55 or a tad higher than the recommended price of Rs.69.35. Accumulate the scrip on declines, with required stop losses in mind.

Unitech Ltd today moved to Rs.6.49, in the BSE before closing at Rs.6.30. The Supreme Court today said that it will consider granting bail to Unitech Ltd Managing Director Sanjay Chandra after the embattled real estate firm deposits Rs.750 crore by December end. So, from Rs.1000, the Supreme Court judges has trimmed down the deposits to Rs.750 crore,what is the next downward target? But I am not able to comprehend what the judges wants to prove to the world, by keeping Mr.Chandra inside the walls, when he is the crucial for the health of the company. I find some Supreme Court judgements during the BJP rule, really hilarious and ambiguous. 

Aban Offshore Ltd touched Rs.208.60, before closing at Rs.203.10. The investors who have bought around Rs.178, should book at least 60% of the profits and hold the rest with a SL of Rs.96.

Shilpi Cable Technologies Ltd  hit the upper circuit at Rs.23.60 in the opening trade before closing at Rs.22.90. Shilpi Cable Technologies, a separate wing of the three-decade-old Shilpi Group, was founded in 2006. Starting with a project to manufacture RF cables, Shilpi Cables has become a specialist across varieties of cables widely used in telecom, automotive and energy segments.

Market Pulse

Key indices settled on a flat but divergent note, after witnessing intraday volatility on last Friday. The Sensex closed with a minuscle gains of 10.09 points or 0.03% to settle at 33,157.22, while the Nifty settled with a small loss of 20.75 points or 0.2% to close at 10,323.05; inspite of support coming from firm global cues. Moreover, the Sensex settled at record closing high, gaining for the fifth straight day, while the Nifty snapped four-day winning streak.

The S&P BSE Mid-Cap index rose 0.28%. The S&P BSE Small-Cap index gained 0.27% - both the indices outperforming the Sensex. The breadth of the market, was positive. On the BSE, 1,389 shares rose and 1,313 shares declined. A total of 150 shares remained unchanged.

On last Friday, the Pharma stocks gained. Sun Pharmaceutical Industries (up 3.65%), Cadila Healthcare (up 1.71%), Glenmark Pharmaceuticals (up 1.78%), Aurobindo Pharma (up 1.46%), Dr Reddy's Laboratories (up 2.12%), Alkem Laboratories (up 0.23%) and Lupin (up 0.38%) advanced. In this context, I am recommending a microcap from the pharmaceutical space, specially for the regular blog readers. The name of this share has not been disclosed to anyone before; so you can be rest assured that, this blog readers are getting a maiden scrip name, Free of Charge.

Buy Kopran Ltd at Rs.69.25, for short term targets of Rs.77-78. The 52-week high for the scrip in the BSE is Rs.102.50.  

Kopran is an integrated Pharmaceutical Company from the Parijat Enterprises Ltd group. It manufactures a diversified range of products starting from Active Pharmaceutical Ingredients(APIs) to Finished Dosage Forms. It is focused on improvement in technology and is launching new products, duly integrated with their sophisticated Research & Development department -  it has a good research portfolio. It is among the top manufacturers, who influence the Global Nsaids Market. The Global Anti-inflammatory Drugs Market is set to grow exponentially, following rapid Industrialization/Urbanization. The market cap of the company is Rs.299.52 Cr against FY17 revenues of Rs.190.39 Cr. The P/E of Kopran Ltd is 12.61 against the industry P/E of 29.04 - this give a lot of scope for appreciation. However, pleases keep a SL of Rs.65, for any short term trade or in case the buy does not work.

The stock of RCom Ltd (Rs.15.90) has been going down and down, with no hope of improvement in the company's fundamentals in the short term. I had already given a sell call on the scrip on last  week and I still maintain the same. Exit the scrip on rise.

It is good going for the share of Shilpi Cable Technologies Ltd (Rs.22.60), as the stock has again started hitting the UCs I am betting on a target of Rs.26-27 in the short term.

Foreign portfolio investors (FPIs) sold shares worth Rs.640.95 crore on Friday, 27 October 2017, while the domestic institutional investors (DIIs) bought shares worth Rs.56.57 crore on Friday, 27 October 2017, as per provisional data.

Among corporate news, ICICI Bank's net profit fell 33.65% to Rs.2058.19 crore on 17.55% decline in total income to Rs.18763.29 crore in Q2F18 over Q2 September 2016.  The bank's gross non-performing assets (NPAs) net of write-off stood at a whooping Rs.44488.54 crore as on 30 September 2017, as against Rs.43147.64 crore as on 30 June 2017 and Rs.32547.50 crore as on 30 September 2016.
The ratio of gross non-performing customer assets (net of write-off) to gross customer assets stood at 7.87% as on 30 September 2017 as against 7.99% as on 30 June 2017 and 6.12% as on 30 September 2016. The ratio of net non-performing customer assets to net customer assets stood at 4.43% as on 30 September 2017 as against 4.86% as on 30 June 2017 and 3.21% as on 30 September 2016. The bank's provisions and contingencies declined 36.42% to Rs 4502.93 crore in Q2 September 2017 over Q2 September 2016.
Chanda Kochhar, the CEO & MD of ICICI Bank, has doomed this largest private sector bank of India, with worst type of financial mismanagement -- the shareholders wealth going down the drains of Dalal Street. I was apprehensive about her appointment from the day one; inspite of the media were going 'ga - ga' about her 'so-called capabilities'. I have often observed that the global media tries to 'bite more than it can chew', when any woman joins some important positions...A lacuna of sorts?
I had written about the mismanagement of the bank (ICICI Bank) long back, when it took huge delays in getting the cheque book and then not receiving it at all in my home address -- the bank officials asking me to collect from their office.....following the write up in this blog, the ICICI Bank sent me a mail, threatening legal action; but later apologized. I have closed my ICICI Bank account long back and would not  opt for the same in the short term, after observing such financial mess in the bank's book.
After such repeated huge write - offs, I would therefore suggest you to go for any Government owned bank to keep your hard earned cash, instead of staying put in battered Private Sector Banks like ICICI Bank. No one knows what is in store for future (for such private banks); though the government has decided to capitalize some PSBs.
Do you remember, the Global Trust Bank (GTB) episode? The shareholders got almost nothing at the end of the day; though Goldman Sachs owned 4%, the International Finance Corporation owned 5% and Oriental Bank of Commerce acquiring GTB on 14 August 2004.

The market may open higher today and fresh highs could be possible as long as Nifty  trades above 10,200. However, the traders are suggested to SELL on the opening bell, followed by cover - up during the market hours. The compulsory traders are also suggested to keep their positions light and avoid taking leveraged positions - instead of the indices, it would be better if they focus on Individual stocks.  I will be recommending another small cap for the Premium Group members -- watch out for the name in this blog, ether in the later hours of the day or tomorrow.

--- With inputs from Capital Market - Live News.

Market Pulse

Shilpi Cable Technologies Ltd hit another buyer freeze today at Rs.22.50. I have in my earlier post spot of targets of Rs.27-31, for the scrip.

As expected and as mentioned in my earlier posts, Aban Offshore Ltd today crossed Rs.200 and is now trading at around Rs.203.10; after touching a high of Rs.206.90. What is the target for the scrip?

J P Associated is trading at around Rs.18.50, now. The stock never crossed Rs.22, after a sell call was suggested at around Rs.19-20.

Madhucon Projects Ltd, owned by a politician is now trading at around Rs.35.20, after touching a high of Rs.35.95. The stock is up 6.18% today. I have recommended the scrip several times during the last few weeks. If you have bought around Rs.26--27, please book at least 50% of profits on your buy price.

Simplex Projects Ltd hit the buyer freeze today at Rs.55.10. The stock was recommended several times in the last few months. This is the 2nd time the stock crossed Rs.53 mark. Many Construction stocks are doing well, triggered by the government approving mega highway plan to develop about 83,000 kilometers of roads at an investment of Rs.7 lakh crore in next 5 years earlier this week.

HDIL today touched Rs.58.15 and is now trading at Rs.56.95. The stock is finding very difficulty to cross the resistance zone of Rs.57-57.5. The risk averse traders can exit the counter near Rs.57, with small profits. However, those who are long term investors, can hold the scrip with a SL of Rs.54.

Jai Balaji Industries Ltd today hit the buyer freeze at Rs.17.005 at the night, reaching my 1st target. Those who have entered around Rs.11.70-12, ranges can book some profits in the counter.

Buy Call from my Associated Brokerage House, BMA Wealth Creators Ltd:  Buy (T+2) PTC at around Rs.123.70, SL:  Rs.120; T - Rs.130.

Unitech Ltd today touched Rs.6.50 and is now trading at Rs.6.40, up 5.79%. You can look for targets above Rs.7, in the coming days. Accumulate the scrip on all dips. 

Market Pulse

Shilpi Cable Technologies Ltd hits another buyer freeze at Rs.21.45. Look for targets of Rs.29-31, if Rs.24 is taken out on the upside.

Exit Reliance Communications Ltd (Rs.15.85) on the rise, as it seems no positive trigger is working on the whole of the telecom sector; due to government of India's predatory policies.

Today, HDIL has touched Rs.57.25, intra-day. I had earlier mentioned that the scrip could make an attempt to cross the zone of Rs.57-57.50. Let us hope for the best.

Jai Balaji Industries Ltd hit another buyer freeze today at Rs.16.25. The stock has been hitting consecutive upper circuits since some time. Steel companies are going to benefit from government's massive road building program announced on 24 October 2017. In order to further optimise the efficiency of movement of goods and people across the country, government has launched a new umbrella program. This road building program, for 83,677 kilometers of roads, involves capex of Rs.6.92 lakh crore over next 5 years. Out of this, Bharatmala Pariyojana to be implemented with an outlay of Rs.5.35 lakh crore will generate 14.2 crore mandays of jobs.What is the target for Jai Balaji Industries?

If Unitech Ltd gives a close above Rs.6.30, which I think it will  as the market is highly charged, we can look for targets of Rs.8-9, in the coming days. Add on all declines. 

Future Enterprises Ltd (Rs.47.90) is going down everyday. It touched an intra-day low of Rs.48.45. After a sell call was suggested at Rs.54-55, it never crossed that levels. Its next downward target is Rs.46, breaking which it can come down to Rs.44 and then ultimately Rs.37.

Aban Offshore Ltd (Rs.191.70), today made a high of Rs.195.90. The stock could attempt to cross the resistance zone of Rs.195-198, this week.

One Free Call from my  Associated Brokerage House, BMA Wealth Creators Ltd: Intraday sell NICKEL around Rs.768, SL above Rs.778, T: Rs.755

The markets are going up, probably because the government has started to link Aadar Card even for bank transactions, making it difficult to do "Shady" real estate deals. Recently, the government announced that PSU banks or PSBs are scheduled to get booster a dose of Rs.2.11 lakh crore. The Non-performing assets of banks have increased from Rs.2.75 lakh crore in March 2015 to Rs.7.33 lakh crore as on June 2017 or more than double in just 2 years. 

You can join me, by opening a demat account in my recommended brokerage houses, with a minimum portfolio size of Rs.1 lakhs or can subscribe to my Premium Service. Also, those who have applied for the same, please give sometime for your requests to get processed. Meanwhile, either keep Rs.1 lakh ready for deposit or kindly make arrangements to transfer shares worth the same amount into your newly opened demat/trading account. For any inquiry, pleases send me a mail at: suman2005s@rediffmail.com/sumanm2007s@gmail.com. 

Moreover, if you are looking for a career in Bollwood or to get yourselves launched or get direct break in Hindi/Marathi Feature films, then you can join me in Mumbai after depositing Rs.2 lakh in the name of my firm. Your Bollywood entry would be guaranteed, after proper training in Films, for few months. Many institutes in India, may teach you acting but will not give you a break, but we will not only guide you with the nuances of Bollywood, but will also give you a break in Hindi/Marathi Movies or Television serials. Hurry up, if you are genuinely interested. Besides, if you are looking for a Bollywood orchestra night with well known singers or simple orchestra nights with, comedians and artists, in any part of the world, then you can contact me. If you are looking to produce or invest in any Hindi/Marathi feature film, video album or short film or do any such thing with a minimum budget then contact me.

I am also into Information Technology -- so if you have any work on SEO/Digital Marketing, Content Writing, Web-designing (using Php or .Net), Database management with Oracle, Software Programming using Java/C/C++, etc then you can contact me.

Market Pulse

1. My Recommended Jai Balaji Industries Ltd at around Rs.11-12, hit the buyer freeze today at Rs.14.10. I mentioned several times earlier in this blog, that the steel counters are likely to do well in the coming days, as the Indian economy slowly recovers from the twin shocks of demonetization and implementation of the GST without proper framework in place. 

2. Unitech Ltd (Rs.6.40) and HDIL (Rs.55), will be  one of the biggest beneficiaries of RERA, as the  law is likely to weed out fly by night operators. This week, HDIL might take an attempt to cross the resistance zone of Rs.67-67.50 -- keep watch.

3. The stock of Reliance Communications Ltd (Rs.17.65), should slowly move towards the natural targets of Rs.21-22, and if it closes above Rs.22.5, then we can again look for targets of Rs.25-27. According to a report in Financial Express, RCom-Sistema Shyam promises Rs.700 crore extra income and 2 million new users for Anil Ambani's telcom venture.

4. There is no stopping of the shares of Shilpi Cable Technologies Ltd, as it hit another buyer freeze today. The stock has been in the Buyer Freeze, since it was recommended around Rs.17. But I feel, the traders should book some profits in the counter, if it comes out of the UC.

5. One special call, for the regular visitors of my blog: Buy Gitanjali Gems Ltd at around Rs.67, for short term targets of Rs.71-72. Very recently, government of India withdrew an order that brought the Jewelry sector under anti money-laundering legislation. Jewelers were included in the Prevention of Money-Laundering Act in August, increasing compliance requirements. Buyers have been shying away from making purchases as they had to provide their income tax identity for transactions above Rs.50,000 ($766), hindering high-value deals. This has started to have positive effects on the bottomlines of the Jewelry companies. 

5. Today's Buy calls from my associated brokerage house BMA Wealth Creators Ltd:

i) Buy IRB Infrastructure Ltd at around Rs.213, SL: Rs.210, T: Rs.217-219 on T+1 basis.

ii)  Positional Trade: Buy STRTECH around Rs.266, SL below Rs.250, T: Rs.294.

Unitech Ltd: Few Points

1. The Gurugram-based real estate developer Unitech Ltd (Rs.6.40) which has been reeling under severe debt is seeking to sell six unencumbered land parcels to repay the deposits, as per a report published in Mint. 

2. The company will be one of the biggest beneficiaries of RERA, as the act is likely to weed out fly by night operator - it is a serious developer.

3. Unitech has a debt of Rs.6,733 crore and also owes Rs.7,800 crore to 16,300 home buyers across 61 projects. This is much less than DLF Ltd, whose share price is trading above Rs.175. 

4. The company has huge land bank, some of them in prime locations.

5. The company's MD is likely to get bail by 30 October, 2017. 

6. The season of Real Estate sector has begun and we could see the stock touch Rs.9, once again. 

Winning Strokes: Think Different

Today, was another good day for those who traded through my associated brokerage house: BMA Wealth Creators Ltd (www.bmawc.com), as Shilpi Cable Technologies Ltd hit another buyer freeze in the NSE at Rs.22.60. The scrip has been hitting the upper circuits since Rs.17, when I gave a buy call. Those who have invested around Rs.1 lakh in the scrip have already made more than Rs.25, 000 in just few days. Join the Premium Service or trade through my recommended brokerage house with a minimum portfolio size of Rs.1 lakh, to make money from the shares.

Today, three buy calls were advocated for my stock market clients:

i) Unitech Ltd at around Rs.6.30-6.40, on the expectations of some positive developments  by 30 October, 2017. In July this year, there was a report that Manish Lakhi purchased 1.54 crore shares of the company or a 0.6% stake for Rs.6.46 each. On that news the scrip made an intra-day high of Rs.7.82 on that day....The stock closed  at Rs.6.38 in the BSE.
The Gurugram-based real estate developer Unitech Ltd which has been reeling under severe debt is seeking to sell six unencumbered land parcels to repay the deposits, as per a report published in Mint.
The company in its annual report said that it is making best possible efforts to sell land parcels set aside for repayment of the deposits to comply with the orders passed by the National Company Law Board (NCLT) and National Company Law Appellate Tribunal (NCLAT) to repay all public deposits along with interest in the course of time.

ii) Reliance Communications Ltd was recommended at around Rs.17.40, on the media report that the long awaited merger between the company and Sistema announced in 2015 is finally coming to a close. The deal has received its final approval from the Department of Telecom on Monday. “RCom spectrum portfolio will be enhanced by 30 MHz, valued at Rs 7,400 crore as per latest auction prices,” the company added. The share closed at Rs.17.70 in the BSE, up 7.60% on closing basis. The scrip touched Rs.17.95, intra-day.

iii) The name of 3rd stock which is trading near Rs.37-38, will be disclosed later. 

Energy Development Company Ltd today touched Rs.23.65, before closing at Rs.22.10. This Amar Singh - Jaya Prada - company is finding difficulty to cross Rs.23-24, zone. 

Gitanjali Gems Ltd tanked further today at Rs.65.40 before closing at Rs.66.30 in the NSE. If you remember, a sell call was suggested for the scrip at around Rs.70-71.

Future Enterprises Ltd fell further to Rs.48.25, before closing at Rs.49.30, in an otherwise charged up market. The scrip broke a major support and has the chance of more correction.

Two Free Commodity Calls from my associated Brokerage House:

i) Intraday Call: Sell Crude Oil around the CMP of Rs.3398, Target: Rs.3366, Stop Loss above Rs.3416.
ii) Intraday Call: Sell Natural Gas around the CMP of Rs.195.70, Target: Rs.191.80, Stop Loss above Rs.197.60.

Also, those who have applied for DEMAT account, in my recommended brokerage house/s, should compulsorily send a scanned copy of your Aadhar Card, as per latest official guidelines.  You can send the same either to the company directly or send to my e-mail address: suman2005s@rediffmail.com or sumanm2007s@gmail.com. Moreover, those who are already having an account with the same brokerage house and have yet not updated their Aadhar Card details, are requested to do the same ASAP, to avoid suspension of the account, followed by inquiry by the authorities. 

Besides, those who have finished sending me the enclosures along with the filled up Demat Forms, should give me sometime to clear the "Deepawali" backlog. In between, make arrangements either to transfer shares worth Rs.1 lakh in the newly opened Demat account or deposit a cheque of Rs.1 lakh in the designated branch at the earliest, so that you can join me without much delay.  

Market Pulse

The Sensex witnessed its biggest ever fall during a Muhurat session on Thursday -- this much for the "Jumla Government" at the centre with "Tughlaquian" mindet. There is no news in the media regarding Jay Shah's firm as the BJP goes "Ga, Ga" over "Fake" scam - free rule. 

The BJP is going to elections in Gujarat with a shoddy economic card -- but then as long "Brain Dead" voters are there, behind the "Juma Brigade" in Gujarat and elsewhere, the party could sail past the majority mark in the future elections -- with two crooks continuing to rule the minds and hearts of some Indians.

CPI(M) general secretary Sitaram Yechury today termed the NDA government's demonetisation move as the "biggest diabolical method of money laundering" and said it had converted all black money into white.

Hitting out at the Narendra Modi-led central dispensation on the economy front, he said government's policies "have virtually ruined" the country's economy and said it did not know how to revive it and provide relief to people.

The 30-share pack shed 194 points (0.6%) on last Thursday, to close at 32,390, as small investors sold stocks on the back of weak global cues, corporate earning concerns, following twin shocks of demonetization and implementation of the GST without a proper framework. The Nifty closed 64 points down at 10,147.

The FIIs sold shares worth Rs.43.74 crore on Thursday, while domestic institutional investors bought shares worth Rs.40.78 crore.

Meanwhile, 2nd quarter earning season is going to kick off in a big way, this week, with some of the big names announcing their numbers during the period -- Hindustan Zinc, Indiabulls Housing Finance, the IT major Infosys Ltd, HDFC Bank, Asian Paints, Hindustan Unilever, HCL Technologies, et all. 

The Nifty went up in a straight line after it hit a low of 9,685 on September 28 to a record high of 10,251 on October 17, just a few days before Deepawali. The Nifty has also made a strong bearish candle on the daily candlestick charts after a ‘Doji’ type pattern. Thus both fundamentally and chartically, the Bears are on a stronger wicket. 

According to charts, the key support level is placed at 10,109, followed by 10,072. The Nifty will therefore find it very tough to cross the resistance zone of 10200 - 10700. Over and above, the October series F&O contracts will expire on Thursday, October 26, 2017, adding to the volatility in the markets. 

Another signification development is the listing of the Energy Exchange (IEX) on the BSE on Monday. The issue, which ran from October 9 to October 11, could manage to garner 2.28 times subscription. The company, which sold shares in Rs 1,645 - Rs 1,650 range had to cut the anchor investor allocation to 7,89,120 shares from 18,19,501 announced earlier. This also could bring some movements in the power related stocks. 

In midst of such doom and gloom, the investors can have a look at two stocks: Adani Enterprises Ltd at Rs.125.7 and Idea Cellular at Rs.91.30. These are however not buy calls. 

Depending on the market graph, the Paid Members, will either be given a short call in the F&O or a small cap long call this week. Watch out for the names in this blog, in the coming days.

WINNING STROKES: THINK DIFFERENT

Yesterday, Idea Cellular Ltd (Rs.90) touched Rs.91, intra-day. So, both the short term targets given on this blog has been achieved in just a couple of days Those who have made money in the scrip, should send me.....what??!! You decide....LOL. However, you can always share 10-15% profits with me, if you have made money through my recommendations in this blog...

My Recommended HDIL yesterday touched Rs.56.65, before closing at Rs.55.80. I am soon expecting a break out above Rs.57.50 if this rally continues. 

Energy Development Company Ltd (Rs.21), did not close below the immediate support levels, on closing basis; though it went to Rs.20.10, during the intra-day. What to do with the scrip?

There is not stopping of Shilpi Cable Technologies Ltd as the stock hit another buyer freeze yesterday. The scrip closed at Rs.19.70. I recently recommended the scrip to the Paid Members, at around Rs.17 -- after that the stock is hitting continuous UCs. I will recommend another such scrip. If anyone is interested to know the name, then they can either join my Premium Group or Trade through BMA Wealth Creators Ltd, with a minimum portfolio size of Rs..1 lakh. BMA Wealth Creators Ltd is one the biggest brokerage houses in the Eastern India;  having branches all over India. 

Future Enterprises Ltd (Rs.49.95), yesterday closed below a major support level. The stock could not test the intermediate lows. 

WINNING STROKES: THINK DIFFERENT

Yes, it was another good day for the bulls as the Nifty made a new record high, after it broke out of trading range with buying across segments. The Nifty managed to close above 10,200 mark after two and a half months. The rally in the market is likely to continue till the Deepawali, following which the much anticipated correction could occur. However, the causes of worry is that the stock of RIL closed flat at Rs.875.20. Shilpi Cable Technologies Ltd (Rs.17.70) was locked in the UCs till the end the day. You should accumulate the scrip on intra-day dips.

Idea Cellular Ltd recommended in this blog today at around Rs.81, soared to Rs.83.55 today. The stock is moving towards Rs.87-91. 

Energy Development Ltd (Rs.21.05) today broke a major support level. If Rs.21, does not hold, then the stock could test the intermediate low made at the beginning of this month.

HDIL today closed flat at Rs.55.70. I am expecting the stock to give a break out above Rs.57.50 very soon. The company has a good project pipeline, land bank and execution skills; though its balance sheet  is slightly leveraged. Moreover, the anemic flow of credit to the real estate sector is likely to ease as the Deepawali is approaching. However, the companies in the sector are battling a fall in sales due to economic slowdown, following demonetization. One encouraging point is that: in March this year, Godman Sachs Singapore Pte, bought 28 lakh shares of Housing Development & Infrastructure Ltd (HDIL) at an average price of Rs.83.90.

Future Enterprises Ltd today closed at Rs.50.45. After a sell call at Rs.54-55, the stock could never cross this range. If Rs.50 is broken on a closing basis, the stock could test its recently made low. 

I will recommend as small  cap to the Premium Group soon. If anyone is interested, they can either subscribe to my Paid Service or they can trade through BMA Wealth Creators Ltd, one of the largest brokerage houses in the eastern India, with a minimum portfolio size of Rs.1 lakh.  

Market Pulse

Shilpi Cable Technologies Ltd recommend on last Friday at around Rs.17, hit another buyer freeze at Rs.18.70. Where is the stock heading? Join the Premium Service and get 24x7 assistance over Whatsapp, E-mail and even through Mobile phones. I will recommend another such stock either before Deepawali or next week. Those who will opt to trade through my associated brokerage house BMA Wealth Creators Ltd with a minimum portfolio size of Rs.1 lakh, will get the name of that scrip, which is also likely to cover the cost of your Premium Subscription (if you are not interested to trade through my recommended brokerage house), if you invest Rs.1 lakh in that stock. 

Energy Development Company Ltd today touched  an intra-day high of Rs.23.50 and intra-day low of Rs.21. It is now trading at around Rs.22.55. As long as the scrip does not break Rs.21.60 on closing basis, there is no cause of worry for the bulls. 

Gitanjali Gems Ltd today touched Rs.70.90 intra-day and is now trading at around Rs.69.85. The traders are suggested to exit the scrip, as the jewelry demand has fallen by 30% according to the latest media report. You can shift to HDIL at the CMP of Rs.55.65. 

Those who are holding the stock of Reliance Power Ltd (Rs.40.55) from Rs.39-40 onwards are suggested to sell the scrip on rallies and enter or Idea Cellular at Rs.81 for targets of Rs.87-91.

A strong sell call of booking profit, was given on the scam tainted Prakash Industries Ltd at Rs.138, on last Friday on the rationale that it will find a very strong resistance at around Rs.142-143. The stock today made an intra-day high of Rs.141.50, intra-day low of Rs.132.30 and is now trading at Rs.135.50. Hope you could make money in this free call of mine.

Reliance Naval Engineering Ltd (Rs.51.20 today crashed to Rs.50.45, intra-day, after a sell call was initiated on the counter last Friday at around Rs.53. The company did not come up with good set of numbers for the September, 2017 quarters. You should exit the scrip.

Brokerage Call: T+1/BTST: Buy Cipla Ltd at around Rs.605-606, SL: Rs.596, T: Rs.622...

On the macro front, India's merchandise exports rose by 25.67% to $28.61 billion in September 2017 over September 2016, helping the trade deficit narrow to $8.98 billion, the data released by the government after market hours on Friday, 13 October 2017 showed.

The International Monetary Fund (IMF) Chief Christine Lagarde reportedly said that the Indian economy is on a solid growth track in the medium and long term due to the structural reforms undertaken by the government, and the current slowdown due to implementation of the goods & services tax (GST) and demonetisation is short term. The IMF has last week lowered India's growth forecast for 2017-18 to 6.7% from its earlier estimate of 7.2%, citing lingering impact of demonetisation and transition cost to GST.

Stock markets remain closed on Thursday, 19 October 2017 on account of Diwali Laxmi Pujan and again on Friday, 20 October 2017 on account of Diwali Balipratipada. However, markets will remain open for Muhurat trading on Thursday, 19 October 2017. The Muhurat trading session on account of Diwali Laxmi Pujan will be held between 18:30 IST and 19:30 IST on Thursday, 19 October 2017. I wish you and  your family/friends, a very Happy Deepawali.

WINNING STROKES: THINK DIFFERENT

Yesterday, was another good day for Premium Members, as Shilpi Cable Technologies Ltd was recommended a buy before the market opening. The stock came down to Rs.16.55 giving ample opportunities to the Paid Members to enter. The scrip at the end of the day again hit the Upper Circuits at Rs.17.85, much to the joy of the Paid Members. What is the Buzz in the scrip? Join the Premium Group or trade through www.bmawc.com with a minimum portfolio size of Rs.1 (one) lakh and get 24x7 assistance, through Whatsapp, E-mail and even through Cell, in emergency situations. 

After my sell call on Unitech Ltd at around Rs.7.40, the stock could never cross Rs.8. Yesterday the scrip closed at Rs.6.30 in the NSE. Similar is the case with Future Enterprises Ltd, after my sell call around Rs.54-55 - it was never been able to close above this range. The stock of Future Enterprises Ltd closed at Rs.50.35 in the NSE yesterday. Gone are the days, when every Tom, Dick, Harry could make money from the stock, at ease. The market at present has become so competitive, that even the experts sometimes make huge losses. If a new comer or a non-professional wants to make money from the share market on a consistent basis, then the guidance of a "Market Guru" or a Veteran in the trade is very  essential. See, even a "Road Sweeper" or a Scavenger Sing Songs and Kishore Kumar Ganguly also sang or Dr.Arko Pravo Mukherjee also does playback -- there is a difference isn't it? Fluke does not work, all the time!!

Energy Development Company Ltd, an Amar Singh and Jaya Prada, enterprise closed at Rs.22.25 (near the day's low) yesterday, after hitting an intra-day high of Rs.23.85. Where is the stock heading?

Reliance Naval and Engineering Ltd, though approved the Rights issue, but the company did not come up with good set of numbers for the September, 2017 quarter, as the sales fell while the interest cost shot up. You exit the scrip at around Rs.53 and enter HDIL at the CMP of Rs.55.65. HDIL is likely to give a close above Rs.57.50 soon. HDIL has one of the highest land banks among the Mumbai based real estate companies. 

The Scam tainted and BJP linked (If I remember correctly: Arun Jaitley was once its lawyer) Prakash Industries Ltd yesterday touched Rs.140.40, before closing at Rs.138.60. The stock is likely to face stiff resistance around Rs.142-143 -- so book complete profits. If you remember, I had recommended this stock several times from Rs.42 onwards. 

The traders can accumulate Gitanjali Gems Ltd (Rs.69.85) during intra-day dips for targets of Rs.75-77. It is a no-brainer that most of the Jewelry stocks rises before the Deepawali. Keep a SL  of Rs.66.

The Nifty  spot closed at 10,167.45 and was trading at a P/E of 26.41 on 13 October, 2017, much higher than the new normal of 19. Therefore, I expect correction at any time or the moment the stock of Reliance Industries Ltd (Rs.877.35) stops jacking up the indices.  This unusual phenomenon happened during 2005-2008 period also -- so nothing new. The Reliance Group is known for such outlandish movements, since the time of Dhirubhai Ambai, who was more of a stock market punter than a hardcore businessman. When RIL starts to give such unusual movement, it generally indicates the end of the current trend. So, be careful and don't take too deep long positions in the future market. Stay Light -- Stay Tight with your SLs.

WINNING STROKES: THINK DIFFERENT

In the morning write up, I mentioned about identification of 5 scrips which could give good returns to the traders in the short term. These scrips was given to the Paid Members and also to those who are trading with a minimum portfolio size of Rs.1 lakh, through my associated brokerage house, yesterday night and today morning before the market opening. Now let us look at these 5 scrips and their performance today, in the bourses:

1. Videocon Industries Ltd (Rs.16.65), was recommended a buy at the opening bell at 9.15 am. The scrip gave scope for the traders in the opening hours to enter before hitting the upper circuits.

2. Energy Development Company Ltd was given a buy at Rs.18.50, with a SL at Rs.16.40 on the news of Indian Energy Exchange IPO. The stock hit the upper circuits at Rs.20.45 in the BSE. Where is the stock heading?

3. Gitanjali Gems Ltd was given a buy with a short term target of Rs.82. This is a no-brainer as most jewelry shares rise before "Deepawali". The scrip hit a high of Rs.74.75 in the BSE, before closing at Rs.72.40.

4. A buy call was initiated in Reliance Naval and Engineering Ltd at Rs.51.50, before the results. The stock hit an intra-day high of Rs.53.15, in the BSE before closing at Rs.52.7.

5. Reliance Power Ltd was recommended a buy with a target of Rs.47-51. The stock hit an intra-day high of Rs.41.35, before closing at Rs.41.05.

Apart from these scrips, pick of the week from my associate brokerage house www.bmawc.com was also sent to the Premium Group members.. 

It was buy of the shares of Infosys Ltd at Rs.920, with a Stop Loss of Rs.885, for Targets of Rs.955-968. The scrip touched intra-day high of Rs.928.60 in the BSE,, before closing at Rs.923.65.

Join my Premium Service or trade through my associated brokerage house with a minimum portfolio size of Rs.1 lakh and get all these Free of Charge. You are already trading through some brokerage house/s.....you just need to change the brokerage house and get the shares transferred to BMA Wealth Creators Ltd, one of the largest Financial Conglomerates in the Eastern India.

You can send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com.

Market Pulse

It has  been long that I  have posted in this blog, after an attack of Malaria. The disease takes a toll on

Photo: missrsterczek.com

your health and makes a person very weak. I am slowly recovering from the sudden blues. 

Anyway, the market, after a brief correction  is moving up basically due to Reliance Industries Ltd [Rs.837.05] and some metal shares like Tata Steel Ltd [Rs.691.45].
There is no guarantee how long this forced rally will continue as the markets are likely to open in a negative note today, tracking the global markets. According to the latest media reports: Reliance Industries Ltd has decided to exit one of its three upstream shale gas assets in the US for $126 million. RIL had bought a 60% stake in it for $392 million in 2010. So, how the shares of Reliance Industries Ltd are rising, even after this loss and due to its telecom brinkmanship in RJio is a question!!

Anyway, I have identified 5 (five) stocks for the clients which could give good returns to the investors before "Deepawali", if and only if this rally holds water. These five stocks are from various sectors, including power, defense, etc. If anyone, wishes to know the names of these stock, they should either trade through my recommended brokerage house or go for yearly subscription. 

Now, few points, I would like to mention here on some news which appeared on pink dailies: 

1. The ET writes: 

Banks face the prospect of haircuts or `loss on defaults' of up to 50% on Reliance Communications debt, according to Goldman Sachs. That's despite the Anil Ambani-led telco looking to cut its Rs.47,000-crore plus debt via alternate asset sales after its merger with Aircel was scrapped. 

This will further aggravate the pains for the shareholders of RCom Ltd [Rs.17.1], whose share is trading near its 52-week low price; after the  disruption created by RJio and NDA government's high spectrum prices shook the sector.  

2. Jaiprakash Associates Ltd [Rs.19.9] have been moving up since the last few days on some news of debt cut, though nothing has happened on ground, till date; as the company reels with a debt of ~Rs.30000 plus crore.. The company said its board had approved the transfer of certain assets and liabilities, including a debt of over Rs.11,834 crore, to its subsidiary Jaypee Infrastructure Development Ltd as part of its efforts to cut the overall borrowing of the company. But this is just an arrangement, will  not lower the real debts of the company. The stock is not likely to go above Rs.22, in the short term. 

For more such inputs and 24x7 help through Whatsapp and E-mail, you  can go for my yearly package or trade through my recommended brokerage house, with a minimum portfolio of only Rs.1 (one) lakh [Special Deepawali Offer]. 
You are already trading through some brokerage house or the other -- you just need to shift from that, into my associate brokerage house. This will also help me cover up some of my costs and you will get everything for Free. Your sincere co-operation is solicited, for Mutual Benefits.
For the time being Super Special Call Package has been kept on hold, due to uncertain market conditions. You can send me a mail at: suman2005s@rediffmail.com / sumanm2007s@gmail.com.