SumanSpeaks: The Information Super Highway

AFTER MARKET OPENING CHART CHECK Yesterday, the Indian markets slid for fifth day in succession and Nifty closed with a loss of 76 points. It made an intraday high of 5861 and low of 5747. 530 points of rise which took 21 trading sessions from the low of 5566 to a high of 6096 has been corrected with 346 points of fall within five days. This clearly showed strength of Bears over Bulls. A close below 6000 was already an exit for short term long positions as mentioned to the Paid Groups, and a close below 5900 has also marked an exit for medium term long positions also. The 200 DEMA supports of 5800 have also been broken. However, the downturn which started with the breaking of 6000 has probably ended today with Nifty_Spot, getting support at 5700 mark. So, traders can go long on Nifty.  Nifty_Futures : For Wednesday, July 31, 2013, the trend deciding point emerges at 5767 mark. The second weekly support stands at 5770 mark. The current trend is still down, the...

Policy review : RBI hints at status quo, will focus on stabilising rupee [ Editor : The US, like India imports large quantity of oil products (or Crude Oil and its derivatives) for domestic consumption and at present it is carrying out QE3, but the inflation has not inched up much since the start of  this easing process. This  is the beauty of the US administration.  On the contrary, it seems the government of India has given the RBI, an authority to manage everything, starting from inflation to growth, though both the issues are more to do with structural problems in the economy, as too much tightening for too long has already harmed it. This is attested by the increase in the cases of NPA in Banks and restructured loans of companies. But the government seems to be hardly bothered. What I feel at this stage is that : the RBI should for repeated rate cuts till the REPO Rate comes to around 6%. At the present rate, who can compete with foreign companies? Though t...

Mumbai slum development project hangs in the balance ~~Khushboo Narayan Mail Me |  Madhurima Nandy Mail Me |  Unnikrishnan S. The High Court Verdict Very Soon........... Mumbai/Bangalore: In October 2007, when Housing Development and Infrastructure Ltd (HDIL) won a contract to rehabilitate slumdwellers encroaching on Mumbai airport land, the project held out the promise of a bonanza for the real estate company and its investors. The country’s largest slum redevelopment and rehabilitation project, it entailed building new tenements for 85,000 families and relocating them, freeing up 276 acres for Mumbai International Airport Pvt. Ltd (MIAL) to build a new terminal and other facilities and expand the runway.   After HDIL won the contract, brokerages forecast yearly revenue growth in excess of 50% for the company over the next three years and assigned fat valuations to its stock.   Less than six years later, work on the rehabilitation project has come to ...

CENTRAL BANKS : RESULTS NOT THAT BAD Central Bank of India has announced the following results for the quarter ended June 30, 2013: The Unaudited Standalone results for the Quarter ended June 30, 2013: The Bank has posted a net profit after tax of Rs. 219.30 million (Rs.21.93 Cr) for the quarter ended June 30, 2013 as compared to Rs. 3359.50 million (Rs.335.95) for the quarter ended June 30, 2012. Total Income has increased from Rs. 56249.70 million for the quarter ended June 30, 2012 to Rs. 64434.50 million (Rs.644.35 Cr) for the quarter ended June 30, 2013. BUT WHAT MOST OF US MISSED IS THAT THE NET PROFIT TOOK A HIT DUE TO HIGH PROVISIONING. The operating profit in Q1FY13 is Rs.1000.57 Cr as against Rs.792.91 Cr on Q-o-Q basis. So, is this bad, in any case? The provisions and Contingencies has increased from Rs.352.94 Cr in Q1FY13 to Rs.983.26 Cr in Q1FY14. This has actually dented the net profit margins. Hence the results are not that bad as is made out to be. Still t...

Market Mantra The Markets are moving during the last couple of days, as expected. A buy call on Nifty_Futures was given at 5940, a couple of days back, and the momentum is still continuing. Today, morning, the Paid Members, were asked to hold on to their longs with the target of XXXX. The Nifty_Futures already made a high of 6074.40, in the intra-day trade. The rest of the details and some inputs on Bank Nifty is only for the Premium Service Members. Join the Paid Service, or Trade through my recommended brokerage house, to stay ahead of others, in these market conditions.  NTPC, along with NMDC (BSE Code: 526371) and  SCI could end up making windfall gains from the govt's decision to preferentially allot them coal blocks for commercial exploitation. Buy NMDC at Rs.105-106, T--Rs.117, Sl--Rs.103 (Exit). Earlier, ICICIdirect.com said that they were bullish on NMDC and had recommended buy rating on the stock with a target price of Rs.138 in its July 04, 2013 research rep...

WINNING STROKES : THINK DIFFERENT Kalindi Rail Nirman Ltd, yesterday touched Rs.74.80. It thus completed all the targets, Rs.58, 66 and Rs.72, in yesterday's trade. The scrip if you remember was recommended around Rs.49-52, some weeks back.  The Nifty_Futures today also, gave a gain to the Paid Members. They were asked to buy Nifty_Futures, in any fall towards the band of 5900-5880 with a stop loss of thirty points. What will be done in the next week? What are the ranges of Bank_Nifty for the next week? What will be new news on the scrip which was recommended again and again in this blog? To know all these join the Paid Service.  Kohinoor Broadcasting Corporation Ltd today touched Re.0.22, before cooling down a bit and closing at Re.0.21. Paid Service members were They were asked to accumulate around Re.0.16-0.17. The circuit limit of the scrip has been increased from 5%. What does this indicate? Also, what is the latest news on the company? This news is exclusively ...

Indian real estate : time to pile in, thanks to the falling rupee? ~~by Avantika Chilkoti  Jul 10, 2013: As the Indian rupee hits record lows against the dollar , there are all sorts of knock-on effects. Perhaps take a holiday to India or remit savings to relatives in the country where the dollar goes much further? Or perhaps invest in property? Jones Lang La Salle, the property services company, expects Non-Resident Indians (NRIs) will take advantage of the cheap rupee by investing in real estate. Property in India has become more and more expensive – it’s bad news for the country’s low-income population but good news for people earning abroad and investing that money into bricks and mortar in the subcontinent. Since the financial crisis, prices have rocketed by around 40 per cent in major markets, according to Jones Lang La Salle. And with the rupee down 10 per cent against the dollar in the past three months , buying real estate in India is now relatively cheaper for N...

Housing Development and Infrastructure ( HDIL ): Annual Report , 2011-12 ( FY12 )

Online real estate business likely to grow : experts Mumbai: With a rising number of property portals entering the market, the online real estate business is expected to improve gradually as these websites bring transparency by providing high quality information about projects, according to industry experts. Property portals are increasingly becoming a tool for research on buying, selling and leasing residential or commercial properties in many parts of the country, as the amount of information listed on these sites is increasing. "By increasing the quality and quantity of information available to end-users, we attempt to bring in greater transparency to the entire gamut of buying/selling properties. It is our constant endeavour to increase the amount of information listed about a particular property and to avoid spam or incorrect listings," Magicbricks.com business head Sudhir Pai told PTI. According to experts tracking the realty sector, sites such as Magicbrick...

Indian Telecom Sector : Mixed Response From Anand Rathi

WINNING STROKES : THINK DIFFERENT Glodyne Tech Ltd hits the buyer freeze in the opening trade. I had asked all in the Facebook to buy the IT companies, who has overseas subsidiaries. Because, unhedged depreciated rupee is expected to  have positive on the balance of these companies. Also, I had mentioned some days, back, that at present the company is doing 2-3 projects and is expected to get few more in the next couple of months. The current price of Rs.9.38 is absurd, it will soon move towards Rs.50, in the coming days, as the company is limping back to normalcy.  My last week recommended Mastek Ltd at Rs.116-117, reached its first target of Rs.126 today, after it touched Rs.126.70, intra-day. The scrip closed at Rs.124.45, up 3.24% on a closing basis. My recommended Shree Renuka Sugars Ltd at Rs.16-16.50, today touched Rs.18.40. Now if it crosses Rs.18.70, then the next target is Rs.21-22. The scrip was recommended on the twin reasons: (i) It has overseas subsidia...

Kohinoor Broadcasting Corporation Ltd : Annual Report, 2012

Infinite Computer Solutions (I) Ltd : Ready To Move Up Infinite Computer Solutions (India) Limited is a global provider of software solutions in the areas of Application Management, Infrastructure Management, Product Engineering and Mobility and Messaging with focus on the Telecom, Healthcare, Media & Content, Energy & Utilities and Banking & Finance verticals.  With a global team of over 5000, Infinite partners with Fortune 500 companies from Telecom, Healthcare, Energy & Utilities, Media & Content and Banking & Finance industries to provide Application Management, Infrastructure Management and Product Engineering Services including Mobility & Messaging Products and Solutions. Shareholding Pattern : The promoters hold 67.47%, while the general public holds a mere 32.53% of the shares of the company. The FIIs hold 10.28% of the shares of the company while the DIIs hold 0.50%. The corporate bodies hold 2.24% of the shares of the company lea...

Indian Auto Sector : Anand Rathi says "Avoid"

Banking Sector : Higher provisions on UFCE may not affect much Emkay Global Financial Services has come out with its report on banking & financial services: Draft guidelines suggest higher provisions/risk weights for exposure to corporates with unhedged foreign currency exposures (UFCE) to protect banks from volatility in currency.  Since provisions/risk weights apply to total banking exposure (including hedged FCE or domestic loans), it will impact bank even if they have INR exposure to corporate.  Easiest way out for banks would be to collectively force borrowers to buy hedges against UFCE and thereby reduce impact. This will also be positive for fee income. Impact could be more for banks with higher non-agri/non-retail exposures. We guesstimate impact of 3-6bps on ROA for PSU banks and even less for some of the private banks. The higher provisioning requirement is not limited only to the UFCE but on total banking exposure. Thus, even if Bank A does not hav...

Emerging-Market Stocks Rise Led by Egypt as Rand Climbs ~~By Maria Levitov, Julia Leite & Anuchit Nguyen Jul 10, 2013: Emerging-market stocks advanced for the first time in three days as Egyptian and Hungarian shares surged. South Africa’s rand paced gains in currencies. The MSCI Emerging Markets Index added 0.8 percent to 913.51 at 4:10 p.m. in New York. Egypt’s EGX 30 Index led gains among 94 world gauges tracked by Bloomberg as the interim president set a timeline for new elections. Mol Nyrt., Hungary’s largest refiner, drove the nation’s benchmark measure to a three-week high. The rand gained for a second consecutive day as an illegal strike at a South African platinum company ended, while South Korea’s won rose the most in five months. Stocks rebounded from a two-day slump which took the benchmark of developing nations to the lowest level since June 26 amid concern about an economic slowdown and political turmoil. The United Arab Emirates, which took an hour to welc...

This is no time to bet against Re, never mind Chidambaram Reason : 60 is probably the number at which every business starts looking different - especially those which have a dollar component in their costs or revenues. If the dollar is in costs - as in foreign debt or import components -businesses will import less; if it's in revenues, you will start seeing a revival in export earnings. Therefore, buy the stocks/shares of IT, Textile, and Pharmaceutical companies, which might see a boost in their export earnings. Also, the Real Estate companies might see, more inflow of foreign capital, as the INR becomes cheaper against the USD. Also, buy the shares of Kohinoor Broadcasting Corporation Ltd at Re.0.19, as it seems it is on the uptrend. Another point to be noted is that: As on March 31, 2012, Glodyne Technoserve Ltd's (CMP: Rs.9.20) subsidiaries included Glodyne Peoplepower Limited, Smaarftech Technologies Private Limited, Glodyne Technoserve Inc., DecisionOne Corporation US...

Banks bid to contain NPA in corporate accounts INDORE: State Bank of India (SBI) has five non-performing asset (NPA) corporate accounts in Indore and Bhopal of the state. Large corporate accounts are normally valued at Rs 10 crore and above. Mid corporate group of SBI has two branches in the state, one each at Indore and Bhopal. Talking to ToI, general manager and head of the group, Abhay Chaudhry who sits in Indore, said, "We have five corporate accounts in all three branches which have turned as NPA." He added, "Two out of five such NPA corporate accounts have already been referred to corporate debt restructuring (CDR) cell and one of them was likely to have its turnaround shortly." CDR normally restructures such NPA account by either reducing the interest rate or extending the repayment tenure. Chaudhry maintained that his bank was making all efforts to turn such NPA accounts to regular ones. Any bank loan, in case repayment does not start in three months...

Central Bank of India Unveils 'Wonder Card' in Bihar Public-sector bank, Central Bank of India has unveiled 'Wonder Card', a new debit-cum-credit card, for the benefit of salaried customers in Bihar. This new card will allow a customer to withdraw a fixed amount in excess of his salary which will be adjusted in salary head in the next month with interest at the bank's base rate at 10.25%, in addition to 4% interest. A Wonder Card holder with a salary of up to Rs 25,000 per month can withdraw a surplus amount of Rs 10,000 against his salary amount, while one with Rs 60,000 salary could withdraw Rs 25,000 surplus amount, while with salary of more than Rs 60,000 per month could withdraw up to Rs 60,000. Central Bank of India has 4,300 branches and 2,500 ATMs with a Pan India presence of all the branches connected under the CBS platform. The bank has a business turnover exceeding Rs 4 lakh crore. Courtesy : Indian-Commodity

WINNING STROKES : THINK DIFFERENT Yesterday's call on Nifty_Futures, reached both the 1st and 2nd targets today. There is not much negative news in the markets and this is a great news for the bulls. Wait for some more upper movements, as large scale short covering is about to take place. Many brokerage houses and Advisory Services, who gave a sell call are in great trouble. The Levels will be given to the Paid Group members and to those who trade through my recommended brokerage house.   Yesterday's call Wipro Ltd touches Rs.351.90 today, before closing at Rs.350.75. The IT sector is expected to do well in the coming days, due to obvious reasons (I think I do not have to mention the same reasons every-time). Buy Glodyne Tech Ltd (CMP: Rs.9.80).  Yesterday's call Mastek Ltd at Rs.117-118, today touched Rs.121.85 before closing at Rs.120.80. The company came out with decent set of numbers for the Q4FY13.

WINNING STROKES : THINK DIFFERENT My yesterday's call Shree Renuka Sugars Ltd at Rs.16.50, today moved to Rs.17.15 before cooling down at Rs.16.75. Buy call was given on the news that, the State-owned oil marketing companies are planning to float tenders in July to procure around 600 mln ltr of ethanol. Today a buy call was initiated in Nifty_Futures at 5765 for a target of 5820, which I think will be achieved within this week. Today, the DIIs were net buyers while there was selling basically from the FIIs.  A Buy call was initiated today in  Wipro Ltd at Rs.344-345, T--Rs.358--361, SL--Rs.339. The depreciation in the INR against the USD is positive for all the IT counters.   Some Important News : (+VE) TELECOM : The Telecom Commission is in favour of allowing 100% FDI in the sector with the condition that FDI up to 49% will be automatic, said a senior official. (-VE) COAL INDIA : Produced 102.87 MnT of coal in Q1FY14 against the tgt of 106.88 MnT. (-...

WINNING STROKES : THINK DIFFERENT Glodyne Tech Ltd hits the buyer freeze in the opening trade. I had put some positive inputs on the company, a couple of days. CMP: Rs.9.61. For HDIL, it is a one-way journey for the scrip, as a spate of positive news hitting the counter during the last few days. CLICK HERE . Moreover, the real estate sector has started to look good once again. Today, the scrip touched Rs.42.60, before closing at Rs.41.55. CLICK HERE .  Mastek Ltd, which was recommended at Rs.116-117, last week to some Paid and Free Members, today touched Rs.122.90. I have been asking all to be long on the IT counters, since the last few weeks. Tata Power Ltd seems to have given a break out and is ready to move up in the coming days on the back of POSITIVE news in the power sector. There were earlier media reports that, Tata Power Ltd is scheduled to charge 25% higher tariff to Mumbai residential consumers; MERC also approved a multi-year tariff plan till 2016.Positive in...

Housing Development and Infrastructure Ltd ( HDIL ): One Way Street After positive reports from a number of Brokerage Houses, the scrip has started to move up again. The fundamentals of the company is very strong and the current price of Rs.41, does not give the correct picture of the things. The scrip is having a book value of Rs.243 and is a going concern.  Meanwhile, the stock of Mumbai-based HDIL rose 9.9% in the afternoon trade after reports came out that Bombay High Court, today gave interim relief to Mumbai based realty developer, in a case involving the company, Mumbai International Airport (MIAL) and Slum redevelopment authority (SRA).  The High Court has barred SRA from initiating proceedings for repossession of tenements built by HDIL under slum rehabilitation project of MIAL, television reports said. In May this year, HDIL said the MIAL terminated the contract with it for the slum rehabilitation project and HDIL had moved court against MIAL, S...