SumanSpeaks: The Information Super Highway

WINNING STROKES: THINK DIFFERENT Tulip Telecom Ltd (Rs.4.27) hits another buyer Freeze in the opening trade. The scrip was recommended to the Paid Groups and to those who are trading through my recommended brokerage house this week.  BHEL Recommended this week around Rs.148-149, today touched the 3rd target of Rs.167. The Scrip made an intra-day high of Rs.168.30. Now what to do with this scrip? Join  the Paid Service, to get assistance during the market hours.  Hindalco Industries Ltd recommended only a couple of days back at around Rs.98-99, today touched Rs.105.90 in the BSE and Rs.106.40 in the NSE, which is almost near the 1st target of Rs.107.  Jamna Auto Industries Ltd (BSE Code: 520051), today hit 3rd consecutive buyer freeze, after it was recommended this week. Today, I shall be recommending a similar scrip in the Paid Blog .  Country Club India Ltd today moved up to Rs.7.90 before closing at Rs.7.80, up 6.56%. This company is expected t...

WINNING STROKES : THINK DIFFERENT In the morning inputs to the Paid Group , it was mentioned that if the Nifty_Spot can hold above 6220 on the upside, then  it might manage to cross 6240 during the days. The Nifty rose to 6245.95 intra-day, before closing at 6238.80 with a gain of 38.75 points. Also, the stock from the automobile sector which was recommended yesterday night, hit the buyer freeze today at Rs.58.40. The  name of the scrip will be disclosed tomorrow evening. Today, I could recommend another stock from the small cap space to the Paid Group members and to those who are trading through my recommended brokerage houses. In these kinds of markets the best strategy is to buy and keep holding, the profits are expected to come, if your choice of stocks are right, be it Manappuram Finance Ltd (Rs.22.85, recommended at Rs.18 and Rs.15) or BF Utilites Ltd (Rs.543.30, recommended at Rs.129) or MCX Ltd (Rs.524, recommended at Rs.264).   BHEL recommended around Rs...

WINNING STROKES : THINK DIFFERENT [ Editor : I want to speak about something which looks off-topic here, but I feel the time has come discuss these things also, before Indian society gets destroyed by few individuals. Anyway, kindly, tell me if an Individual / a group / an organization celebrates ONLY International Women's Day, instead of both: International Men and Women's days, can they be called "Racists" or "Gender Biased Groups/ Organizations/ Individuals"? Please do think about this matter seriously,  which is generally avoided by the mainstream media,  and if possible send me your feedbacks] Tulip Telecom Ltd, was given a buy a couple of days back to the Paid Members  and to the members who are trading through my recommended brokerage  houses at around Rs.3.50-3.70 for a target of XXXX (for Paid Members only); today the stock hit the buyer freeze. Meanwhile Allied Digital Services Ltd (Rs.13.70) recommended strongly today to the Paid Groups...

Gold, Silver Hit 4-Month Highs On Bullish Chart Postures 2/24/2014: Gold and silver prices ended the U.S. day session solidly up and scored four-month highs Monday. The markets were boosted by slowly improving technical pictures. Gold saw increasing safe-haven demand amid geopolitical concerns. April gold was last up $14.30 at $1,337.90 an ounce. Spot gold was last quoted up $11.80 at $1,338.50. March Comex silver last traded up $0.283 at $22.065 an ounce. The Ukrainian president was ousted over the weekend and is now in hiding and wanted for murder. The situation there remains very fluid. If violence escalates in Ukraine, much more risk aversion would enter the market place. The Ukrainian developments and some civil unrest and violence in Thailand are prompting increased safe-haven demand for gold. There was a Group of 20 economic and finance ministers meeting in Sydney, Australia, during the weekend. The group laid out a plan for the major industrial economies to contin...

WINNING STROKES : THINK DIFFERENT Buy Jubilant Lifesciences Ltd at Rs.115.95 As expected Allied Digital Services Ltd  moved up today, before closing at Rs.13.33. The scrip hit an intra-day high of Rs.13.35. I had earlier given a target of Rs.17-18 for the scrip in the short term, as its Q4FY14 results are expected to be good.  Entegra Ltd today touched Rs.4.05 before closing at Rs.3.99. I hope most of you have taken position in this fantastic company.  P C Jeweler Ltd today touched the 6th target of Rs.102, before closing at Rs.99.25. If you remember, this scrip was strongly recommended at around Rs.72-73 some weeks back and has given fantastic returns over a period. The other two recommended counters, viz. Shree Ganesh Jewelry House (I) Ltd (Rs.27.60) and Gitanjali Gems Ltd (Rs.83.05) are also expected to give good returns going forward. Whether the government cuts the import duty or not, the gold companies who are export oriented would continue to do well in...

Listed companies face heat for violating disclosure norms [ Editor : The news below says that the NSE and the BSE have imposed fines or suspended trading in over 1,100 cases of non-compliance. But I do not find any usefulness of such moves, from the small investors point of view; who have put their hard earned cash, based on the assurances given by the regulators. Now if this is the type of regulation, where a share becomes illiquid, after being suspended, then I feel there is something wrong with this system, and needs to be re-looked closely. The point to be  noted here is that, the regulators are being paid from Tax Payers' hard earned money, so that the investors in these companies are protected, but if in the name of protection further problem is created for the shareholders, then it does not make any sense, isn't it? On the contrary, what is necessary, is to persecute or take to task those company officials, who are found to flout the norms set by the exchanges, by ...

Who is #1 consumer of gold ? Does smuggling count ? Indian jewelers want tariffs reduced New Delhi, February 21, 2014: The recently released Gold Demand Trends Report 2013 by the World Gold Council states that China surpassed India to become the world’s top consumer of the yellow metal in 2013. However, based on official imports and smuggled gold, India’s consumption is still higher. According to the report China tops the list with total gold imports of 1066 tons. India’s official gold imports totaled 975 tons during the year. The report also states that nearly 200 tons of gold were smuggled to India during the year. Adding the official and smuggled gold, the total gold consumed by the country would be 1075, which is higher than the gold imports by China. The tight curbs imposed by the government and the Reserve Bank of India (RBI) brought down the official gold imports by the country. On the other hand, the short supply of the yellow metal led to increased gold flow th...

Jewellers tell govt to reduce gold import duty to 2% Though import duty increase had reduced import through official channel, it fuelled smuggling of the precious metal to India. The Gems and Jewellery Export Promotion Council has demanded the government to reduce import duty on gold from the existing 10 per cent to two per cent. The council comes under the ministry of commerce. In a memorandum to the ministries of commerce and finance, GJEPC said the government, with duty hike on gold imports,  had managed to bring the current account deficit under control.   “Since the imposition of 80:20 scheme (under which 20 per cent of imported gold should be supplied to jewellery exporters), the desired curb in the total import of gold has now been duly achieved. So the import duty should be rolled back to much lower rate, say two per cent,” said Vipul Shah, chairman of GJEPC. Shah argued that restriction on gold import had affected export of gems and jewellery, which ...

WINNING STROKES : THINK DIFFERENT Glodyne Technoserve Ltd hit another buyer at Rs.7.61 in the BSE as expected. The scrip as I mentioned earlier, should be moving towards Rs.14-15-17 in the coming days. The company is thinking of selling some of its assets to reduce the debts. It is still receiving money from the government contracts, however, the delays in the government policy decisions in relations to UID linkage to its social benefits projects such as NREGA which made its investments in the large size contracts idle and non return yielding for a longer period of time. The Company had already invested in the Capex and Opex for such projects and the returns from the projects were expected over a period of time. Annand Sarnaaik, the Chairman and Managing Director of Glodyne Technoserve Ltd, had already sent out an emotional appeal of sort to reach out to his well-wishers. He says, "Even though the times are extremely testing, I along with my co promoters and the team have be...

  Hindalco Industries Ltd : SELL  CMP: Rs.97.4 Hindalco Industries Ltd came out with a flat topline and depressed bottmline for Q3FY14. The total income of the company for the December, 2013 quarter came as Rs.7477.28 Cr as against Rs.7189.80 Cr in the same period previous year and slightly higher in case of September, 2013 quarter.  However, the net profit of the company came as Rs.333.98 Cr in December, 2013 quarter as against Rs.433.52 Cr in Q3FY13 and Rs.357.11 Cr in Q2FY14. The nine months EPS of the company stands at Rs.5.95, which indicates the stock is ready for some correction. A sell call was given to the Paid Group members today, for a short term target of Rs.93. However, it can go down to Rs.91 also, in the short term.   In Q3FY14, lower other income and Higher effective tax rate  affected financial performance despite good  operational performance. Hence, over a longer time period,  the outlook remains bullish,...

GJEPC's arduous efforts may provide some relief to the gems and jewellery sector Courtesy : eBay Kolkata, Feb 20, 2014: The Gems and Jewellery sector; which is the 2nd largest sector contributing to the Indian economy has posted drop in the exports since last 12 months, hurt by the government and central banks steps to curb gold imports to help reduce current account deficit. In its on-going attempt to ease the import duty norms on gold to eventually increase the finished jewellery exports, The Gems & Jewellery Export Promotion Council has once again requested the Ministry to reduce the import duty through a recommendation letter made on January 2, 2014. There is a possibility that the Council's duty reduction proposal may get accepted in part or completely before the last session of parliament, hope GJEPC officials. The import duty on import of gold bullion has been increased from Rs.300/- per 10gms to 10% in stages. According to Vipul Shah, Chairman, G...

WINNING STROKES : THINK DIFFERENT Entegra Ltd today touched the upper circuits at Rs.3.89, before setting at Rs.3.73, up 0.54%, in a day when the Sensex tanked 186.33 points. Invest at least 50% of your capital and keep holding.   Glodyne Technoserve Ltd where a buy was given a couple of days back, hit another buyer freeze today. It seems the scrip would now steadily move to Rs.14-15, where you can book profits.  Most of the Jewelry stocks were up today. Meanwhile P C Jeweler Ltd hit the 4th target of Rs.97, as it touched Rs.98.05 intra-day. I hope most of you have made money in this scrip. In the same way, Shree Ganesh Jewelry House (I) Ltd closed at Rs.27.70, which is near the day's high of Rs.27.90, indicating bullishness in the scrip. The government is likely to cut, 2% import duty on gold by the end of this month. However, when the demand for gold is so high in the domestic market, the Gold Jewelry stocks would continue to outperform the broader markets. Shree G...

Jewellers urge reduction in gold import duty to 2% Argue that the curb on gold import hit gems and jewellery export from India Courtesy : www.sify.com Premier jewellery export promotion body under the Ministry of Commerce, Gems & Jewellery Export Promotion Council (GJEPC) has urged the government to reduce import duty on gold from the existing 10% to 2%. In a memorandum to the Ministry of Commerce and Ministry of Finance, GJEPC said that the government has achieved the desired result of the import duty increase on gold as the curb on gold import has yielded the current account deficit (CAD) under control. “Since the imposition of 80:20 scheme (under which 20% of imported gold should be supplied to jewellery exporters), the desired curb in the total import of gold has now been duly achieved. So the import duty should be rolled back to much lower rate say 2%,” said Vipul Shah, chairman of GJEPC. Shah argued that restriction on gold import has affected export of ...

India May Cut Import Tax on Gold Photo : Newswala.com New Delhi,   Feb. 19, 2014: I ndia is likely to cut its import tax on gold before the end of February to between 6% and 8% from the current level of 10%, a senior government official said Wednesday. India's government had gradually raised the import tax on gold to 10% from 2% since early 2012 to bring down the country's current-account deficit. It tightened restrictions further last year by asking importers to re-export at least 20% of the gold they bring into the country. The government is now considering reducing the import tax as the current-account deficit is estimated to have fallen by almost half to around $45 billion this financial year ending March 31 from $88 billion last year, the official told The Wall Street Journal. On Monday, Finance Minister P. Chidambaram said that the government would review the current restrictions on gold imports. The import curbs have led to a sharp rise in smuggl...

Gold smuggling in India to accelerate if import curbs stay : WGC Photo : Newswala.com MUMBAI/SINGAPORE: Gold demand in India is expected to be robust in 2014, likely leading to a further jump in smuggling if curbs on bullion imports remain, the World Gold Council (WGC) said. Indian gold consumption is expected to be 900-1,000 tonnes in 2014 on strong jewellery and investment purchases, according to the WGC, still slightly behind top buyer China, whose demand is expected to be 1,000-1,100 tonnes. Bullion demand in India rose 13 per cent last year to 974.8 tonnes, according to the WGC's quarterly report issued on Tuesday, in a sign that consumer appetite has been largely unaffected despite restrictions on gold imports. Struggling with an unprecedented high trade deficit and a plunging rupee, India was forced to impose curbs on gold - the second-biggest expense in its import bill. A record high import duty of 10 per cent and a rule tying import quantities to ex...

Gold import restriction helps parallel economy more than real economy Demand has gone up by 13 per cent in the current fiscal to 975 tonnes even as imports have fallen. Photo: Rediff.com Gold restrictions imposed by the Finance Minister has been cited as one of the main reasons for reining in Current Account Deficit (CAD) to 1.2 per cent as against a peak of 4.9 per cent. The FM in his Vote on Account speech said that CAD for the current fiscal will touch $45 billion as against $88.2 billion in the previous year. Import restrictions and hiking import duties three times during 2013 resulted in lower gold import, at least from the official channels. World Gold Council (WGC) while releasing its quarterly report has said that import restrictions have had little impact on gold demand in the country. Demand has in fact gone up by 13 per cent in the current fiscal to 975 tonnes even as imports have fallen. Since government started tightening gold imports through duty hikes and ...

WINNING STROKES : THINK DIFFERENT P C Jewelers Ltd today touched Rs.94.90, intra-day before cooling down at Rs.93.95.  I had already given a target of Rs.102-103 for the scrip in the short term. In the same way, Shree Ganesh Jewelry House (I) Ltd today touched Rs.28, before cooling down at Rs.26.95. Gitanjali Gems Ltd touched Rs.65.75 before closing at Rs.64.25. All these Jewelry companies came out with satisfactory set of numbers for the Q3FY14. You just need to buy and keep holding, till they are near their targets--please don't trade.  March, 2014 is very near and the government of India,  is likely to relax the import restrictions on Gold. However, more than all those tall talks of reducing fiscal deficits through curtailing gold imports, it seems there are other reasons for the keeping the restriction in Gold Import intact. DNA India, on 16 February, 2014 , writes: "As a result the biggest beneficiaries will now be politicians and other powerful peopl...

Will look into easing gold import curbs - Chidambaram [ Editor : The Premium Blog , was already been updated yesterday, regarding this new development. Those who are trading with my recommended brokerage house/s can also check there. Also, some inputs on SAIL (Rs.60), Glodyne Technoserve Ltd (Rs.6.50) and Allied Digital Services Ltd (Rs.13.5), BHEAL (Rs.148)etc. were also placed there, along with an update on Nifty] New Delhi, Feb 17, 2014: India will look into relaxing gold imports curbs, but won't let its current account deficit (CAD) balloon, Finance Minister P. Chidambaram said on Monday. "There are pros and cons (on easing gold import curbs), we will weigh them carefully, the goal is to contain the CAD at a level where it can be fully and safely financed," Chidambaram told reporters after presenting the interim budget in parliament earlier. "The operative word is, we will look into it," he said. India, desperate to trim a gaping curren...

Spot gold up for 3rd session; futures rise for 9th day     * Silver at highest since early November     * Dollar index at six-week low  SINGAPORE, Feb 17 - Gold hit a 3-1/2 month peak on Monday as fears over U.S. economic growth and a weaker dollar added to the metals' safe-haven appeal, extending its gains after rising the most in six months last week.  Market sentiment towards gold has been positive since the beginning of the year as weak U.S. and China economic data, and emerging market jitters have taken a toll on global equities, spurring demand for bullion - often seen at times of uncertainty as a safe haven. Gold is up 10 this year percent after a 28 percent drop in 2013, while silver has gained 12 percent.  Investor positioning in gold and technicals seem to suggest the upside could continue. "We think near-term drivers for gold price would be (weak) U.S. macro data and increasing portfolio allocation to gold for diversi...

When Will RIL Rally ?  You can see from the chart above that from end of 2003, Reliance Industries Ltd (CMP: Rs.821.50) rallied till 2007-2008, w hich helped the Indian Markets move up consistently. The Indian markets are  now expecting this kind of rally from the market leader, for the indices to cruise ahead.  The company has a large kitty of funds (the rest is self explanatory). 

Sebi okays new corp governance code [ Editor : The Financial Express on February 13, 2014 writes, "In sweeping changes to the way listed companies are governed in India, regulator Sebi today also asked them to follow an orderly succession planning, put in place whistle- blower policy for employees, have at least one woman director , get public shareholders' nod for related party transactions and carry out performance evaluation of all directors". The question is why there should be reservation for women in the boards of companies, when some of the Female CMDs' of Banks are responsible for mismanagement of the NPAs and large ticket loans ? Why does the government want to FLAUNT a RACIST EMBLEM in the companies' boards, also ? This is the time when the highest court of the land should come to the rescue of men, so that, the discrimination based on GENDER is nipped in the bud. The Article 32 of the Constitution gives an extensive original jurisdiction to the Ho...