Winning Strokes

Key benchmark indices logged small gains on first trading day of the week after languishing in negative zone for most part of the trading session. The barometer index, the S&P BSE Sensex, rose 45.20 points or 0.13% to settle at 33,724.44. The Nifty 50 index rose 9.85 points or 0.09% to settle at 10,399.55. Stocks logged gains for eight day in row today, 27 November 2017. The Sensex and the Nifty, both, settled at their highest closing levels in three weeks.

Domestic stocks edged lower in early trade on negative Asian stocks. Stocks hovered in negative zone in morning trade. Key benchmark indices gyrated in a small range amid negative bias in mid-morning trade. Equities extended fall and hit fresh intraday low in early afternoon trade. Stocks hovered near the day's low in afternoon trade. Stocks cut losses in mid-afternoon trade. Indices turned positive in late trade.

The Sensex rose 45.20 points or 0.13% to settle at 33,724.44, its highest closing level since 6 November 2017. The index gained 65.93 points or 0.2% at the day's high of 33,745.17. The index fell 138.78 points or 0.41% at the day's low of 33,540.46.

The Nifty 50 index rose 9.85 points or 0.09% to settle at 10,399.55, its highest closing level since 6 November 2017 . The index gained 17.45 points or 0.17% at the day's high of 10,407.15. The index fell 49.50 points or 0.48% at the day's low of 10,340.20.

The S&P BSE Mid-Cap index rose 0.52%. The S&P BSE Small-Cap index rose 0.77%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,565 shares rose and 1,131 shares fell. A total of 184 shares were unchanged.

The IT major Infosys fell 1.23% to Rs 997.50. The company after market hours today, 27 November 2017, announced a partnership with Hewlett Packard Enterprise (HPE) to offer a joint end-to-end mainframe modernization solution, which will provide global enterprise customers robust hardware and advanced software architecture.

Most power generation stocks edged higher. Adani Power (up 3.25%), NTPC (up 3.13%), Reliance Infrastructure (up 3.07%), GMR Infrastructure (up 2.15%), Torrent Power (up 2.02%), Reliance Power (up 1.96%), CESC (up 0.79%) and NHPC (up 0.19%), edged higher. JSW Energy (down 0.18%) and Jaiprakash Power Ventures (down 1.12%), edged lower.

Tata Power rose 1.55% to Rs 95.25. Tata Power announced after market hours today, 27 November 2017, that its wholly-owned subsidiary, Tata Power Solar Systems, India's largest integrated solar company, commissioned a rooftop project in India - a solar carport on the rooftop of the sprawling 70,000 square meter Unity One mall, a Unity Group endeavor in Rohini. The unique rooftop carport is estimated to set off 438 Tons of carbon emission annually. Tata Power Solar won the bid in the open tender process fielded by Delhi Metro Rail Corporation (DMRC) for multi-level car parking. The project has been envisaged under net-metering scheme enabling self -reliance in the energy consumption and production cycle. It enables the mall to receive real value of the energy produced by earning on the unused and excess solar electricity produced. It also cuts down the need to install a second meter or an expensive battery storage system as it is directly connected to the local power grid.

The Sensex has risen 964 points or 2.94% in eight sessions from its close of 32,760.44 on 15 November 2017. The Sensex has risen 511.31 points or 1.54% in November so far (till 27 November 2017). The Sensex has risen 7,097.98 points or 26.66% in the calendar year 2017 so far (till 27 November 2017). From a 52-week low of 25,717.93 hit on 21 November 2016, the barometer index has risen 7,970.70 points or 30.95%. The index has fallen 141.51 points or 0.42% from its record high of 33,865.95 hit on 7 November 2017.

Meanwhile, global ratings agency Standard & Poor's Ratings Services affirmed its 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on the Republic of India. The outlook remains stable. The ratings on India reflect the country's sound external profile and improved monetary credibility. The announcement was made after market hours on Friday, 24 November 2017.

Asian stocks ended lower weighed by weakness in the Chinese and South Korean stocks. A drop in the Chinese industrial profits data also weighed down on the sentiment. China's industrial profits grew 25.1% in October compared to the year before, against a 27.7% rise seen in September.

The US investors are gearing up for a busy week, with President Trump scheduled to address Senate Republicans at their weekly luncheon Tuesday on taxes ahead of a potential vote on tax reform. Federal Reserve Chair Janet Yellen testifies before the congressional Joint Economic Committee in Washington, and the confirmation hearing for her nominated successor, Jerome Powell, begins.

On the data front, a survey of purchasing managers showed that businesses grew in November at the slowest pace in four months. The Markit flash manufacturing PMI fell to 53.8 from 54.6, while the flash services PMI fell to 54.3 from 54.6. A reading of 50 or better indicates improving conditions.

Today Jai Balaji Industries Ltd hit the upper circuit at  Rs.14.35. With the steel cycle turnaround in the offing and the government is coming out with sops for the scrap importers, most of the 2nd rung steel counters are expected to do well in the coming days. The scrip could make a new 52--week high in the days ahead.

A buy on COPPER suggested at around Rs.445.20, SL below Rs.442.50,for an intraday  Target of Rs.449.00. Copper touched Rs.551.700 today.

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Suzlon Energy Ltd (Rs.15) which was recommended to the clients of my associated brokerage house: BMA Wealth Creators Ltd, at around Rs.13.50-14 closed near the day's high of Rs.15.10. If the crude oil prices continue to boil in the international markets, then the stock of Suzlon Energy Ltd could make a new 52-week high in the coming days. 

The consumer electronics major Videocon Industries Ltd hit another buyer freeze at Rs.13.40 in the NSE. The company has  two large oil blocks on the verge of production in Indonesia and Brazil - the Indonesian block is likely to start production late next year or in early 2019 and the Brazilian field is expected to produce its first oil in 2020. Videocon Industries had consolidated outstanding debts of Rs 44,000 crore evenly divided between its domestic and overseas businesses, Dhoot said.  The company reported a consolidated gross debt of Rs 47,500 crore at the end of December 2015, the latest year for which the company’s audited financials are available. The risk taking investors should therefore accumulate the scrip in every decline, keeping a SL at Rs.11. 

Gitanjali Gems Ltd (Rs.93.15) which was recommended around Rs.66-67, recently, made a high of Rs.100 in the NSE today. It is pertinent to mention here that the scrip of Gitanjali Gems Ltd was recommended around Rs.38.75 on 15 October, 2015 on this blog.

~~ with inputs from Capital Market - Live News.