Winning Strokes

The stock of PC Jeweller Ltd (Rs.93.70), today made a high of Rs.97.55 in the NSE. The 1st target has been reached and I am sure most of the Premium Members booked profit in the counter. However, the fact is that the gold prices could rise in the international market in the short term and hence unless Rs.86 is breached on the downside, the long term investors can keep holding the counter for the next targets of Rs.111-112. 

Recently, there was media reports that Rakesh Jhunjhunwala has increased his stake in J P Associates Ltd (Rs.15.15) to 1.98%, raising lot of eyebrows. It is because I feel may be RJ is thinking that in 2019, the BSP might have a better standing than of today.  Its CMD, Mr.Manoj Gaur has high political connections and it is unlikely that this company is going to fade from the Indian map. 

This company basked in limelight throughout the last decade, building India’s first F1 racing tracks, laying out one of the country’s showcase expressways, launching India’s biggest housing project and rapidly diversifying into multitude of business areas, where it quickly captured large market shares. The company continued to grow during 2004-07 period till the global financial crisis, knocked down the essential pillars of the Indian economy. 

The company piled up debts and the stock Stock of JP Associates Ltd fell from its peak price level of Rs.340 (adjusted basis) in April 2008 to around Rs.6 in 2016. I remember giving a buy at around Rs.8 in this blog, a couple of years back; after which the scrip traveled near Rs.30, giving ~four fold returns to the patient investors. 

There is a news today that, FMO has introduced a bill to further amend the BIA, therefore, till the contours of that fiat comes out in the public domain, I would prefer to have a range play between Rs.13-21.

Sintex Industries Ltd went through selling pressure today and closed at Rs.13.20, even though the company is expected to get benefited due to the duties imposed on imported apparel. The company came out with good set of numbers for the Q1FY19, and I am sure over the medium term, the patient investors would make money in this counter. 

The stock of IFCI Ltd (Rs.15.55) was recommended to the Premium Members this week on the hope that it  is likely to recover ~Rs 2,000 crore from NPA resolution in FY'19. Also, the company is planning to raise around Rs.3000 crore through debt, to fund its new businesses. This Infrastructure lender recently recovered Rs.280.30 crore and has been allotted over 5.79 lakh equity shares of debt-ridden Bhushan Steel (BSL), which has been acquired by Tata Steel, under the insolvency process. The value of 5.79 lakh of Bhusan Steel Ltd at the CMP of Rs.24.05 comes to around Rs.139 lakhs. You can buy, at the CMP  of Rs.15.55, for a short term target of Rs.19.

The stock of BPL Ltd (Rs.48) was recommended today as the company would be a major beneficiary of the GST cut on some of the electric and electronics items (or say consumer good). The company has a major presence in the rural market.  I am looking for a short term target of Rs.53, in the coming days. 

The scrips of Renuka Sugars Ltd (Rs.10.30) and Dwarikesh Sugar Industries Ltd (Rs.14.50) were given a buy to the Premium Members today. In fact a buy was initiated for all the ethanol manufactures, after positive report oozed out from the government regarding GST. With the crude oil on the boil, I am looking forward for short term targets of Rs.13-15 for Shree Renuka Sugars Ltd and Rs.17 for the latter. 

Today, the S&P BSE Mid-Cap index rose 1.29%. The S&P BSE Small-Cap index rose 0.93%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,529 shares rose and 1,061 shares fell. A total of 186 shares were unchanged.

I have come out with a Cheap Lifetime Subscription Package (for 30 years) of my information Service, both for the Cash and the F&O market. Those who are interested can send in a mail at: suman2005s@rediffmail.com. The price of this offer is going to rise post Durga Pooja/Dusshera in 2018. This is much better (9 times cheaper) than what you pay for one year. 

Also, I am looking forward for some ace investors, who is ready to have a JV with me on the share market investments. The said angel investor should have a minimum investment capacity of Rs.5-10 lakhs, with around Rs.5 lakhs as buffer, to average the scrip/s in case market gives opportunity. There will be no trading in the counters, only investment based strategy would be employed. The time period of holding would be 2-3 years. The sharing ratio would be 60:40, between you and me. 

~~with inputs from Capital Market Live News