Winning Strokes:Think Different

Domestic stocks logged strong gains on upbeat global cues. The barometer index, the S&P BSE Sensex, gained 442.31 points or 1.16% to settle at 38,694.11. The Nifty 50 index gained 134.85 points or 1.17% to settle at 11,691.95. The Sensex and the Nifty, both, attained record high levels in intraday as well as on closing basis.

Among secondary barometers, the BSE Mid-Cap index rose 1.07%. The BSE Small-Cap index rose 0.70%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1451 shares rose and 1265 shares fell. A total of 218 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Power index (up 2.37%), the S&P BSE Bankex (up 1.69%), the S&P BSE IT index (up 1.54%) outperformed the Sensex. The S&P BSE Realty index (down 0.16%), the S&P BSE Healthcare index (up 0.49%) and the S&P BSE FMCG index (up 0.65%) underperformed the Sensex.

Filatex India rose 9.52%. Filatex India said that the board of directors of the company at its meeting held on 25 August 2018 has considered and approved raising of funds upto an amount of Rs.150 crore by way of issue of equity shares, American Depository Receipts, Global Depository Receipts, convertible bonds / securities through qualified institutional placement/ others. The announcement was made on Saturday, 25 August 2018.

Overseas, Asian and European stocks gained as investors react to comments from US Federal Reserve Chairman Jerome Powell on the US central bank's policy tightening path. This also follows an announcement by China's central bank regarding the yuan's daily midpoint the same day.

In US, the S&P 500 and Nasdaq Composite reached all-time highs on Friday as Netflix shares rose. Sentiment was also boosted by strong earnings and solid economic data being reported earlier last week.

Last Friday, Powell delivered a speech at the Jackson Hole Symposium in Wyoming, where leading central bankers met to discuss the future of monetary policy. He said further, gradual rate hikes were likely in the future, noting the economy is strong and able to withstand tighter monetary policy.

Powell's comments came hours after the People's Bank of China announced that it was tweaking its methodology for the fixing of the yuan's daily midpoint in an effort to stabilize the currency market.

The scrip of Bharat Heavy Electricals Ltd (Rs.79.85) touched Rs.81.30 in the BSE. This is an excellent scrip to be accumulated for the long term.

The stock of TV Vision Ltd (Rs.5.97) has been going down after making a double top at around Rs.6.50. I however, feel that dips should be used as accumulation points for medium to long term benefits. The RSI is at 49.93. The company has come up with new debt resolution plan which is under consideration of the lenders. Recently in ET, Sachin Relekar, Fund Manager-Equity at LIC Mutual Fund said: "Investors putting money in midcap and smallcap funds for longer time frame should have higher tolerance against volatility, as the domestic market has many macro headwinds lying in wait". 

The scrip of Kwality Ltd has hit Lower Circuit at Rs.24.3 in the NSE. I had earlier mentioned in this blog to book some profits due to the presence of strong resistance zones between Rs.23-25. Hope most of you have done the same. 

The scrip of Manappuram  Finance Ltd (Rs.101.25) which was recommended around Rs.13 in 2013, gave around 9 (nine) times return (in 5 years) to the patient investors. The stock earlier made a high of Rs.130.45 in the NSE. This is what you get in the long term, if your choice of scrip is correct, coupled with good future visibility. Keep holding with a SL at Rs.92.

The stock of MBL Infrastructure Ltd was recommended to the Premium Members as a buy for the short term with a target of Rs.24 and SL of Rs.17. The scrip made a high of Rs.20.80 in the NSE.  

I will be recommending another short term Small Cap stock with satisfactory fundamentals to the Premium Group members, this week. The name of the share along with resistance points, stop losses and targets will be delivered in their Whatsapp address. Those who want to know the name in advance, should join the Premium Service. Also, due to repeated fevers and on account of too much work on other verticals, I am not able to update this blog on regular basis. Hope the things will get streamlined in future, by the grace of God, with my health condition improving a bit. 

~~with inputs from Capital Market Live News....