Winning Strokes:Think Different

Yesterday, morning I came from KEM Hospital, Parel, Bombay after treatment for fever, cough, headache and other allied problems. Hence the blog could not be updated. However, I was there in the markets today and hence decided to put some inputs for the ardent blog readers. The repeated illness and other domestic problems, during the last few months have made me frail and mentally disturbed. 

Anyway, the Sensex ended with small losses while the Nifty ended almost flat amid negative global cues after US President Donald Trump stepped up his tough talk on trade. The barometer index, the S&P BSE Sensex, fell 45.03 points or 0.12% to settle at 38,645.07. The Nifty 50 index rose 3.70 points or 0.03% to settle at 11,680.50.

Broader market clocked decent gains. Among secondary barometers, the BSE Mid-Cap index rose 0.35%. The BSE Small-Cap index rose 0.55%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, rose 1440 shares rose and rose 1236 shares fell. A total of rose 184 shares were unchanged.

Indian export related pharma and IT companies rallied after the rupee depreciated past 71 per dollar, its lowest level against the dollar. I have asking all to buy IT stock since the last few week. My call on Nitesh Estate Ltd (Rs.7.45) was somewhat anchored on this theme....

Among IT shares, MindTree (up 5.92%), Tech Mahindra (up 4.80%), HCL Technologies (up 2.93%), Infosys (up 1.59%), Hexaware Technologies (up 1.28%), Wipro (up 0.94%), MphasiS (up 0.21%) and Oracle Financial Services Software (up 0.14%), edged higher. TCS (down 0.06%) and Persistent Systems (down 0.82%), edged lower.

Among pharmaceutical shares, Dr Reddy's Laboratories (up 4.67%), Lupin (up 4.35%), Cadila Healthcare (up 3.73%), Aurobindo Pharma (up 3.50%), Piramal Enterprises (up 2.39%), Sun Pharmaceutical Industries (up 1.99%), Cipla (up 1.76%), Alkem Laboratories (up 1.75%), GlaxoSmithKline Pharmaceuticals (up 1.20%), Strides Shasun (up 1.18%), Glenmark Pharmaceuticals (up 1.08%), IPCA Laboratories (up 1%) and Divi's Laboratories (up 0.54%), edged higher. Wockhardt fell 0.14%.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 70.91, compared with closing of 70.7350 during the previous trading session.

On macro front, India reported on Friday a fiscal deficit of Rs 5.40 lakh crore for April-July, or 86.5% of the budgeted target for the current fiscal year compared with 92.4% a year earlier. Net tax receipts in the first four months of 2018-2019 fiscal year that ends in March 2019 were Rs 2.93 lakh crore, government data showed.

Overseas, European stocks fell following a downbeat session in Asia after US President Donald Trump stepped up his tough talk on trade. Asia shares declined as Wall Street ended its four-day winning streak in the last session, following a report that US President Donald Trump voiced his support for moving forward with more proposed tariffs.

China reported on Friday that factory activity was higher than expected in August, with the official manufacturing Purchasing Manager's Index (PMI) coming in at 51.3. A reading above 50 indicates expansion, while a reading below that signals contraction. China's official services PMI for August rose to 54.2 for August against 54.0 in July, the National Bureau of Statistics reported.

In US, stocks snapped a four-day winning streak to finish lower Thursday, with the Dow falling back below 26,000. Media reported that Trump said to his aides that he supports going ahead with the imposition of proposed tariffs on an additional $200 billion in Chinese goods. The report did, however, also mention that Trump has not made up his mind on the matter. The White House declined to comment on the report.

On the US data front, initial jobless claims, a barometer of layoffs, rose by 3,000 to 213,000 in the week ended 25 August 2018. Nonetheless, the monthly average of claims fell by 1,500 to 212,250, the lowest level since December 1969.

Consumer spending climbed 0.4% in July, according to a government reading. Incomes rose 0.3%. And the 12-month increase in the PCE index, the Federal Reserve's preferred inflation gauge, rose to 2.3% from 2.2%, marking the highest level since April 2012, suggesting the Fed is likely to maintain its hawkish bias.

#Today's recommended momentum counter  to the Premium Members, Reliance Naval and Engineering Ltd hit the buyer freeze at Rs.16.85. The next target for the scrip is Rs.19. But do you know why it has started to hit the Upper Circuits again? Join Premium Information Services. 

Today's recommended mid cap scrip HDIL moved to Rs.33,10 before closing at Rs.32.75, up around 7.91% in the BSE. The scrip almost doubled from the recently made low, where it was recommended to the Premium Members for accumulation.. If you want to make money on consistent basis, then there is a need to take help from experts or from the professionals in this trade. 

My strongly recommended counter Mandhana Industries Ltd (Rs.6) today hit another buyer freeze. The stock has given a 90 days break out on daily charts. The target of Rs.9.6, remains intact. Stay invested.

The stock of TV Vision Ltd today made a high of Rs.6.39 in the BSE before closing at Rs.6.20, while the stock of Sri Adhikari Brothers Ltd, one of its group companies closed flat at Rs.7.3. The company has come up with a new plan to cut its debts. 

I will be recommending another small cap momentum counter to the Premium Members. Those who are interested to know the name should join the Premium Service, by Sunday. If you want to make good money from this rally, then help from the veterans in the market, would be an added advantage. 

~~With inputs from Capital Market - Live News...