Winning Strokes: Think Different

The dark clouds have been hovering over the markets since the last few days, due to the reasons mentioned in my last post. Today the BSE closed at 36,227.14 down 97.03 or 0.27% while the NSE ended the day at 10,930.45 down 47.10 points or 0.43%. 

Metal, Small cap, Auto and Realty stocks were biggest draggers today (Index declined 5% each). Nifty has been treading a southward path since the last few week and this month the decline was a whooping 7% decline, worst since the Lehman Brothers' crash in 2008. IL&FS's debt payment  crisis, and Brent crude's price hike are some of the major reasons for markets to go in for such sharp cuts. 

For Nifty 500 stocks, the advance to decline ratio was at 1:4. As expected Mid-caps and select NBFC stocks were hammered today. Infibeam Avenues nosedived by ~70%, though the company clarified that it has given interest free unsecured loan to its subsidiary NSI lnfinium Global Pvt Ltd. It closed to a 2-year low of Rs.58 ahead of AGM (tomorrow) . Yes Bank shed 10% to close 2-year low of Rs.184. Media reports suggest that Madhu Kapoor, a prominent share holder of YES Bank sold 0.04% of the stake, in the open market on September 21. 

Nifty Futures: Brokerage Outlook: Nifty future closed negative with the losses of 0.59% at 10964. Option data is scattered at all the strikes as it's the beginning of the October Series. On option front, maximum Put OI is at 11000 followed by 10800 strike while maximum Call OI is at 11500 followed by 11200 strikes. We have seen Put writing at 11000 followed by 10800 strikes while Call writing is seen at 11300 then 11200 strike. Option band signifies a wider trading range in between 10800 to 11171 zones. India VIX moved up by 0.44% at 17 levels. It has spiked by 9.36% in this week while up by 35% in this month. Rising volatility suggests that bears are holding the tight grip on the market. Built up Long positions were seen in Axis Bank, Britannia, HDFC Bank and Wipro while Shorts were seen in Just Dial, IGL, Jubilant Food, Hero Moto, KPIT, IbullhsgFin and SAIL

#A Sell call was given on Jindal Steel and Power Ltd to the Premium Members on their Whatsapps, at around Rs.223.6 for short term targets of Rs.199/171. The scrip made an intrday low of Rs.186, before closing at Rs.196.15. The 1st target has already been achieved on today. 

#A sell call was given on the stock of Max Financial Services Ltd to the Premium Members on their Whatsapps, at around Rs.419.05 with a SL at Rs.444. The scrip made an intrday low of Rs.401.55 before closing at Rs.409.45.

#Nifty was given a sell yesterday on this blog. Today it made further low of 10930.45. Till it remains below 11050-11080 zones, overall weakness could continue towards 10850 then 10750-10700 levels. The Nifty could even drift to 9916, before Durga Pooja. Hence, you can build up short positions. I have already suggested all to hold on to your buy decisions till more clarity arrives on the NBFC issue. Or forget delivery based cash market for the time being, play only in the F&O segment. I hope those who regularly follow this blog, must have made money through shorting of Nifty Futures. 

#The stocks of Bombay based real estate companies like HDIL tanked further to Rs.20.80 in the BSE, after a report showed Greater Mumbai to be slipping to the 4th Position behind Surat of Gujarat. I had already suggested an exit from the scrip, in the my last post. Stay away from all the real estate counters, especially the Mumbai based ones as I am expecting a crash in the Real Estate market in Metropolis.

#The scrip of J P Associates Ltd (Rs.6.60) today perhaps made an all time low of Rs.6.45 in both the BSE and the NSE. This is a FREE FALL from Rakhesh Jhunjhunwala's buy price of around Rs.14. This is the 2nd time RJ entered the counter. His earlier buy price should be a bit higher, when he first entered the stock. Now, those who talked of his "Clarity of Thought" in terms of stock picking stocks, are now silent. The electronic media tends to go mum when such events occur. They normally try to bring him in front of camera, when his scrip performs and earn TRP. Otherwise, the work of these business channels are to SHIELD him and hide his grave mistakes. This clandestine nexus between the Business Channels and their PET marketmen/traders is not restricted to RJ alone, but many of his contemporaries including S P Tulsian, Ashwani Gujral, and so on.....
If you remember, I had suggested an exit from the stock when it broke Rs.12-14 zone on the downside. When RJ increased his stake, I was surprised because, it was I who brought the stock to limelight at around Rs.7, when everywhere, I was hearing a sell call. The stock went on to cross Rs.27 making a new 52-week high.  I thought RJ must be having some information which I do not have, but at the end he turned out to be........

#The stock of Monnet Ispat & Energy Ltd which was recommended to the Premium Members at around Rs.11-12 today hit the upper circuit at Rs.34.35 in the BSE. The stock almost TRIPLED in the last few months. Congratulations to those who are still holding the stock. 

#I will be recommending two Buy/Sell calls on Monday in the F&O Segment. If anyone wants to know their names, they should join the Premium Services by Sunday.