Winning Strokes: Think Different

Key benchmark indices logged modest losses in a highly volatile session of trade amid negative global cues. The barometer index, the S&P BSE Sensex, fell 139.61 points or 0.37% at 38,018.31. The Nifty 50 index lost 43.35 points or 0.38% at 11,476.95. The Sensex regained the psychological 38,000 mark after sliding below that level in intraday trade. Global stocks dropped as heightened worries over international trade conflicts curbed investor appetite for riskier assets.

The Sensex fell 139.61 points or 0.37% at 38,018.31, its lowest closing level since 17 August 2018. The index rose 92.69 points, or 0.24% at the day's high of 38,250.61. The index fell 383.50 points, or 1.01% at the day's low of 37,774.42.

The Nifty 50 index fell 43.35 points or 0.38% at 11,476.95, its lowest closing level since 17 August 2018. The index rose 22.35 points, or 0.19% at the day's high of 11,542.65. The index fell 126.45 points, or 1.10% at the day's low of 11,393.85.

The S&P BSE Mid-Cap index fell 0.61%. The S&P BSE Small-Cap index fell 0.52%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1041 shares rose and 1719 shares fell. A total of 170 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Telecom index (down 2.24%), the S&P BSE Consumer Durables index (down 1.85%), the S&P BSE FMCG index (down 1.1%), the S&P BSE Capital Goods index (down 1.02%), the S&P BSE Energy index (down 0.98%), the S&P BSE Realty index (down 0.86%), the S&P BSE Teck index (down 0.6%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.49%), the S&P BSE Industrials index (down 0.48%), the S&P BSE Oil & Gas index (down 0.47%) and the S&P BSE IT index (down 0.37%), underperformed the Sensex. The S&P BSE Finance index (down 0.35%), the S&P BSE Bankex (down 0.07%), the S&P BSE Utilities index (up 0.07%), the S&P BSE Power index (up 0.10%), the S&P BSE Auto index (up 0.28%), the S&P BSE Basic Materials index (up 0.29%), the S&P BSE Healthcare index (up 0.66%) and the S&P BSE Metal index (up 1.13%), outperformed the Sensex.

On the macro front, August survey data signalled a slower rise in business activity across India's service sector, primarily driven by the weakest growth in new work in three months. The seasonally adjusted Nikkei India Services Business Activity Index fell from July's 21-month peak of 54.2 to 51.5 in August, signalling the slowest growth in the current sequence. The data was released during market hours today, 5 September 2018.

Overseas, European stocks were trading lower, as renewed concerns over international trade conflicts hampered investors' appetite for riskier assets. Asian stocks ended lower amid continued pressure in many emerging markets and as trade tensions persisted. US stocks fell yesterday, 4 September 2018, with all major indexes finishing lower, as investors looked ahead to a busy week of trade negotiations and economic data.

Trade tensions were a key focus for investors, with the US reportedly scheduled to restart tense negotiations with Canada that could lead to way to revising the North American Free Trade Agreement. Over the weekend, President Donald Trump threatened to leave Canada out of any new Nafta pact. The president of the country's largest group of labor unions said that Nafta won't work if it doesn't include Canada.

On the macro front, the Institute for Supply Management's manufacturing survey rose to 61.3 in August, its highest level since May 2004. Separately, the IHS Markit reading on August manufacturing came in at 54.7, compared with 55.3 in July.

#Mandhana Industries Ltd (Rs.6.85) as expected is hitting the upper circuits. We can look forward for higher targets in future as the company expands its overseas business. 

#The shares of J P Associates Ltd (Rs.11.50) has made a 52-week low of Rs.10.70, after Rakhesh Jhunjhunwala increased its stake and is now trading near that price only. When Rakesh Jhunjhunwala increased his holding in the company my good friend Ashish Chugh, commented: "What a clarity of thought".  However this clarity of thought is what has taken the share to yearly lows. Now even the media is silent on  this......and will probably forget, if the share continues to make further lows. Hero worshiping and flattering, big guns has been a part of our system. If you remember I had recommended J P Associates Ltd when it was trading near Rs.7 levels in this blog, after that the stock gave around 4 times returns from that price. I also asked all to exit the share when it broke a key support point. 

#The shares of Mro Tech Reality Ltd (Rs.48.05) which was recommended several times in this blog at various prices has been hitting the upper circuits since some time. It is nearing its target of Rs.51, which I mentioned earlier in this blog. 

#The shares of HDIL (Rs.32.85) which  recommended at various prices reached my recent target of Rs.35 (intraday high: Rs.35.60) and naturally profit booking was suggested in the scrip. I had asked all the Premium Members to average the scrip, when it fell near its 52-week lows and exit at around Rs.32-35, which I feel most have done... Those who are still holding the stock are suggested to book profits and take fresh positions only above Rs.37.50.

#I will be giving fresh inputs on TV Vision Ltd (Rs.6) and 3i Infotech Ltd (Rs.3.50), to the Premium Members soon, along with a recommendation of a short term momentum counter. Those who want to know the name of that scrip in advance, should join my Premium Service. Also, due to, tight work schedule and due to my chequered health conditions, this blog may not be updated on daily basis, like I used to do earlier, however, the Premium Members will get inputs on their Whatsapp on regular basis. 

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