Winning Strokes: Think Different

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In a highly volatile session, the Indian equity markets ended in red ahead of September series F&O expiry and caution ahead of US Federal Reserve decision on interest rate. 

The BSE  Sensex closed at 36,542.27 down 109.79  points or 0.30%, while the Nifty spot ended the day at 11,053.80 down 13.65 or 0.12%. Nifty touched a day's high 11146 and low of 10993 but failed to break 111500-11175 resistance zone. 

FMCG and Tech stocks witnessed biggest losers today while Metal stocks were in limelight. Mid-cap and small cap stocks gained marginally.

IL&FS Ltd's default on debt repayment, rising USD-INR ratio and spike in crude oil price in the international markets, had a negative sentiment in the Indian bourses. US Fed will announce its interest rate decision, tonight. 

Nifty future closed in the negative with the losses of 0.33% at 11050. On option front, maximum Put OI is seen at 11000 followed by 10800 strike while maximum Call OI is at 11200 followed by 11100 strikes. Put writing has been witnessed at 11000 followed by 10950 strikes while Call writing was seen at 11200 and 11100 strikes. 

Option band signifies a wider trading range in between 10850 to 11171 zones. India VIX moved up by 2.44% at 17.08 levels. Higher VIX suggests volatile swings are likely to continue in the market. Built up of Long positions were seen in M& M Finance, UBL, UPL and Hindalco while shorts were seen in Motherson Sumi, Tata Motor, Tata Elxsi and Godrej CP.

In another significant development, the government of India on Wednesday announced hike in customs duty on 19 items, with an aim to curb "non-essential imports" and narrow the current account deficit. This could give legs to the consumer good sector in the coming days.

Nifty spot now has to hold above 11000 zones to witness a bounce back move towards to close above 11080. The Nifty support stands at  10980/10930 levels. 

#The stock of Housing Development & Infrastructure Ltd was recommended to the Premium Members today around Rs.21-22 based on the report that the company had reached a settlement with Bank of India over dues worth Rs.5.11 bn. Its DEBT-EQUITY RATIO(HY) is Lowest at 0.20 times. We can look for short term targets of Rs.26-27 in the coming days. Join the Premium Information Services to stay ahead of others. Also, avail of the ongoing discount scheme available for the Yearly and Life-time subscriptions. 

#The stock of MOIL Ltd was given a buy yesterday in this blog at around Rs.175.95.  The scrip today made an intrday high of Rs.17.50, before closing flat at Rs.173.75. The medium to long term investors are suggested to accumulate the scrip on every decline keeping a SL at Rs.166, for the positive factors mentioned earlier.

#The scrip of Mandhana Industries Ltd today hit the  upper circuit in the BSE at Rs.5.57. The next targets are Rs.7.5-8. Its ROCE(HY) is Highest at 3,983.72%.  If it is able to cross Rs.9.7-10 ranges, we could look for higher targets in the coming days. Accumulate!! 

#In India annually 65 lakh farmers cultivate more than one crore hectares of cotton, the largest in the world in about 10 States mostly under rainfed conditions. An estimated 6 crore people depend on cotton for their living. India’s share in global cotton production is a whopping 25 per cent, a matter of pride for India and the Indian farmer. Indian cotton production received a big boost from 130 lakh bales in 2002 to 370 lakh bales in 2017 with the introduction of Bt cotton. Increased cotton availability helped Indian cotton exports to flourish and reach $8 billion last year.

Moreover, according to a report on Financial Express, 13 September, '18, The domestic demand for textiles is likely to remain robust from end-user segments, supported by a strong rise in private consumption expenditure during the rest of FY19.

#The stock of Reliance Naval and Engineering Ltd hit the Upper Circuits at Rs.12.90 after my POSITIVE write up on Facebook. The company has presented a new revival plan to the lenders and is expecting a positive outcome. 

~~With inputs from Internet....