Winning Strokes: Think Different

Photo: Triveni Turbines

The market climbed on Friday in line with global stocks as crude prices fell and the rupee extended gains to touch a one-month high. Global shares rose on hopes of a trade agreement between China and the United States. The Sensex ended above the psychologically important 35,000 mark after moving above and below that level in intraday trade. Weakness in IT shares capped gains.

The Sensex rose 579.68 points or 1.68% to settle at 35,011.65, its highest closing level since 16 October 2018. The index rose 758.23 points, or 2.20% at the day's high of 35,190.20. The index rose 217.83 points, or 0.63% at the day's low of 34649.80.

The Nifty 50 index rose 172.55 points or 1.66% to settle at 10,553, its highest closing level since 16 October 2018. The index rose 226.50 points, or 2.18% at the day's high of 10,606.95. The index rose 77.25 points, or 0.74% at the day's low of 10,457.70.

Among secondary barometers, the BSE Mid-Cap index rose 0.78%. The BSE Small-Cap index rose 0.76%.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1611 shares rose and 1054 shares fell. A total of 143 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Auto index (up 4.05%), the S&P BSE Metal index (up 3.04%), the S&P BSE Oil & Gas index (up 2.46%) outperformed the Sensex. The S&P BSE IT index (down 1.32%), the S&P BSE Teck index (down 0.96%), the S&P BSE Healthcare index (down 0.48%) underperformed the Sensex.

Oil sector stocks rose. Among oil exploration and production firms, ONGC (up 1.98%), Oil India (up 2.17%) and Reliance Industries (up 1.64%), edged higher.

Among state-run oil marketing companies, BPCL (up 6.69%) and Indian Oil Corporation (up 4.85%), edged higher.

IT shares declined on a firm rupee. Tech Mahindra (down 4.29%), Wipro (down 3.29%), MindTree (down 2.7%), Hexaware Technologies (down 2.55%), MphasiS (down 2.37%), TCS (down 1.28%), HCL Technologies (down 1.25%) and Infosys (down 0.65%), edged lower. Oracle Financial Services Software (up 0.25%) and Persistent Systems (up 0.87%), edged higher.

Appreciation in rupee dents top line of IT firms as these companies derive most of their revenues in dollar terms.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 72.505, compared with its close of 73.455 during the previous trading session.

In the global commodities markets, Brent for January 2019 settlement was up 9 cents at $72.98 a barrel. The contract had fallen $2.15 a barrel or 2.87% to settle at $72.89 a barrel during the previous trading session.

Overseas, shares in Europe and Asia jumped on Friday on hopes of a trade agreement between China and the United States.

On the US data front, the ISM manufacturing index fell to a six-month low of 57.7%. Respondents cited rising costs as a concern. The IHS Markit final US Manufacturing Purchasing Managers' Index printed at 55.7 for October, up slightly from 55.6 in September. A reading of at least 50 indicates improving conditions.

Nonfarm productivity growth grew at a 2.1% annualized rate in the third quarter. Unit labor costs rose by 1.2%.

The number of newly unemployed Americans seeking jobless benefits fell in the seven days ended 27 October to 212,000.

#The stock of Ishan Dyes & Chemicals Ltd (Rs.53.25) rose to Rs.55, intraday, my 2nd target, where Premium Members were asked to book profits. If you remember the scrip was recommended last week at around Rs.47.

#The stock of Omkar Dyes & Chemicals Ltd was recommended to the Premium Members and also in Twitter, the scrip hit the buyer freeze at Rs.10.35 in the NSE and Rs.10.55 in the BSE. It is a leading player in global tartaric acid market. Wine application owns prominent market share and consistently leads global tartaric acid market. This segment is estimated to grow at CAGR of 4% over the new couple of years, due to rising wine consumption in both advanced and developing countries. In addition, the demand from food & beverages application is projected to rise owing to growing trends for processed food and nutritive beverages in emerging economies of Asia Pacific and Europe, like Japan, China, Australia, and Spain, Italy and France respectively.

#A Buy call was given on the scrip of Reliance Communications Ltd (Rs.14.10) at around Rs.13-13.50, a couple of days back, on the premise that DoT will not have much leeway if it goes for an appeal against the TDSAT ruling. I am looking for targets of Rs.19-21, in the coming few weeks. The scrip made an intraday high of Rs.15.25 in the NSE, yesterday. 

#A Buy call was given in the stock of Housing Development & Infrastructure Ltd (Rs.21.45) at around Rs.20.70 on the news that a brokerage house has given a bullish call on the Real Estate sector. I am expecting the scrip to touch Rs.27-31, in the coming days, where profit booking is suggested.

#A Buy was initiated in the shares of Triveni Turbine Ltd at around Rs.111, for short term targets of Rs.117-135. SL: Rs.96. The board of Triveni Turbine on Thursday approved a proposal for buyback at ₹150 a share for an aggregate amount not exceeding ₹100 crore, it said in a release to the exchanges. The buyback will be on proportionate basis and the resultant equity shares to be bought back with the maximum price is 66.66 lakh shares. The board of directors also noted the intention of the promoters to participate in the proposed buyback.

#My Buy call on Bank_Nifty last week is going fine. Yesterday, it closed at 25701.65 up Twitter have made money in the scrip. I still mantain my target of 27000 going forward. 

#My Buy Call on Nifty_Futures at 10200, has already reached my target of 10400. Yesterday, the Nifty_50 closed at 10,585 up 171.55 points or 1.65%, much above the target price. 

#I will recommend a Momentum Counter next week to the Premium Members. Those who are interested to know the name in advance should either join my Premium Information Service or Trade through my recommended brokerage house, with a minimum portfolio size of Rs.2 lakhs. You can join me in TWITTER, for Free Stock Recommendations. If you can invest at around Rs.3-5 lakhs on profit sharing basis in momentum stocks and in F&O space, then I will assure you solid income, through both sides playing (buy  and sell).

Also, if anyone is interested in investing around Rs.1-2 crore in the Real Estate Sector in Mumbai Metropolis at around Rs.2000-2200 per sq. fit (Bulk Buying), then they are likely to get superb profits going forward. For this you  first have to show me:

#Money in your Account.

#Sign an MoU with me.

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