Winning Strokes: Think Different

Domestic stocks settled with modest gains following recent weakness in crude oil prices. The barometer index, the S&P BSE Sensex, rose 118.55 points or 0.34% to settle at 35,260.54. The Nifty 50 index rose 40.40 points or 0.38% to settle at 10,616.70.

Among secondary barometers, the BSE Mid-Cap index rose 0.74% to 14,992.48. The BSE Small-Cap index was flat at 14,548.04.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1099 shares rose and 1497 shares fell. A total of 139 shares were unchanged.

Yes Bank lost 7.42%. The bank informed that Ashok Chawla, non-executive independent part-time chairman, has tendered his resignation from the Bank's Board, with immediate effect, mentioning that during the current transition period, the Bank would need a Chairman who could devote more time and attention. The bank shall in due course announce the appointment of a Chairman, post RBI's approval. The announcement was made after market hours yesterday, 14 November 2018.

With the merger of Vodafone India with Idea Cellular, Grasim Industries' shareholding in the merged entity, Vodafone Idea (VIL) now stands at 11.55%. Consequently, VIL ceased to be an ‘Associate' of the company with effect from 31 August 2018. Accordingly, the share in profit after tax of VIL has not been consolidated with effect from 31 August 2018. The exceptional item of Rs.2003 crore represents the difference between book value and fair value of VIL as on 30 August 2018. This has been charged to the Profit and Loss Account, consequent to VIL ceasing to be an ‘Associate'.

In the global commodities markets, Brent for January 2019 settlement was off 4 cents at $66.08 a barrel. The contract rose 65 cents, or 0.99% to settle at $66.12 a barrel during the previous trading session.

India imports majority of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.

Overseas, most European and Asian stock shares edged higher on Thursday as investors digest the latest news on Brexit. British Prime Minister Theresa May said she had obtained enough support for her proposed Brexit deal to move forward. The uncertainty surrounding a deal had earlier weighed on risk sentiment.

US stocks closed lower Wednesday, with the Dow Jones Industrial Average logging its longest losing streak in three months, as blue-chip Apple Inc. flirted with bear-market territory.

Meanwhile, US Federal Reserve Chairman Jerome Powell on Wednesday expressed confidence in US economic strength and said that markets will have to get used to the idea that the central bank could raise rates at any time starting in 2019.

On the US data front, the Labor Department said the consumer-price index rose by 0.3%, while core CPI, excluding volatile food and energy prices, rose 0.2%.

#The shares of Global Offshore Services Ltd recommended in this blog around Rs.12. yesterday touched Rs.20.04 in the BSE last month. Congratulations to all those who made money in this scrip. 

#The shares of Omkar Speciality Chemicals Ltd yesterday rose to Rs.12.9, before closing flat at Rs.12.33. Omkar Specialty Chemicals Ltd is a Chemical Company in Mumbai, India, engaged in the production of Specialty Chemicals and Pharma Intermediates.

#The shares of Jet Airways Ltd (Rs.320.95) unexpectedly rose to Rs.334.9 based on the market rumour that Tata Group is going to take-over the company. But then with a debt of around Rs.12000 crore in its books and Tata group being already leveraged due its bet on Bhusan Steel Ltd bet, I have doubts about the turnaround of the Jet Airways Ltd, at least in the near future. I still maintain a sell on the scrip and feel that it would touch Rs.210/189 in the short term. Meanwhile, both the companies have brushed aside the media rantings, as "speculative". 

#I have recommended Uttam Value Steel Ltd (Re.0.15) to the punters who are subscribers to my Premium Information Service. The blog readers who are looking for a long term steel turnaround story can look at the stock of Uttam Value Steels Ltd, which was earlier known as Lloyd Steel Ltd. Uttam Value Steels reported operational revenue of Rs.2,704.2 crore for 2017-18, with a net loss of Rs.467 crore. It has a hot-rolled production capacity of 1 MT in Wardha. It buys pig iron from Uttam Galva Metallics, which is privately owned by the group. Now to set up a 1 MT steel plant, at least Rs.5000-6000 crore is needed. On Money Control BV of Uttam Value is shown as -Rs.1.17. It has Re.1 has face value. 

But 1 MT steel plant having a market cap of only Rs.125 crore is salivating, especially when ET reported on October 12 that JSW Steel, Liberty House, Aion Capital, Phoenix ARC and SSG Capital had submitted expressions of interest (EoIs) for the two subsidiaries of Uttam Galva Steels that owed Rs.3,200 crore and Rs.2,200 crore, respectively, to lenders. 

The ET on 31st October further wrote that: Prudent ARC, Asset Reconstruction Company (India) Limited (Arcil), a consortium led by SSG Capital Management and another consortium led by New Zone Intertrade FZE have joined the list of eligible resolution applicants for debt-ridden Uttam Value Steels and Uttam Galva Metallics. To add to the positives about Uttam Value Steels Ltd (Re.0.19 in the BSE) Live Mint reported on 1 November, that The State Bank of India had withdrawn an insolvency petition against this Mumbai-based steel company. The state-run lender’s move came after ArcelorMittal paid ₹7,469 crore to clear outstanding debts of Uttam Galva and KSS Petron, two companies in which Lakshmi Niwas Mittal had been a promoter. 

It is worth mentioning that On 24 March, Uttam Galva Steels Ltd (Rs.11.86) informed the exchanges it had received approvals from BSE and the National Stock Exchange to declassify the world’s largest steelmaker ArcelorMittal as a promoter of the company. ArcelorMittal had held a 29.1% stake since 2009 in the company.This leaves us to guess whether ArcelorMittal would be buying out the stake in Uttam Value Steel Ltd or not as the commodity cycle has started to move up with a spurt in the Crude Oil prices. The risk taking investors or punters can buy the scrip of Uttam Value Steels Ltd in the NSE aroud Re.0.15 and keep holding, for targets above Re.1, in the next couple of years.

#Yesterday, Bank Nifty gained 0.5% to closed near 25950 level due to buying witnessed in selective heavyweights. I still maintain the target of 27000 in the short term.

#Nifty opened positive but failed to cross the level of 10650. Nifty has been consolidating around 10450 to 10650 zones from last eight trading sessions. Nifty now has to hold above 10550 zone to further continue its upmove towards 10650/10750 marks. On the downside support exists at 10500 then 10450 levels.

#There is no stopping of the upmove of the share Sunil High Tech Ltd (Rs.2.83), which was recommended to the Punters at around 1.15, on Twitter. The scrip gave superb returns to the investors and has been hitting repeated circuits after that.....

#If you are genuinely interested in making money from the markets then bring in a fund of around Rs.3-5 lakhs, I will help you cover all your losses, through decent trading. If you can generate more funds, then profits would be much higher as money begets money. There will NO MARGIN TRADING -- only delivery based investments and occasional option trading.