Winning Strokes: Think Different

Domestic shares inched up, extending gains for fifth day in a row, supported by recent weakness in crude oil prices and strength in local currency. Increase in fund flows from foreign portfolio investors also boosted sentiment. The benchmark indices, which opened on a strong note, settled with small gains after briefly slipping into negative terrain in afternoon trade.

Investors took some profits off the table ahead of a highly anticipated meeting between President Donald Trump and his Chinese counterpart Xi Jinping at the G-20 summit in Argentina, which many hope will help ease escalating trade tensions between the two countries.

The Sensex rose 23.89 points or 0.07% to settle at 36,194.30, its highest closing level since 1 October 2018. The index rose 218.81 points, or 0.60% at the day's high of 36,389.22. The index fell 87.44 points, or 0.24% at the day's low of 36,082.97.

The Nifty 50 index rose 18.05 points or 0.17% to settle at 10,876.75, its highest closing level since 1 October 2018. The index rose 63.75 points, or 0.59% at the day's high of 10,922.45. The index fell 23.60 points, or 0.22% at the day's low of 10,835.10.

Among secondary barometers, the BSE Mid-Cap index rose 0.56%. The BSE Small-Cap index rose 0.52%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was almost even. On BSE, 1300 shares rose and 1303 shares fell. A total of 157 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Realty index (up 1.96%), the S&P BSE Healthcare index (up 1.78%), the S&P BSE IT index (up 1.03%) outperformed the Sensex. The S&P BSE Oil & Gas index (down 0.96%), the S&P BSE Metal index (down 0.51%), the S&P BSE Bankex (down 0.48%) underperformed the Sensex.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 69.77, compared with its close of 69.85 during the previous trading session.

In the global commodities markets, Brent for January 2019 settlement was off 51 cents at $59 a barrel. The contract had risen 75 cents, or 1.28% to settle at $59.51 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.

Meanwhile, Prime Minister Narendra Modi reached Buenos Aires, the capital of Argentina for the 2018 G20 summit, which is scheduled to begin today, 30 November 2018. The theme of the G20 summit is Building Consensus for a Fair and Sustainable Development.

According to reports, PM Modi met with Saudi Arabia Crown Prince Mohammed bin Salman on the sidelines of the G20 summit and they discussed ways to further boost economic, cultural and energy ties. The two sides also held discussions on enhancing investment in technology, renewable energy and food security.

On the sidelines of the two-day 13th G-20 summit, Modi, Trump and Japanese Premier Shinzo Abe will reportedly hold a trilateral meeting amidst China flexing its muscles in the strategic Indo-Pacific region. The trilateral, which would be an expansion of the bilateral meeting between Trump and Abe, is part of the series of meetings the US president would have on the sidelines of the G-20 summit on November 30 and December 1.

The Reserve Bank of India (RBI) on Thursday, 29 November 2018, relaxed rules for non-banking financial companies (NBFCs) to sell or securitise their loan books. In order to encourage non-banking financial companies (NBFCs) to securitise/assign their eligible assets, RBI has been decided to relax the minimum holding period (MHP) requirement for originating NBFCs, in respect of loans of original maturity above 5 years, to receipt of repayment of six monthly instalments or two quarterly instalments (as applicable). However, minimum retention requirement (MRR) for such securitisation/assignment transactions shall be 20% of the book value of the loans being securitised/20% of the cash flows from the assets assigned. The above dispensation shall be applicable to securitisation/assignment transactions carried out during a period of six months from the date of issuance of this circular. Other terms and conditions of the above referred directions remain the same, RBI said.

Overseas, European stocks were trading lower, while Asian markets settled mixed as key leaders congregated for a major event in Argentina. Leaders from around the globe are set to discuss key issues during this two-day G-20 summit, with many investors paying close attention to two leaders in particular: President Donald Trump and China's President Xi Jinping.ss

In Asia, growth in China's services industry slowed for the second straight month in November, an official survey showed. The official non-manufacturing Purchasing Managers' Index (PMI) released on Friday fell to 53.4 from 53.9 in October, but remained well above the 50-point mark that separates growth from contraction.

Growth in China's manufacturing sector stalled for the first time in over two years in November. The official Purchasing Managers' Index (PMI) fell to 50.0 in November from 50.2 in October, data showed on Friday. The 50-point mark is considered neutral territory, indicating no growth in activity or contraction on a monthly basis.

US stocks reversed direction to close lower Thursday as investors' attention shifted to a weekend meeting between President Donald Trump and Chinese President Xi Jinping.

Speaking to the media, Trump said he was "close to doing something with China" but that he wasn't sure he wanted to, citing revenue from tariffs on Chinese imports. Trump on Thursday tweeted that "billions of dollars" are pouring into the US Treasury from tariffs and that there is "a long way to go."

On the US data front, the number of Americans who applied for unemployment benefits last week rose to 234,000, their highest level in six months, according to the Labor Department.

The Commerce Department reported that consumer spending in October rose by 0.6%, while income rose by 0.5%. The same release showed personal-consumption expenditures, the Fed's preferred measure of inflation, right at the central bank's target of 2% year-over-year.

The National Association of Realtors reported that US pending home sales slid 2.6% in October from September, to their lowest level since June 2014.

Reliance Communications Ltd (Rs.14.25) jumped 11.92%. The Supreme Court today ordered the Department of Telecommunications (Union of India) to grant a No-Objection to Reliance Communications for spectrum trading within 7 days. RCom's 100% subsidiary, Reliance Realty, will submit a Corporate Guarantee of Rs 1,400 crore within 2 days. The Supreme Court upheld the earlier order of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), and no Bank Guarantee is now required. The Spectrum trading transaction will now be completed and RCOM will pay-off Ericsson and minority investors of Reliance Infratel (RITL). RCom's asset monetization program thus proceeds as per plans. The scrip was recommended some weeks back in this block and was told foretold what was going to be the outcome of the Supreme Court Judgement.

Omkar Speciality Chemicals Ltd (Rs.13.45) hit the 3rd consecutive buyer freeze yesterday. The scrip was recommended a number of times in this blog and I am sure this scrip, which is thoroughly researched by me, would give stupendous returns going forward. A similar scrip, Global Offshore Services Ltd recommended at around Rs.11-12, made a high of Rs.20.40, almost doubling the holding in just few months.

Those who are holding the shares of Ishan Dyes and Chemicals Ltd  (Rs.55.55) has broken below the stop loss levels and hence those who have made profit in the counter should exit and invest in the next momentum scrip which I will mention in this blog on Monday.. To take the 1st mover advantage, you need to join the Premium Information Service, and take benefits of the discount offer which is valid till 31st December, 2018.

The shares of Uttam Galva Steels Ltd which was recommended at several prices yesterday hit another buyer freeze at Rs.12.10 in the NSE. I am anticipating a similar move in the shares of Uttam Value Steels Ltd (Re.0.10) in the next few months. Hence remain invested or buy the scrip in every decline

The scrip of Tata Steel Ltd (Rs.529.30) was recommended as a buy to the Premium Members at around Rs.522, for short term targets of Rs.541/587. After the acquisition of Bhusan Steel Ltd (which I recommended at around Rs.26.40 some days back on Twitter, CMP: Rs27.15), Tata Steel Ltd has started to show marked improvement in performance.

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