Market Mantra

Buy the Shares of Indo Count Industries Ltd at the CMP of Rs.55.45 for short and medium-term targets of Rs.91/96/127/141. SL: Rs.56. It is likely to give decent returns over a period, as INR depreciation Vs USD is going to have a good effect on its balance sheet. The company makes, bed sheets, pillow covers, etc which are sold in the United States through retailers such as Wal-Mart and Bed Bath & Beyond. While the majority (65%) of Indo Count Industries Ltd’s business comes from retailers in the US, it also exports to 54 countries and has taken baby steps in selling products under its own brand -- a bold step for a company that was set up only in 1991 as a yarn maker and entered the home textile business in 2006. A strong US dollar has already the input costs for the US manufacturers -- this is likely to boost US imports in sectors such as textiles, steel, aluminium etc. However, Trump administration recently imposed strong Tariffs on steel and aluminum imports as well as a range of Chinese goods. This gives the big shot Indian textile players an edge.

Omkar Speciality Chemicals Ltd (Rs.22.80) as expected bounced from its support and has now hit the 3rd consecutive buyer freeze. Keep accumulating on dips for targets of Rs.26/31

Lasa Supergenerics Ltd (Rs.33.15) also hit the buyer freeze in the morning trade at Rs.36.55. But the scrip is it critical level as mentioned earlier to the Premium Members. Hence, those who have taken position around Rs.22-24 levels, where it was recommended should book profits and wait to see if it is able to hold the immediate support zone. However long-term investors can hold with a SL at Rs.31. 

Nifty is now trading at 10,661.80 down 10.45 points. Hence, all the short term targets (10742/10675) in Nifty Futures given to the Premium Members have been achieved.

To know what should be the strategy now, you should join the Premium Information Service. The discounts on the Yearly and Life Time Premium Membership has ended on 31st December 2018. Hence, those who will be subscribing now will have to do that on the normal subscription rates.