Tit - bits #Tomorrow the market is expected to open gap up, but we may have corrections at the end if the closing. The key support for Nifty comes at around 12,182, followed by 12,120. The important Nifty resistance levels to watch out for are 12,285/12,323. This is a sell on rise market. #You can short the banking stocks in the opening trade and then book profits at the end if the day. # There was not a single stock that saw long unwinding on December 27. In Cadila Ltd (Rs.257.70) and Yes Bank (Rs.45.30), there was short built up, while we could see some actions in Page Industries Ltd (Rs.23,600) and MRF Ltd (Rs. 66,845). # Though through OT, the short term interest rates might cool down a bit, but it is doubtful whether it will help increase the credit uptake. There is another problem, with inflation monster popping its head up, too much liquidity in the system might precipitate its (inflation's) unabated upward march. It therefore, rema...
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Tit - bits #Around 11.43 am in the morning, the BSE Sensex was seen trading at 41,424.47 up 260.71 points (+0.63%) while the Nifty was 12,205.85 up 79.30 points (+0.65%). The markets are up today basically on the news that the RBI will go for OMO on Monday. However, I feel this is a dead cat bounce and if 12100 - 12010 is broken on the downside we could see the Nifty sliding towards 9700. Hence, I would suggest you to sell on rise. #Since the RBI is tentative to do OT on Monday, you can take some positions in Bank Shares and sell them on Monday.
Tit - bits The Indian Stock Markets as expected are in red today. At around 11.30 am in the morning the BSE Sensex was seen trading at 41,387.46 down 71.5 points (-0.18%) and Nifty was at 12,192.55 down 22.15 points (-0.18%). Nifty is expected to go down further unless it crosses 12,225 on the upside. Hence, I'm giving one more sell call. #Sell the shares of Punjab National Bank Ltd at the CMP of Rs.63.30 for short term targets of Rs.58.5/58. SL: Rs.65.70.
Tit - bits #Sell the shares of Cadila Healthcare Ltd in the Photo : CNN Money F&O market at around Rs.259, for short term targets of Rs.227/220. SL: Rs.264. The scrip got charged up after this pharma major, viz Cadila Healthcare recently said that its topical manufacturing facility in Gujarat has cleared US drug regulator's inspection. It was shouted up by a number of TV men. Now it is the Bear - time for the scrip. #Sell the shares of BPCL corresponding to the spot price of Rs. 477.80, for short term targets of Rs.441/412. SL: Rs.489. ) A media report citing sources claimed that divestment in the company may be pushed beyond March 31, 2020, says the ET. Investors and traders should take this, as a extreme caution, as the domestic stock markets could see a "Rolling Bear Market" that may push the S&P Nifty50 down to as much as 12/15% from the current levels; if this actually happens. If you remember, in my earlier write up, I h...
Tit - bits #The indices are trading down today. The markets looks tired and ready for at least 200 points Nifty correction. The BSE Sensex is now at 41,558.51 down 97.92 points (-0.20%) while the Nifty is at 12,240.15 down 22.45 points (-0.18%). I'm expecting both the indices to come down if the Nifty spot breaks: 12010/11830 on the downside. This means the markets are not taking positive triggers from the recent OMO announcement by the RBI. In my last write up, I had expressed my apprehensions, regarding a boost of loan offtake due to Operation Twist. I had mentioned in that article that the debt heavy corporate may shun, from diving into further debt, even if the interest rate of short term loans are kept low. Also, the result of the Jharkhand elections, after the Maharashtra episode has shaken the pillars of the ruling BJP. The spectre of a Mid Term Lok Sabha election and a defeat of this "Nazi" branded BJP, known for their ...
Operation Twist: Advantage Banks Operation Twist (OT) is a monetary policy Photo: Cartoon Stock operation of the US Federal Reserve where it simultaneously purchases and sales of bonds. It was first carried out in 1961 as a way to strengthen the U.S. dollar and stimulate cash flow into the economy. Operation Twist gives a movement of the yield curve when central banks simultaneously buy and sell securities of short-term and long-term tenor. It’s a tool which is often used by the US Federal Reserve. The benefits of businesses and individuals having access to low-interest-rate loans include an increase in economic spending activities. But, whether the risk averse and debt laden corporates, will go for loan spree, is still a matter of conjecture. Anyway, due to RBI’s OMO (OT) announcement the systemic liquidity is going to increase and the bond market should react positively. The catch point is: if liquidity goes up, yields will come down....
Tit - bits # Texmaco Rail and Engineering Ltd is consolidating at the current levels. It would be better if you book some profits, if you have averaged when its price fell and hold the rest with a SL of Rs.32. The stock crossed Rs.35 on the upside yesterday. #We have bought some shares of Arvind Ltd at around the CMP Rs.39.85 on the hopes of the revival of the textile sector. If you buy, then please do keep a SL at Rs.37. #The shares of United Bank of India seems to be in for a long consolidation phase. But the question is why is the scrip not able to cross Rs.10 even after such good (last) quarterly results? Are we missing something that the marker perhaps knows? Keep a SL at Rs.8.60. Don't add further. #The stock of 63 Moons Technologies Ltd (Rs.103.05) today tried out to break out of the current ranges and touched Rs.105.90. It needs to close above Rs.107 to give a decisive break out. Keep a SL at Rs.101.60.
Tit - bits #The shares of Texmaco Rail and Engineering Ltd (Rs.30.70) made a 52 - week low of Rs.29.40 today, on the news that the shares of the company has got delisted from Calcutta Stock Exchange (CSE) on 12 December, 2019. This is crazy and stupid ... 😂😂 This is is actually good for the company as CSE is now almost defunct. What is the use of paying listing fees then? The money could be saved and used in business. The company's shares would continue to trade in NSE and BSE -- that is enough for we shareholders. It is India's biggest Wagon Maker and it would be pity for us, if we lose money in such a scrip. Today, I averaged and brought down my buy price and for some of my clients. The demand for wagons are increasing everyday. That sector fundamentals are intact can be seen when we look at the share of India's 2nd biggest Railway Wagons Maker, viz. Titagarh Wagons (Rs.46.20). These are life time opportunities to buy suc...
Tit - bits #The bounce back which commenced on Wednesday post forming of a Bullish Harami Candlestick Pattern, is likely to provide further ammunition to the bulls in the coming days. Keep accumulating good stock on dips. This week the rally is expected to be broad-based. Meanwhile, foreign institutional investors (FIIs) bought shares worth Rs.115.7 crore, while domestic institutional investors (DIIs), too, bought shares of worth Rs.384.92 crore in the Indian equity market on December 13, provisional data available on the NSE showed. Photo : India Today #The Indian Railway related shares are expected to outperform in the run up to the Union and Railway Budget which in all likelihood is tentative on February 1, 2020. According to a Gujarat based weekly, the NDA goverment has invited bids for 450 trains, which more work for wagon manufacturers. This news is therefore music for the shareholders of Tiagarh Wagons (Rs.46.20) and Texmaco Rail and...
Tit - bits #The scrip of United Bank of India Ltd (Rs.8.70) is consolidating around the current ranges. It needs to close above Rs.8.80 for the beginning of the next level of upmove. It is a safe scrip and should give decent returns over a period of 3/6 months. #Buy the shares of Texmaco Rail & Engineering Ltd at Rs. 34.50, T: Rs.39/41, SL: Rs.31. Texmaco’s wagon vertical ended Q1FY20 with an order book of Rs 11.7 bn (Rs 12.1 bn at FY19-end). Traction in private sector wagon ordering sustained with the company winning Rs 1.1 bn worth of orders (Rs 5.6 bn in FY19). Its peer group company Titagarh Wagons Ltd (Rs.46.95), shot up by more than 9% today. With Railway budget in the offing, the Railway related stocks are likely to gain momentum soon. #The stock of 63 Moons Technologies Ltd (Rs.102.30) has a great future ahead as the company has got lot of court ruling in its favour. I'm looking for a price target of Rs.131/137 in the coming. Keep accumulat...
A Big Boom is likely in Algorithm Trading Market in the next 5 years Photo : Business Standard As the demand for new innovative solutions increases and more startups arise in the space, a spurt in demand for the Algorithm Trading Software is expected during the period 2019 to 2024. Types: Forex Algorithm Trading Stock Algorithm Trading Fund Algorithm Trading Bond Algorithm Trading Cryptographic Algorithm Trading The global algorithmic trading market is expected to register a CAGR of 11% in the forecast period (2019 - 2024). Some of the Key Players: Thomson Reuters 63 Moons Technologies Tata Consultancy Service Symphony Fintech Argo SE Kuberre Systems Virtu Financial Highlights: # The major growth drivers are: Rising demand for fast, reliable, and effective order execution, with a view to reduce transactional costs. Institutional investors and big brokerage houses have been using algorithmic trading ...
Tit - bits #Buy the shares of United Bank of Ltd at Photo : Banyan Hill Publishing around Rs.8.50, for short term targets of Rs.11/11.50. Recently, the PSBs: United Bank of India and Oriental Bank of Commerce have been merged with Punjab National Bank, making the entity the second largest public sector bank (PSB) -- this gives it a considerable scale and value. It is a safe investment in this Yo -Yo markets. # Buy the shares of 63 Moons Technologies Ltd (Financial Technologies Ltd) at around Rs. 102.30/104, for short term targets of Rs.127/131. We are getting all the positive news about the company since the last few months. With current dispensation in Delhi after the former FM, P Chidambaram & Co, who actually nailed the rumored BJP man Jiggesh Shah, I feel the scrip of 63 Moons Technologies Ltd would now, move up. In fact , 63 Moons technologies filed a legal suit on June 12 against the former finance minister P Chidambaram and two ...
Tit - bits Photo : Stocks Vibe #Today the Sensex closed at 40,239.88 down 247.55 points or 0.61%, while Nifty fell to 11,856.80 levels down 80.70 points or 0.68%. As mentioned earlier, the Nifty is likely to stabilize around 11700 mark before taking a dive below 9500 levels. Meanwhile, to make the matter worse, there is news that the equity mutual fund (MF) schemes recorded worst inflows in three and a half years at Rs.1,311 crore for November. It was 78% low compared to the preceding month. However, despite the drop in equity inflows, the assets under management (AUM) for the industry soared to a record high of Rs.27 trillion, thanks to over Rs.50,000 crore of net inflows in debt schemes. This means the money is getting shifted to debt from equities. Concerns around downgrades and defaults are keeping investor sentiments under check. #Today as expected the scrip of Yes Bank Ltd fell below Rs.55/53 levels, and closed at R...
Some Thoughts Photo : Indiainfoline Nifty yesterday closed at 11,937.50 up, a mere 16 points or 0.13%. This is a dead cat bounce, after that massive fall on Friday. The indices struggled the whole day to remain in the green territory. The Nifty is likely to test 11700 mark in the coming days due to lack of fundamentals or the supporting props. The P/E of Nifty 50 is 27.81 and has an EPS of just 429.10. With these figures in place do you think there is any reason to believe that Nifty will close above 12000? The operators are playing in 50/60 stock and is managing the indices. This can't continue for long, ultimately like a pack of cards, the Nifty has to fall. Before that happens, you need to take caution and trim down your overnight buy positions, till a correction of around 200/250 gets over in its intermediate journey to below 10600 mark. In this tepid backdrop, I would suggest the small investors to stay away from the m...
Caveat #RBI growth forecast has come down to 5% Photo : Medium.com with Feku method along with a threat of inflation monster raising its head once again; this means the real GDP growth will be much LOWER in future. Exit all your open positions, either at cost price or at a minimum loss. The market is due for at least 200 point correction in Nifty. #The scrip of P C Jeweller Ltd (Rs.26.85 ) has broken the SL at Rs.27. Hence, come out of the scrip. #The stock of Yes Bank Ltd (Rs.59) , in all probability is likely to go below Rs.55/53 ranges. Don't take any fresh positions.
Tit - bits #Today I recommend Wockhardt Ltd (Rs. 250.05) for the short term on the media news that Cipla Ltd is in advanced talks with the company for a stake sale; which the latter wants to lap up. Wockhardt Ltd had a total debt of Rs.3,367 crore as on March 31, 2019 and its current market capitalisation stands at around Rs.2,767.82 crore. It has a diversified product portfolio with a presence in therapeutic segments such as cardiology, dermatology, diabetes, respiratory, etc. The catch Point is: it export portfolio is around 70%. I'm expecting the scrip to double from the current price within January, 2020. #The stock price of P C Jewellers Ltd ( Rs.27.50) is testing its immediate supports. With no definite news of signing of the US - China Trade Deal, the gold prices are likely to remain buoyant. Also, the RBI has kept the Repo Rate unchanged, on inflation fear. This is positive for the Gold sector. So...
Tit - bits #As expected the scrip of Hathway Cable and Datacom Ltd, hit the buyer freeze at Rs.21.40 on the news of the launch of JoFibre. If you remember the scrip was recommended in this blog around Rs.18.80/19.10 ranges. #The stock of P C Jewellers Ltd (Rs. 27.65) today fell with low volumes, indicating a probable end of the corrective phase. You should accumulate the scrip in every decline for short term targets of Rs.37/41. It is India's 2nd largest Jewellery company and has a good number retail stores and hence you are not throwing your money in a drain. Meanwhile, India February Gold futures rose on December 5 on the worries regarding an early settlement of Sino-US trade deal. Many eperts are suggesting investors to use "Buy - on - dips strategy", as long as Gold trades above Rs. 38,000 levels. #Buy the scrip of Wockhardt Ltd at around Photo : Fierce Pharma Rs.251/255 for short term targets of Rs.317/291. A deal is brewing in the short which...
Advantage Hathway Cable and Datacom Ltd The much awaited Jio Fibernet plan is finally launched sometime back and fiber-to-the-home (FTTH) is now available to one and all. The rental charges for Jio Fibernet plan is Rs.699 and it goes up to Rs.8499. The lowest tariff provides access to 100 MBPS. Most of the Jio plans provide access to all the Jio service. It is pertinent to mention here that last time the Launch of JioFibre news took the scrip of Hathway Cable and Datacom Ltd (Rs.20.70) by storm and pushed it near Rs.40 within a few weeks; from around the same levels (I mean CMP) as of today. Keep watch.... 😀 #With Jio Fibernet, you can enjoy a range of services including Jio Fibernet cable TV, Free High definition TV, and free voice calls. As a Jio Fibernet customer, you will gain automatic access to Jio apps like Jio TV and Jio Cinema. Very soon, the Jio Fibernet customers can also enjoy a highly interesting service namely "First Day First Show" which w...
Gold on Positive Footing There are some recent news which hints at Gold price remaining buoyant in the short term. Let us check them one by one: #Gold prices gained Rs.286 to Rs.38,265 per 10 gram in Mumbai bullion market yesterday, on weaker rupee and following comments by the US President Donald Trump that a trade deal with China may happen only after 2020 US presidential election. #The ensuring marriage season in India will keep the demand for the yellow metal on the upswing. #India's gold Imports in November, 2019 Photo : FX Empire jumped 78% from a month earlier to the highest level in 5 months as jewellers in the world's second-biggest consumer of the metal restocked after a fall in prices, a government source said on Tuesday. #The Commerce Minister, Piyush Goel's assurance that he would work to lower import duty on gold from 12.50% is another ammunition in the hands of the bulls. Meanwhile, gold prices in Indian markets fell m...
Tit - bits #There are a couple of good news for the shareholders of P C Jewellers Ltd (Rs. 27.35) , TBZ Ltd (Rs.37.70) and Rajesh Exports Ltd (Rs.675). Commerce and Industry Minister Piyush Goel said he will work with gems and jewellery industry on their demand to cut import duty on gold and bring back businesses, which have shifted from the country. Photo : Live Mint Meanwhile, India's gold imports in November, 2019, jumped 78% from a month earlier to the highest level in 5 months as jewellers in the world's second-biggest consumer of the metal restocked after a fall in prices, a government source said. #In another significant development, the trial run of JioFibre has ended. Hathway Cable and Datacom Ltd (Rs.19.90) and Den Networks Ltd (Rs.39.20) are both Mukhesh Ambani (majority) owned companies. According to a media report, it seems like, Reliance Jio has finally started providing its 4K Set-Top Box to the paid JioFiber users. Mukesh Ambani-own...
Hathway Cable & Datacom Ltd: Buy At present, the entire telecom industry is saddled with dues of over Rs 7.8 lakh crore and therefore the hike in tariffs for prepaid connections, is expected to increase the average revenue per user (ARPU). Taking cues from here we can expect a hike in cable TV subscription rates, also in the near future. This Mukhesh Ambani group company is one of the leading players in the sector. Buy the shares of Hathway Cable & Datacom Ltd at Rs.20.10/20.50, for short term targets of Rs.24/25. SL: Rs.19.
Tit - bits #The Indian Stock Market after a muted start in the Monday morning is likely to consolidate around the current ranges, i.e. 12000 - 12103, with support coming at 11950. The impact of GDP data has already been factored in the current levels. #According to the latest shareholding pattern of P C Jewellers Ltd (Rs.30.15) we see that most of the big investors have retained their stakes in the company as compared to the June, 2019 quarter. Eg. 1.Combitic Global Caplet Pvt Ltd -- 1.21% 2. Karvy Stock Broking Ltd -- 1.80% 3. Life Insurance Corporation of India -- 1.76% 4. Matthews Emerging Asia Fund -- 1.57%. Moreover, the Central Bank of India has stated in its latest meeting that it is ready to go with a softer interest rate regime to give a forward kick to the sagging fundamentals of the Indian economy. It is pertinent to mention here that Lower Interest Rates, benefit non-interest yielding asset classes like GOLD....