Tit - bits

Key domestic benchmarks equity indices closed with robust gains on Tuesday, propped up by steep slide in crude oil prices and positive global clues.  

Market sentiment also got a positive vibe from sudden jump in manufacturing PMI. The IHS Markit India Manufacturing Purchasing Managers' Index (PMI) jumped from 52.7 in December to 55.3 in January, its highest level in just under eight years. 

The BSE S&P Sensex rallied 917.07 points or 2.30% to end at 40,789.38, its highest closing level since 30 January 2020.

The Nifty 50 index soared 271.75 points or 2.32% to 11,979.65, its highest closing level since 30 January 2020. 

In the wider  market, the BSE Mid-Cap index rose 1.37% and the BSE Small-Cap index rose 1.29%. Both these indices underperformed the Sensex. 

The market breadth was very strong. On the BSE, 1618 shares rose and 885 shares fell. A total of 181 shares were unchanged.

According to Moneycontrol.com, the key support level for Nifty is placed at 11,846.67, followed by 11,713.63. If the index continues to move up, key resistance levels will be 12,049.47 and 12,119.23. 

Now,  with the US markets closing in the positive territory and the whole of Asia is green,  except Taiwan, we can expect a positive start for Nifty and then going for a consolidation phase for a couple of days. Buy good stocks in dips.

#The scrip of my Yes Bank Ltd (Rs.34.95), surprisingly closed in the red yesterday,  when the whole market was in jubilant mood. This I feel is due to delay in capital rasing. However, I feel the investors missed two very important points:

• The stock is highly sold in daily, which naturally calls for a BOUNCE before the BOD meeting on 7 February, to get shareholders approval for fund raising. 
• Yes Bank, pursuant to invocation of pledge of shares, acquired 127,321,500 equity shares having face value of Rs.10 per share constituting approx. 29.97% of the post issued paid up share capital of Rosa Power Supply, a wholly owned subsidiary of Reliance Power. It is pertinent to mention here that 1,200 megawatt (MW) Rosa thermal power project at Shahjahanpur in Uttar Pradesh became fully operational after it commissioned the fourth and the last 300 MW unit on March 31, 2012. It was set up by Reliance Power at an estimated cost of around Rs.6000, whose current enterprise value, after 7/8 years, shouldn't be less than Rs.10,000 crores. So,  30% of it means Rs.3000 crores in the kitty of Yes Bank. The Rosa Thermal plant (1,200 MW) at Shahjahanpur in Uttar Pradesh, owned by the RPSCL generated 4,341 million units for the year ended March 31, 2019. During the first six months of FY20, RPSCL achieved strong operating performance with a plant availability of 98.5 percent and plant load factor of 78 percent, the company noted in a press release.
• Yes Bank Ltd (Rs.34.95), also has 5.49% holding in Sical Logistics Ltd. SICAL Logistics is engaged in providing dredging and retail supply chain logistics solutions.