Tit - bits

#The key support level for Nifty is placed at

11,999 followed by 11,902. With most of world market trading in the green, the domestic indices are expected to open gap up, tomorrow. On the upside tbe important resistance levels are 12,141 and 12,192.

#Yesterday,  the shares of Yes Bank Ltd moved to Rs. 39 70, before closing at Rs.37.60. 

However,  there is a disturbing news report which goes as: Former Yes Bank independent director Uttam Prakash Agarwal has demanded appropriate action against the lender's CEO and MD Ravneet Gill for allegedly violating various regulatory norms. In a letter to RBI Governor Shaktikanta Das, Mr.Agarwal alleged breach of governance, non-compliance, undue influence and control on the majority members of the board by Gill through quid pro quo.

The letter dated January 30, 2020, also alleged siphoning off funds through paymet of unreasonable fee of Rs.21.28 crore for raising capital of Rs.1,930 crore in August by way of Qualified Institutional Placement.

In such circumstances I would suggest the traders to book complete profits around Rs.38.50/39 and maintain wait and watch policy. 

#Those who have added the shares of National Fertilizer Ltd (NFL) at around the CMP of Rs. 26, should look for better days ahead. 

The NDA government had allocated Rs. 2.83 lakh crore for agriculture and allied activities, irrigation and rural development in 2020 FY21 budget.

The NDA government has sought to keep capital expenditure growth high to support the economy. While the total expenditure is budgeted to grow at 12.70% in FY21, capex is budgeted to increase by 18%, higher than the 13% growth in the FY20.

With schemes like PM-KISAN already operative, providing direct benefit to farmers and the poorest may be a smarter alternative to the Agri subsidies.
Moreover, Ramagundam Fertilizers & Chemicals Limited (RFCL), a Joint Venture of National Fertilizers Limited (NFL), EIL & FCIL is tentative to start production from next month.

The agricultural sector has been in a slow down for a past couple of years now. To overcome this, Finance Minister N. Sitharaman through this budget tried to change this situation. The finance minister proposed a 16 point action plan in her speech while presenting the budget so as to improve the condition of the agricultural sector and to double the income of the farmers in the next two years.
The downward revision in the budgetary allocation for the fertiliser subsidy for FY2020-21 (BE) to Rs.71,309 crore, as against the revised estimate of Rs.79,998 crore for FY2019-20, will have negligible effect on the fertiliser industry; as the amount is too small.
National Fertilisers imited (NFL) has reported a 3% increase in its consolidated net profit at Rs.107.11 crore for the quarter ended December. Its net profit stood at Rs.103.59 crore in the year-ago period, the company said in a regulatory filing.
During the nine months (April -December 2019) of current financial year, the total fertilizers sale rose by 25 per cent to 43.73 lakh tonnes.
NFL, currently operates five natural gas based urea Plants, located at Nangal, Bathinda in Punjab, Panipat in Haryana and two plants at Vijaipur in Madhya Pradesh.
Also,  NFL is a high dividend paying, disinvestment candidate.
The scrip of NFL is likely to see Rs.31/32, within a fortnight.

#Another important development is that,  the equity market rally became broad-based in January. Small caps significantly outperformed large caps with the Nifty Small Cap 100 rising 6.70% for the month versus a 1.70% fall in the Nifty. Similarly, Nifty Mid Cap 100 rose 5.30% outperforming the Nifty by 7%.
Therefore,  focus on beaten down stocks from this space.