Tit - bits

#On Monday (24 February, 2020), the Indian markets are likely to open gap down and the Nifty

is expected to test 1200/11800 zone. The imports from China,  might get costly due to coronavirus epidemic. This will help the companies, who don't use Chinese raw materials to make finished good. However, we could see margin shrinkage in electronic items like TV,  unless their price is raised. But when there is a slowdown in demand, the rise in product prices may actually hit the sales. 

Moreover,  it seems there is a structural breakdown of Indian economy as there is a rise of unemployment along with a raging inflation. Therefore, titillating it with more and more stimulus could lead to hyper inflation.
It is pertinent to mention here that, while,  the US economy is booming, our current dispensation in Delhi, has creatively destroyed, through erroneous policy making. Narendra Modi went to the US at the end of last year ("Howdy Modi") and bluffed the people there, that everything is fine in India. 

#Those who have entered the share of HCC Ltd (Rs.9.30), should accumulate on declines. 

HCC Ltd's Q3FY20 profit came at Rs.234 Cr. It also announced plan to reduce debt by Rs.2,100 crone. 

#The shares of Wockhardt Ltd (Rs.357.60), may test Rs.312/325 before taking a fresh upmove. Wockhardt Ltd has sold a part of its branded biz to Dr Reddy’. The ₹1,850 cr sale deal includes its manufacturing facility at Baddi in Himachal Pradesh. 

#Meanwhile,  there is news in a section of

international media that according to scientists ships and cars can now be powered by ammonia in fertiliser rather than diesel within the next few decades.
In a bid to tackle climate change and C02 emissions, the key ingredient in manure can be harnessed to burn in a ships engine or get mixed with a fuel cell to produce energy in a car. This is a positive news for the fertilizer sector.
Moreover, the ammonia and sulohur prices are expected to fall due to coronavirus outbreak in China. Ammonia is a key raw material for the manufacture of Urea.
According to the industry, the assessed requirement of urea in the rabi season is 16.2 million tonnes, 5.05 million tonnes for DAP, 1.73 million tonnes for MOP and 5.2 million tonne for NPK.
The Muriate of potash (MoP) which is entirely imported have however seen an increase in prices by 4% . ICRA expects these prices to sustain for the most part of rabi season unless the rupee depreciates fuctuates too much. 
The demand for fertilisers will peak in the coming weeks, with farmers continue planting of wheat, mustard, barley, masur and other crops.

#Buy the shares of Sun Pharmaceuticals Ltd at around Rs.404.95, for short term targets of Rs.431/436. SL: Rs.396.

I feel it would not be an exaggeration to mention that most of the manufacturing units related to Sun Pharma's supply chain are quite far away from the epicentre of coronavirus epidemic and hence its API will have bare minimum negative effect; due to the ongoing havoc in China.