SumanSpeaks: The Information Super Highway

Tit - bits Photo : Indiainfoline The BSE Sensex yesterday closed at 34,961.52 down 209.75 points (-0.60%), while the Nifty50 closed at 10,312.40 down 70.60 points (-0.68%). The ongoing Sino - India border skirmishes weighed on the investors' sentiment, apart from the nagging Covid - 19, issue. Moreover, weakness in banks and IT shares also put pressure on bourses. In the broader market, the BSE Mid-Cap index slipped 1.39%, while the BSE Small-Cap index fell 1.23%. Both these indices underperformed the Nifty.  The market breadth was negative. On the BSE, 1,142 shares rose, while 1,643 shares fell. A total of 141 shares remained unchanged. As mentioned earlier, the Nifty is likely to consolidate around 10200/10500 ranges, till a more clearer picture come out of the Covid - 19, pandemic. #You can continue to hold on to your short SAIL (Rs.29.55) for short term targets of Rs.28/27. The ensuring monsoon season and a near breakdown of the real estate sector is li...

Tit - bits Photo : India Infoline   On last Friday you must have noticed that, a surge in buying occurred in the last hour, across all the sectors.  As a result the BSE Sensex closed at 35,171.27 up 329.17 points (+0.94%), while the Nifty ended the  day at 10,383.00 up 94.10 points (+0.91%). The interesting point is that both the indices completed 61.8% retracement level and formed  a Bearish Engulfing Pattern on daily candlestick charts. This may result in Nifty going in for a short term correction. However, any close above 10570, may give the bulls the next phase of ammunition.  The NIFTY and BANKNIFTY saw positive weekly gains of +1.35% and 1.19%  respectively. On the other hand, both MIDCAP100 and SMALLCAP100 space outperformed their counterparts by rising +2.81% and +2.88% respectively.  This week, while the PSU Bank sector is expected to cool down a bit, post whirlwind rally, the FMCG and IT could continue to show bullishnes...

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Tit - bits Photo : Patrika.com When I'm preparing this report, the the BSE Sensex was trading at 35,103.70 up 261.60 points (+0.75%), while the Nifty was seen at 10,370.10 up 81.20 points (+0.79%), as the board of the Securities and Exchange Board of India (Sebi) yesterday eased pricing framework for preferential allotment of shares, making it simpler for listed companies to raise money. According to the latest SEBI circular, two week average would be taken into consideration for  pricing preferential share issue, apart from streamlining the operation, adding more teeth to it.  In the broader market, the BSE Mid-Cap index was up by 0.54% while the BSE Small-Cap index rose 0.52%. The market breadth was strong. On the BSE, 1551 shares rose, while 651 shares fell. A total of 113 shares remained unchanged.  #My recent blog recommendation MBL Infrastructure Ltd (Rs.7.35) hit the 7th consecutive buyer freeze. Tihe stock is expected to cross Rs. 10 in the ...

Tit - bits The traders today got spooked by news of rising coronavirus cases across the globe and also on the news in a section of the media that China has increased the strength of its troops by 30% along LAC There was also media reports that the risk-reward ratio is skewed firmly towards the negative for Reliance Industries Ltd (Rs.1731.15) shares after the run-up in stock price, says Foreign brokerage house Macquarie. The Snsex fell 246.71 points or 0.70% to 35,183.72, while the  Nifty50 slipped 66.45 points or 0.63% to 10,404.55. The market breadth however was positive. On the BSE, shares 1319 rose and 1307 dhares fell. A total of 134 shares were unchanged.  Foreign portfolio investors (FPIs) bought shares worth Rs.168.96 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs.454.40 Cr.  #The stock of Kolkata based infrastructure firm, MBL Infrastructure Ltd, hit the 5th consecutive buyer freeze today to touch Rs...

Tit - bits Photo : Just Dial  Sensex soared 364.66 points or 1.04% at 35,275.98, while the Nifty50 index move up by 111.75 points or 1.08% at 10,422.95. The BSE Mid-Cap index rose 1.49% while the  BSE Small-Cap index gained 1.41%. In the BSE, shares of 1,830 companies bore rose and 730 shares fell. A total of 140 shares remained unchanged.  #Buy the shares of J Kumar Infrastructure Ltd near the CMP of Rs.99, for short term targets of Rs.127/131. SL: Rs.86. #The shares of MBL Infrastructure Ltd hit 4th consecutive buyer freeze at Rs.6.45 in the NSE. The share price of the company should cross Rs. 10 in the coming days. #The shares of Everest Kanto Cylinders Ltd hit another buyer freeze today at Rs.19.60. The  demand for company's products is likely to remain buoyant. #The shares of National Fertiliser Ltd (Rs.29.70)  today touched Rs.30.20, intraday. The share has doubled from the low it made post Covid - 19 Lockdown. This is an investment g...

Tit - bits Yesterday, the S&P BSE Sensex jumped 700.13 points or 2.09% at 34,208.05, while the Nifty 50 index rallied 210.50 points or 2.13% to close at 10,091.65; led by the shares of banks and metal companies. Today, the Indian markets might remain a little subdued due to overall negative global cues and also due to the fact that Fitch Ratings has revised the Outlook on India's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Negative from Stable and affirmed the rating at "BBB-". Another major concern is that the partially convertible rupee, though ended at 76.14, compared with its close of 76.16 during the previous trading session, is still threatening to cross 80 mark,  as Indian economy has slowed down considerably  due to continuous mismanagement by the NDA government and of course due to the outbreak of Covid - 19 pandemic.  The markets could also get spooked by the disturbing Coronavirus - trends in several US states, including...

Tit - bits Photo : The Telegraph India The current rebound in the Sensex and Nifty are  not reflecting what some believe is a stronger economy. Or in other words we shouldn't fall into the trap of associating economic activity with stock prices. This market is getting difficult to predict than in past recessions. Avoid being dogmatic in your outlook and trade with caution. The peculiarity of this market is that as the economic data gets worse, traders get more aggressive in buying stocks. This is probably due to ample liquidity in the system. However, in case of India, in the Rs.20 lakh crore package announced by Narendra Modi, the stimulus part is only 1% of the GDP in contrast to a worldwide average of 4%. We are hearing lots of commentary about how serious the COVID-19 economic slowdown will be. The IMF recently released a report predicting a -6% contraction in global GDP. This makes Covid - 19 triggered economic crisis as the worst recession since the Great Depressio...

Tit - bits The Indian markets could open a gap down today following Narendra Modi's Brinkmanship with China, after his faulty diplomacy drew the Hindu majority country Nepal, towards China. India under his Tughlaq - ian leadership has already faced enough problems due to an unplanned Lockdown. Now,  this China episode will be fly in the ointment. China is basically a Buddhist - Taoist country. India is now at war with a Muslim Majority Pakistan, a Hindu majority Nepal and a Buddhist - Taoist majority China.. Wow!!  Thali Bajana Chahiye Ki Nahi, Dosto? (Friends should we bang "Thalis"?) Narendra Modi Jaise Mahan PM, Aaj Taak Aisa Kaam Nahi Kiya.  The pictures on the left hand side are excerpts from Malevolent Republic: A Short History of the New India by K. S. Komireddi, Oxford University Press, 27-May-2019 - Political Science - 271 pages. Price: Rs.1782.81.. Anyway, according to charts, the key support level for the Nifty is placed at 9,750 followed...

Tit - Bits Photo : RushLane Domestic bourses ended with heavy losses on Thursday, in view of weaknes in the global markets and also due to increasing number of Covid - 19 cases.  The S&P BSE Sensex nosedived 708.68 points or 2.07% to close at 33,538, while the Nifty50 tumbled 214.15 points or 2.12% end the day at 9,902. The BSE Mid-Cap index also fell by 1.41% and the BSE Small-Cap index lost 1.04%. On the BSE, 1,018 shares rose and 1,533 shares fell, while 154 share remained unchanged mirroring the weakness in the broader market.  Meanwhile, the Organisation for Economic Co-operation and Development (OECD) has kept India's growth at -3.7% for the ongoing fiscal and warned that growth could further slump to -7.3% in the case of a second COVID-19 outbreak.  In another significant development the US Federal Reserve held interest rates at near zero on Wednesday, after a two-day Federal Open Market Committee meeting. Most policymakers expect histor...

Tit - bits Key indices ended with modest gains on Wednesday. The S&P BSE Sensex closed 290.36 points up or 0.86% at 34,247.05. The Nifty50 ended the day, at 10,116.15 up 69.50 points or 0.69%. Meanwhile, the World Bank said on Monday, 8 June 2020 that India's economy will shrink by 3.2% in the current fiscal. The COVID-19 pandemic coupled with multi-phased lockdowns imposed to curb its spread has resulted in a severe  blow to the Indian economy. The global economy, will shrink by 5.2% this year due to the massive shock of the coronavirus pandemic and the shutdown measures to contain it, the World Bank mentioned. The BSE Mid-Cap index rose 0.81% and the BSE Small-Cap index gained 0.92%. The market breadth was positive. On the BSE, 1525 shares advanced while 1025 shares fell. A total of 157 shares remained unchanged. The Federal Reserve kept interest rates unchanged on Wednesday and indicated it does not expect to raise them through 2022. The Fed also expects the U....

Tit - bits The market ended with steep losses on Tuesday, due to profit booking, after the recent but spell. Nifty hit an intraday high of 10,291.15 in afternoon trade, however profit booking happened which made it close at 10,046.65 down 120.80 points (-1.19%). The BSE  Sensex closed at 33,956.69 down 413.89 points  (-1.20%). In the broader market too, the BSE Mid-Cap index fell 0.21% and the BSE Small-Cap index lost 1%. Sellers outpaced the number of buyers. On the BSE, 1,117 shares rose and 1,459 shares fell. A total of 173 shares were unchanged. The Nifty is below its 100-day simple moving average placed at 10,282.46, which could act as a crucial resistance in near term. The Nifty had moved up by 11.27% in ten sessions from its closing low of 9,029.05 on 26 May 2020. Now, with hyperinflation fear roaring high and the Indian economy stagnating, it is time for the  bulls to take rest for some time; if logic prevails instead of unnecessary eup...

The curious case of Reliance Naval and Engineering Ltd.  Photo : Pluspng The stock of Reliance Naval and Engineering Ltd  (Rs.1.35) has been hitting UCs since some days.  But,  surprisingly the lenders of Reliance Naval and Engineering Ltd (RNEL), a part of Anil Ambani Group, have sought expressions of interest from buyers for the sale of private shipbuilder under the Insolvency and Bankruptcy Code. It being put to sale to recover outstanding loans of Rs.43,587 crore. The last date for submission of expressions of interest (EoIs) is June 27, 2020 while the final list of prospective resolution applicants will be issued on July 17, 2020 according to an EoI offer notice issued by the resolution professional (RP). The company is now the second firm from the Anil Ambani Group to face insolvency after Reliance Communications Ltd. On 20/05/2020, there were media reports that YES Bank sold 2,57,00,000 shares of Relian...

Is India trending towards a Hyperinflation regime? Photo : The Balance Before starting this write up let me up a small caveat: Don't associate the economic activities of India and the US with stock prices. The current rebound in the S&P 500 or Nifty50 is not reflecting what some believe is the sign of a stronger economy; though Donald Trump's US economy is in much better shape than that of Narendra Modi's India. It is really surprising to see that, as the economic data gets worse, traders get more aggressive in buying stocks -- something resembling to the happenings In Zimbabwe, almost a decade back.  Meanwhile, we are reading a lot of media reports which speaks about the vast economic damage COVID-19 pose to the world economy. Recently, economists from the IMF released a report, predicting a 6% contraction in global GDP, further adding that Covid - 19 epidemic, could bring along with it, the worst recession since the Great Depression, and its effect on ...

Tit - bits Today when I'm writing this report, the  BSE Sensex was at 34,273.90 up 293.20 points (+0.86%) while NSE was trading at 10,141.60 up 112.50 points (+1.12%), taking cues from strong global markets, though there is nothing to cheer about in the Indian  economy; except those hackneyed talks of a gradual lifting of Lockdown and stimulus package -  sentiment boosters. The market breadth was quite strong. On the BSE, shares 1,956 rose and 492 shares fell. A total of 132 shares were unchanged. In Nifty 50 index, 40 stocks advanced while 10 stocks declined. Meanwhile, my recommended SKM Egg Products Ltd  (Rs.37.30) today hit the 1st target of Rs.39, as it touched Rs.39.75 intraday. Book some profits. Granules India Ltd also made a high of Rs.187.80, almost near the 1st target of Rs.189. The metals (commodity) basket is doing well today also. Vedanta Ltd  recommended on 25 March, in this blog around Rs.89/90 made a high of Rs.106.25 today, while ...

Tit - bits Photo : Suvvuku Shankar Yesterday, the domestic bourses  extended their bull onslaught for the fifth straight trading session, taking cues from the strong global markets and a sentiment booster speech from the "Jumla specialist", Narendra Modi.  The BSE Sensex jumped 522.01 points or 1.57% to close at 33,825.53, while the Nifty50 index gained 152.95 points or 1.56% to end the day at 9,979.10. Both these indices have recorded gains of around 10.5% in five sessions.  The BSE Mid-Cap and small cap indices registered gains of 1.20% and 1.83% respectively. On the BSE, 1738 shares rose while 721 shares fell. A total of 152 shares were left unchanged. A broad based buying was seen, with lead coming from private. In a sense, the market moved up on Dutch spirit,  on the hope that world and Indian economic landscape would change for the better soon.  Speech specialist, Narendra Modi while addressing the captains of India Inc on Tuesday, r...

Tit- bits Photo : SCB Global Network   At the  time of writing the BSE Sensex was seen trading at 33,617.39 up 313.87 points (+0.94%) while Nifty was trading at 9,918.10 up 91.95 (+0.94%). The domestic indices are likely to come off from these levels, as market participants are afraid of taking leverage positions at current levels amid a rise in volatility. What is irrational and hilarious is that when this quarter GDP growth of India would be near ZERO,  the Nifty is near 10000. Therefore, a stock market contrary to the popular perception is NEVER a barometer of any economy in the short term -- though in the long term markets will reflect the macroeconomic characteristics of any economy.  The point to drive home is that: Stock Markets will rise, if people BUYs stocks and will touch nadir due to sentiment turning extremely pessimistic. In short term,  rise or fall of t bourses has nothing much to do with the fundamentals of any economy, it is purel...

Tit bits   Photo : investopedia Hope you are safe at home or at workplace. I'm not able give too much time to blog because of my preoccupation with other fields. Anyway, to begin with on last Friday, the BSE Sensex closed at 32,424.10 up 223.51 points (+0.69%) while Nifty finished the day at 9,580.30 up 90.20(+0.95%).  But exuberance is only due to liquidity unleaded by various countries across the globe and has no connection with the ground realities of Indian economy. The latest economic fugues show that the GDP growth has plunged to a 11-year low in FY2019-20 at 4.2%. This is way off the mark as far as budget estimates made in the February 1, 2020 and is likely to have severe implications on with government borrowing and interest rates. To make matter worse, the growth in the January-March 2020 quarter nosedived to 3.1%, the lowest since the GDP base year was revised to 2011-12. This suggested that the economy had slowed significantly, well before Covid...