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 Florida and Texas, as well as a new outbreak in China and continuous increase in deaths in India and Brazil.

Having said this, I feel the Nifty would continue to hold Key support level for the Nifty is placed at 9,920/ 9,750 levels on the downside. 

And, stock specific activities would continue to dominate the proceedings in the Indian bourses.

On the positive side the Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) bought shares worth Rs.366.57 crore and Rs.1,131.27 crore in the Indian equity market on June 18, according to the provisional data available on the NSE.

Meanwhile, the small and mid cap space has become active once again. I would like to recommend one stock from this space, which I had suggested, a number of times earlier too. 

In another significant development, my old favourite and strongly recommended National Fertilisers Ltd (NFL Ltd) moved to Rs.29.20, yesterday before closing at Rs. 29. If you remember, I had recommended the scrip several times earlier in this blog and also in my Facebook group/page. And also to accumulate the share on every decline, especially when it fell below Rs.20. Congratulations to those who made money in this share. 

Those who have a portfolio size of around Rs.3/5 lakhs, may come to me for profit sharing scheme. Those who have lost money earlier, can also take my help to recover their losses.  But then they have to wait for at least one year to see some gains. 

A return of 25%/30% per annum is considered good ROI in equity market. Some come to me and want abnormal gains from equities in the short term, which is unfortunate. We need to do a fundamental play on companies and hold on for our targets with proper checks and balances. There will be losses on the way, but at the end there would be gains. 

Ludicrously, there is another group who would dictate terms and say my first priority is protecting capital, so no penny stocks (small and micro caps basically), but their face becomes dull if you can't generate 10%/15% monthly returns from investing in only large caps or at least in Nifty50. If protecting capital is their first priority with such abnormal gains, then they need to literally hire God, to manage the portfolios. 

What I do for my portfolio is to try to double in every two years, by a combination of small, large and mid caps. This has been my funda of success Since more than two decades, in the stock market landscape. It is pertinent to mention here that, it is not that every time I succeed but, I try my level best to achieve that goal. 

Anyway, those who have not bought the shares of Himadri Chemicals Ltd (Rs.46.20), may opt not to buy after Indian government decided to increase import duty on Chinese Goods.

Instead they may replace it with MBL Infrastructure  Ltd at the CMP of Rs. 5.65, for short term targets of Rs.11/12. The infrastructure sector (not real estate) should do a little better, during the Lockdown period. As mentioned above I had recommended this stock several times, earlier too. There is no need to place a SL as it is an investment grade scrip.