Tit - bits

Let me begin by raising two important concerns: 

• This blog's UI continues to remain user unfriendly. Hence, I have to write the whole blog post in a different platform and copy paste here. This is what is all about the world famous IT company Google’s latest technology drive on their blogspot ecosphere. 
• Mumbai's suburban local train service continues to run under gender bias or the ride is hinged on gender specific issues. The ordinary males, the bread earners in many families continue to be denied its services while females from many families are using it for tourism purposes to Churchgate and elsewhere. Moreover, I feel the hand of a strong transport lobby is behind this move, to keep the general public out of the Mumbai's local train services. Therefore, whether this move of keeping away the ordinary MALE folks out of the local train services in Mumbai is stupidity or a clandestine deal to please a section of voters is difficult to say. Hope good sense will prevail and soon we will be able to see the Mumbai Suburban Local Train Services, flaunting a democratic attire.

Meanwhile, the Indian stock markets continue to reel under bear grip, as expected and as was mentioned last week. 

Figure on the left: The P/E Ratio of the domestic Stock Indices. Source: Prime Investor. 

Yesterday, the BSE Sensex closed at 48,347.59 down 530.95 points (-1.09%), while the NSE's Nifty ended the day at 14,238.90 down 133.00 points (-0.93%). With the P/E of Nifty dangerously placed at around 38.55, we are likely to see, bears tightening their grips further in the coming days. Therefore, use any intraday rise in the markets to exit or trim down your long positions and sit with cash.

#The stock of Adani Ports and Special Economic Zone Ltd (Rs.526), crashed to Rs.523.10 yesterday, intraday. The short call was given at Rs.550, a couple of days back. You may continue to hold the short positions for the target mentioned earlier.

#The scrip of 3i Infotech Ltd (Rs.7.02), reached my downward target of Rs.7. If you remember, an exit call was give last week, when many market participants were talking of it reaching, a double digit mark. Hope, all my clients, friends and ardent blog readers have exited the scrip lock, stock and barrel.

#The stocks of auto sector were moving up since the last few weeks piggybacking on good sales numbers. But, this is due to absence of transportation facilities, post Covid - 19 issue, especially due to the closure of local train services in many locations. I strongly feel that this synthetic move is not going to survive in the near future and hence we are expected to see a deep correction in the auto sector in the coming days.

#Join my CROREPATI SCHEME (recently Equitymasters have come up with almost a clone of my scheme) if you have a seed capital of around Rs.2 lakhs. As an introductory offer, you need to pay only 20% of the profits generated, till your capital becomes Rs. 1 crore. This is only for the first 4 (four ) individuals or share market participants, who join the scheme immediately. Once this quota is over, I'll make the profit sharing ratio as: 25%, 30%, 35%, etc. This is NOT a PMS issue. You have to do the trading on my suggestions or information. However, the process or the algorithm behind the scheme can't be disclosed.

#Sell the shares of Non-banking financial company Manappuram Finance Ltd near the CMP of Rs.160.30 for short term targets of Rs.141/139. SL: Rs.163. 

It is pertinent to mention here that, the company's gold loan borrowers consist mainly of farmers and small micro entrepreneurs, the sector which is witnessing turmoil during the last few weeks. Besides gold loans, the company has presence in microfinance loans, vehicle and equipment finance and home loan finance. 

The non-gold businesses contribute a share of 33% to the total portfolio. With auto sector growth tapering off as we see more opening of railways and air route for travel, the stock is likely to be under bear grip in the near future. Moreover, doldrums in the real estate space is also likely to pose problems for its home loan division, in the coming months - a clear sell. 

During the last few weeks the Wall Street's main indexes rallied to record highs recently on hopes of a speedy economic recovery fueled by a hefty fiscal stimulus package and vaccine distribution. But yesterday, the Dow Jones got a jolt while moving up. 

President-elect Joe Biden, who was sworn into office on Wednesday, earlier outlined a $1.9 trillion stimulus package proposal last week to jump-start the economy and accelerate the distribution of vaccines.

However, passing the massive proposal after more than $3 trillion in stimulus was injected into the economy last year, is likely prove challenging. A bipartisan group of lawmakers, has already pushed back against the size of Biden’s proposal during a call with White House adviser Brian Deese last weekend.

Global stock markets lacked direction on Monday, with optimism over a $1.9 trillion U.S. stimulus plan offset by increasing COVID19 cases and delays in vaccine supplies. 

Moreover, with all the hypes around the shares of global Covid - 19 vaccine makers, a recent report showed that, all of them are not making huge profit by selling vaccine.

As of January 22nd 2021, more than 56.7 million doses of the COVID-19 vaccine have been administered in 52 countries, by health care workers. 

Hereto, there are at least nine vaccine candidates that have been approved for public use. The most widely accepted among these include Pfizer-BioNTech, Moderna and AstraZeneca-Oxford, but there are others such as Russia’s Sputnik V, China’s CoronaVac and India’s Covaxin. 

However, not all vaccine makers are looking to (immediately) price-gouge. To their credit, many of them have affirmed that they will sell vaccines at cost for as long as possible. 

Johnson & Johnson and AstraZeneca had pledged to make their vaccines available on a not-for-profit basis, with the latter adding that low - and middle-income countries would receive its vaccines at lower prices. 

That said, all others have not made such promises. Moderna and Pfizer told US lawmakers last year that they would try to profit from their vaccines to cover R&D costs.

Therefore, the rise in the stock prices of the vaccine makers is likely to get impendientts in future. I would suggest to book profits in the shares of these pharmaceutical companies.  

In the US, this week will have a slew of corporate earnings results, economic data, Federal Open Market Committee meeting and debate over the Biden administration’s $1.9 trillion stimulus proposal.

Equity markets have scaled record highs in recent days on bets vaccines will start to reduce infection rates worldwide and on a stronger U.S. economic recovery under President Joe Biden.

However, investors are wary about towering valuations of shares, amid questions over the efficacy of the vaccines in curbing the pandemic and as U.S. lawmakers continue to debate a coronavirus aid package.