Winning Strokes

When this report was being written the markets were seen upbeat, piggybacking on strong overseas, cues.

BSE Sensex was trading 51,206.91 up 425.22 points (+0.84%) while the Nifty50 was seen at 15,130.30 up 148.30 points (+0.99%). 

The S&P BSE Mid-Cap index was up 0.97%. The S&P BSE Small-Cap index was up 0.86%. The market breadth, indicating the overall health of the market was strong. 

On the BSE, 1488 shares rose and 489 shares fell. A total of 77 shares declined.

#The Nifty50 bounced back from near 14700, making a temporary bottom. However, the Nifty will face resistance at 15150, shifting the focus in the small and mid cap space. 

#Buy Future Retail Ltd (Rs.70.25) near the CMP for short term targets of Rs.91/97/165. SL: Rs.65.

Triggers:

• The shopping malls have once again started functioning. Hence, from this quarter the business of the company is set to take an upwards momentum, especially when the FM has come up with an expansionary budget to boost the consumption matrix. 
• Whether it is Reliance or Amazon, it is now certain that Kishore Biyani's Retail Group, will get assistance from either of the two giants in the retail space. Hence, a debt of the company is to be substituted by capital infusion - - it may be Amazon or Mukesh Ambani's Reliance Group. 
• Last year there were media reports that Mukesh Ambani has sealed the deal with Kishore Biyani's Future group at ₹24,713 crore.  This is a massive amounte and will surely take the share price to its heyday levels, i.e. Rs.300 - plus or which is more than 4 - times the CMP of the Shares of Future Retail Ltd. 
• Competition Commission of India last year cleared Reliance's proposed acquisition of retail, wholesale, logistics and warehousing businesses of Future Group. In a tweet on November 20, the regulator said it has approved "acquisition of retail, wholesale, logistics & warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited".
• The bone of contention is that the E-commerce mammoth, Amazon's continuous opposition to the deal between Future Group and Reliance Industries. Last year, Amazon bought 49% stake in one of Future Group's unlisted firms, with the right to buy into the listed flagship Future Retail Ltd. Amazon claims that its contract with the unlisted Future Coupons Ltd barred a transaction with a number of persons and companies, including Reliance. So, Amazon is already there in one of the businesses of the future group and the entry of Reliance will further bolster the business. 
• According to a media report: in its submission to the emergency arbitrator, the homegrown retailer claimed that Abhijeet Mazumdar, head of corporate development and private investments at Amazon, had made a verbal offer to Future Group promoter Kishore Biyani on behalf of the e-tailer, asking for “$40 million as compensation in exchange for the Future Group and Reliance proceeding with the disputed transaction”. So, the dispute is probably with only a meagre Rs.300 crore out of the total deal value of $3.4 billion (roughly Rs. 24,640 crore), offered by Mukesh Ambani's Reliance group.

Therefore, the bottomline is: whether it is through Amazon or Reliance, it is now certain that, the business of Future Retail is to get a fresh lease of life in the near future. 

#The blog readers were suggested an exit from the Shares of 3i Infotech Ltd (Rs.6.15), when it was near Rs.8/9. Today the scrip broke the support at Rs.6.30 and is heading towards Rs.4.80/4.90, on the downside. Those who have still not exited, kindly wait for the scrip to settle down near the levels mentioned, to do some averaging.