Winning Strokes

The the BSE Sensex is currently trading at 51,037.45 up 19.93 points (+0.04%) while the Nifty50 was seen at 15,315.25 up 13.80 points (+0.09%). The Nifty is likely to face resistance around 15300/15550 zones. Hence, the Nifty buyers should look at these levels to liquidate their positions. But there are media speculations that with the world's worst pandemic outbreak scarring nascent economic recovery, the government of India may at the beginning of the unlock phase announce another stimulus package for the most hit sectors such as small business and self-employed. 

Hence, I don't see the Nifty going down too low from here. Photo: I'm standing outside the Premises of a Future Retail group company in Boisar West, Greater Bombay. 

#It you have an investable fund of around Rs.2/3 lakhs then you can think of joining my profit sharing scheme and get good ROI on your investments. There would be no trading, in the scrips purchased on delivery basis. You will get regular inputs from me on your WhatsApp number. Eventually, within a period of few years, with an one time investment of only around Rs.2/3 lakhs, you have the chance to become a #Crorepati. 

#The shares of Future Retail Ltd (Rs.45.55) is consolidating around the current ranges, before starting its next round of upmove. Future Retail Ltd, which operates retail chain stores under several formats including Big Bazaar, saw its net loss at Rs.846.92 crore during the quarter ended December 2020 from Rs. 692.36 crore in the September quarter of the current fiscal and a net profit of Rs. 164.56 crore in the year ago period.

However, last month, Big Bazaar rolled out its two-hour delivery service and since then, it has been working on innovative ways to ensure people spend less time at stores at this point in time. Cities such as Bhopal, Mangalore, Raipur, Ranchi, Guwahati, Kanpur, Lucknow and Varanasi, to name a few, have seen orders climb over the past week.

Since April 2020, the retail chain has penetrated deeper in smaller towns and cities (Tier - 2/3 cities are hotbed for growth) with small format stores in cities like Gomti Nagar in Lucknow, Madanapalle in Andhra Pradesh, Kidderpore and Serampore in West Bengal, Kollam in Kerala and Ballari in Karnataka.

Though for large brick-and-mortar outlets, pandemic-induced curbs have largely delayed construction and opening of new stores but the company is hoping to come up with 5-6 stores by August-September. Presently, the retailer is getting around 60,000 deliveries per day and aims to touch the one-lakh figure by the end of next month.

Big Bazaar CEO Sadashiv Nayak told The New Indian Express: "We are now clocking 200 orders per store a day on an average and our ticket size per order is around Rs 1,400".

Moreover, with India having already vaccinated around 20 crore of its population, I hope within the next 6 months, all the Covid-19, restrictions will be over. Hence, from September quarter onwards we could see the fortunes of the company shine, once again.

Besides, since Amazon had already invested Rs.1500 crore in a sister company, it would definitely not like the company’s fundamental to plummet too low. Therefore, accumulate the shares of the company on all declines. You will get sure shot returns on your investments.

#My recommended Reliance Capital Ltd (Rs.13.35) has hit another buyer freeze today. It is the third consecutive UC. With the fear of Covid-19 lingering, we will definitely see the future of insurance providers to move high. Also, since sometime, the ADA pack of Anil Ambani has been soaring high. This gives us some ammunition to think that the share woukd make a new 52 - week high very soon.

Also, my recommended Reliance infrastructure Ltd (Rs.65) around Rs.9/10 last year has given multibagger returns to the patient investors.

#Also, you can exit the shares of SAL Steel Ltd (Rs.4.40) either with no - profit - no - loss basis or with minimum loss and invest the fund in United Credit Ltd (Rs.10.29) near the CMP for short term targets of Rs.21/22. The all time high of United Credit is aroubd Rs.50, which was made in 2010 - 11 period. This NBFC has no debt and has market cap of only Rs.5.79 crore. With the sector P/E of 49.59, P/B has of 0.23 and Net Worth of Rs.25.41 crores, the shares can easily cross Rs.30 in the medium term. It is an investment grade scrip. If I can recollect correctly, then I feel I had recommended this stock earlier too, especially post Lehmann Brother's Crash.