SumanSpeaks: The Information Super Highway

Winning Strokes The domestic market began this week with a bang and maintained its uptrend for the 2nd consecutive session of the September series, ending the day with another record-closing high today. All sectoral indices, barring IT, participated in the whirlwind rally with Bank, Metal, Pharma, and Auto being the leader showing a 1.7-2.5% gains. The 30 - share BSE Sensex  soared 765.04 points or 1.36% to close at 56,889.76, while the Nifty50 surged 225.80 points or 1.35% to give a closing at 16,931.05. On the daily and weekly candle stick charts, Bullish Marubozu Candles was formed, indicating the continuance of bullishness. The broader markets also showed bullishness with the Nifty Midcap 100 index rising 1.94% and Smallcap climbing 1.53%. To add to the overall bullishness, the FIIs bought shares worth Rs.1,202.81 Cr, while the DIIs bought shares worth Rs.688.85 Cr, as per provisional data available on the NSE. #The Stock of Mahindra and Mahindra Ltd today surged to Rs.794.15,...

  Winning Strokes The benchmark indices ended on last Friday,the first day of September series, after touching a fresh record high, on intraday basis. The BSE Sensex rose 175.62 points to close at 56,124.72, while the Nifty50 gained 68.30 points to give a close at 16,705.20, forming a bullish candle on the daily charts. However, a long lower shadow of the bullish candle, on the weekly charts shows that bulls are still not safe and bouts of correction could come during the week. #The stock of Mukhesh Ambani owned Den Networks Ltd (Rs.47), has given a hammar formation on the daily chart, with RSI at 38.78 and divergence of only -0.19, indicating an expected short term bounce in the counter. With the lockdown being slowly lifted and migrant workers rejoining their jobs, we can expect better days ahead for the shareholders. You should accumulate the scrip on all declines for medium term targets of Rs.72/77. #The stock of Future Retail Ltd (Rs.45.15)  should break out of Rs.47/47....

  Winning Strokes The BSE Sensex is now trading 55,448.15 up 604.17 points (+1.10%), while Nifty is now at 16,533.45, up 169.05 points (+1.03%) The large caps are likely to consolidate around the current ranges while the action will again shift to small and mid cap counters, from next week.  #According to Media reports, Amazon, the US e-commerce giant is preparing a bailout plan for Future Retail Ltd (Rs.49.10 ) in case the Singapore International Arbitration Centre (SIAC) rules against the merger deal with Reliance Retail.  Meanwhile, in the case between Future Coupons Private Limited Vs Amazon.Com Nv Investment Holdings LLC the Future Group firm, Future Coupons Private Ltd has moved the Supreme Court on August 12, seeking a stay against the order passed by the single bench of the Delhi High Court that directed attachment of assets of Future Coupons, Future Retail, Future Group Promote Kishore Biyani's assets and issued a show-cause notice for Civil Arrest of Biyani and ...

Media Speculation: Future Retail Ltd (Rs.47.30) will go bankrupt, post the Supreme Court Verdict!! My take : 1st of all the recent Supreme Court verdict has nothing to do with the merit of the case. The ruling was regarding whether SIAC order is enforceable in India or not.  It's not regarding whether Amazon, even being a foreign entity can buy into Future Group or not. Foreign marketplaces (like Amazon) are not allowed to take stakes in inventories in India, as per FDI norms. The market has assumed that SIAC will give ruling favouring Amazon. But that is too much speculation. Isn't it?  Meanwhile, the Future Group is expected to place a special leave petition on the court of law very soon on this issue  Besides, how will Future Retail get bankrupt when:  #When Future Retail is undergoing debt restructuring.  #Amazon has invested Rs.1500 Crore.  #Reliance is giving extended credit.  #Future Retail's e-commerce business is going fine, with 50,000 plus o...

  Winning Strokes The BSE Senses closed at 54,277.72 on last Friday, down 215.12 points (-0.39%), the Nifty ended the day at 16,238.20 up 56.40 points (-0.35%). The indices are likely to consolidate around the current ranges, while the action will be shifted to small and mid cap counters. However, Nifty is expected to slowly crawl up in the coming days.  The stock of Future Retail Ltd (Rs.52.55) , unnecessarily hit the LC on last Friday, when the Supreme Court verdict has nothing much to do with the merit of the case. It was just of academic importance, as it deals with the enforcement of the judgement of an International arbitration court. The way the stock of Future Retail reacted on last Friday, shows that Indian markets are still immature and has low depth. Anyway, Amazon is keenly awaiting for the SIAC verdict which in all likelihood is tentative to come within a couple of weeks. SIAC had set up a tribunal to look into allegations by Amazon that Future Group had not maint...