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.47/47.50 in this week as festive sales pick up steam. Also, I'm expecting an out of court settlement of the juggernaut, which is bruising the company's fundamentals, whatever be the verdict of the SIAC.

According to my view, Amazon can't buy stakes in Future Retail Ltd, as a weapon to control it, because then it amounts to buying inventory.

#Those who have funds should average the shares of Reliance Capital Ltd (Rs.14.80) before it crosses Rs.50. The net loss of Reliance Capital came to be Rs 981.00 crore in the quarter ended June 2021 as against net loss of Rs.1124.00 crore during the previous quarter ended June 2020, showing a marked improvement in its fundamentals. Sales rose 4.36% to Rs.4401.00 crore in the quarter ended June 2021 as against Rs.4217.00 crore during the previous quarter ended June 2020.

#Buy the shares of M&M Ltd on positional basis near the CMP of Rs.775.15 for targets of Rs.827/841/900. SL: Rs.759.90.

It is pertinent to mention her that, Centrum Broking has given a buy call on Mahindra & Mahindra with a One Year Target price of Rs.953. 

On the other hand Motilal Oswal has given a buy call on Mahindra & Mahindra with a target price of Rs.890. According to the brokerage house, MM’s valuations are still at a substantial discount to its five-year average, capturing both the pain points of deterioration in UV market share and the performance of its subsidiaries.

The festive days which begin with Onam in Kerala and Ganesh Chaturthi in Maharashtra, Goa, Karnataka and Gujarat typically generate more than 40% of passenger vehicle demand for a year. 

Moreover, M&M management has taken multiple steps to give a boost to its capital allocation strategy by selling stakes in loss-making subsidiaries and exiting certain JVs or deals, which otherwise would have consumed capital. Also, a turnaround in international farm and auto subsidiaries will aid the company to meet its ROE target. Photo: The Financial Express.