Winning Strokes

The benchmark indices continued to move up today. The BSE Sensex was last seen at 61,074.76 up 457.87 points (+0.76%), while the Nifty was trading at 18,189.10 up 133.35 points (+0.74%). However, correction is seen in the mid and small caps, especially those hitting continuous UCs. In this circumstances, I would suggest you to book continuous profits as the indices are near all time highs. 

Also, slowly get out of the junk (momentum) counters and now enter only fundamentally strong scrips.

Today, I'm having mild fever and hence, I wouldn't make this write up too long.

#Exit out of the shares of Wockhardt Ltd (Rs.420), with minimum loss.

#Accumulate UCO Bank Ltd (Rs.13.35), for targets mentioned earlier. This share will give good returns over a period, as the government is likely to do bank capitalisation in this quarter.

#Book profits in A2Z Infra Engineering Ltd (Rs.13.75).

#Book 80% profits in Suzlon Energy Ltd  (Rs.11.85). Hold the rest with a SL at Rs.11.60.

Risky bet: Global Vectra Helicorp Ltd at Rs.63, T: Rs.91, SL: Rs.57.

Triggers: 

• The number of Omicron cases are reducing in Mumbai, which is a good news for the aviation sector.
• The company came out with good set of numbers for the Q2FY22, when the net loss got reduced substantially.
• In September, last year there were media reports that Civil Aviation Ministry had allowed airlines to operate flights at 85% capacity. The Ministry has modified its earlier order on August 12, 2021, stating that the passenger capacity has been increased from 72.50% to 85%.
• The NDA Government is giving special focus on the states with tourism destinations in the country and efforts are being made in prioritizing the tourist destinations in its vaccination efforts as  the government is focused on bringing the tourism destinations to the pre-COVID situation.
• According to Simplywall.com: Global Vectra Helicorp Ltd (Rs.62.80) has Rs.487.50 million of debt as of September, 2021 down from Rs.584.20 million a year back.
• But since it has a cash reserve of Rs.222.50 million, its net debt is a meagre Rs.265 million (Rs.26.50 crore). Or it is almost a debt free company. 
• However, liabilities outweigh the sum of its cash and near term receivables by Rs.5.65 billion. However, the situation is going to change in this CY22. 
• International tourism will be promoted in the country. The government has a special focus on vaccination at destinations like Goa, Himachal Pradesh, Kerala, Andaman and North East. The Central government has also recently taken several steps to encourage foreign tourists. Photo: Just Dial.

#Accumulate the shares of Shriram EPC Ltd (Rs.10.10), after the price stabilises. 

#Buy the shares of Union Bank Ltd at Rs.45.55, T: Rs.85/Rs.91, SL: Rs.41.

#Buy Union Bank Ltd at Rs.45.55, T: Rs.85/Rs.91, SL: Rs.41. 

As mentioned earlier, I'm bullish on the banking sector, especially in the PSB space. I've given you two names, you can invest in other fundamentally strong banking scrips too, especially from the PSU basket.