Winning Strokes

The markets are trading in the green as of now. The BSE Sensex was seen trading at 55,561.78 up 97.39 points (+0.18%), while the Nifty was seen at 16,636.00, up 41.10 points (+0.25%). I feel over the next few days, the indices will consolidate around the current ranges, while we will continue to see stock specific actions. Photo: News8Plus.

#The shares of Bombay Rayon and Fashions Ltd (Rs.7.95) Freezed in NSE. Keep holding for targets mentioned earlier.

#The stock of A2Z Infra Engineering Ltd (Rs.10.90) hit another consecutive buyer Freeze. We are likely to see further positive action in the counter. It is a huge company and hence we can expect good returns in the near future.

#Risk taking investors can buy or average out, the shares of Future Retail Ltd (Rs.46.40).

I feel the game is over for Amazon and the Apex Court is likely to give a favorable view on 15 March, 2022. Mukhesh Ambani, is tightening his grip over the company and soon we may hear the news of the Final Deal.

The crux of my recommendation: the Reliance Group had earlier stated that it will honour the agreement with Future Group. It has even pushed back the deal's deadline to September 30, 2022.

Moreover, the lenders are not likely to call for insolvency or any such coercive measures, as it will invariably give them lower recoveries.

The best option at the moment (according to my understanding) for the lenders would be to press Amazon, Reliance Group and Future Group come to an agreement, through talks. It is pertinent to mention here that last week, both Amazon and Future Group agreed in court to hold a dialogue. The next hearing in the matter is scheduled for March 15.

Importantly, in August 2020, when the deal was originally announced, the transaction was valued at around Rs.25,000 crore. The catch is that, when Reliance group had mentioned that it will honour the deal, then we can expect the process to happen around those valuation. 

Also, it is now apparent, that Amazon group has grossly underestimated the prowess of the Mukhesh Ambani controlled Reliance Group.

Therefore, (speculative) Buy FRL at the CMP of Rs.46.40, with a strict SL of Rs.41.60 (Exit) for short to medium term targets of Rs.57/59/66/71.

#Yesterday's recommendation of Steel Authority of India Ltd (SAIL, CMP: Rs.99.65) at around Rs.98, today made a high of Rs.101.85, intraday. The way Commodity prices are rising in the international markets, gives us the liberty to take a positive view on SAIL. The company has mines in Jharkhand, Chattisgarh Orissa and Bengal. 

We can look for targets of Rs.117/121/127/131 in the next couple of months. Remain invested.