Winning Strokes

Yesterday, the BSE Sensex closed at 57,426.92 up 1,016.96 points (+1.80%), while the Nifty closed the day at 17,094.35, up 276.25 points (+1.64%). In the recently concluded meeting, the RBI maintained its full-year inflation forecast at 6.70% but lowered its growth estimates marginally to 7% from 7.20%.

Last week the Nifty managed to get back  above the psychologically vital 17,000 mark as well as its 200-day simple moving average (around 16,990), with crucial support at 16,750. I hope this week Nifty will be able to maintain this level, with occasional bouts of buying and selling. 

#The fall in coal prices will help the power sector stocks. While the power tariffs will remain same, the fall in coal prices would add considerable power to the bottomlines of these companies. Stay put in RTN Power Ltd (Rs.4.35), Reliance Power Ltd (Rs.16.40) and Adani Power Ltd (Rs.373.50).

The market cap of RTN Power Ltd is only Rs.2,336 crores. Moreover, the company has good land bank, which we will see below. 

Amravati Power Plant is spread over 1350 acres of land at MIDC Industrial Area. Nashik Thermal Power Plant in situated near Sinnar, 40 kilometers from Nashik city in Maharashtra, India. 

The plant spreads over an area of 1,040 acres has an installed capacity of 1,350 MW. Sinnar Power Plant has coal linkages from Coal India Limited (CIL) subsidiaries.

RTN Power Ltd hopes to become debt free within a couple of years. Hence, buy and hold the scrip for 2 - years.

Meanwhile, Adani Power Ltd, the India’s largest private thermal power producer’s 100% acquisition of Diligent Power Private and DB Power has been approved by the competition watchdog Competition Commission of India. The company announced to acquire DB Power for Rs.7,017 crore in last August. .

#The textile companies will witness new contracts from this month. The last period was marred by high cotton and crude prices. While the crude oil prices are still near $80 per barrel, the cotton prices have come down considerably in the last few months. 

A Hindu Businessline report of 30 September, 2022 states that, "Rates down over 35% from the peak seen in May as spinning mills expect further fall.

Trade sources estimate the daily market arrivals in the range of 25,000-30,000 bales (170 kg) and prices are seen softening ahead of peak arrivals in mid-October." Remain invested in good cotton scrips. I've already recommended two textile stocks, which are also owned by the ace investor, Dolly Khanna: Nitin Spinners Ltd (Rs.217.80) and Nahar Spinning Mills Ltd (Rs.306.45).

If you want to maximize your returns from the sock market investments, then you can go for my profit sharing mode; wherein the profit will shared in the ratio of 70:30, between you and my business concern 

In such cases you need to compulsorily open a demat account in my associate brokerage house, with a minimum portfolio size of Rs.2 lakhs. The working capital would be invested in delivery based scrips with occasional F&O trading. Hence, the chances of making gains over a period is good. For details kindly send me a mail at: sumonbombay@gmail.com.

#Post monsoon, the construction activities will commence in full pace. Moreover, the fall in the price of Steel and Cement will help the bottomlines of Construction companies. Keep accumulating the shares of Dilip Buildcon Ltd (Rs.220.80) and my old favourite A2Z Infra Engineering Ltd (Rs.10.30). 

Dilip Buildcon last week said it was declared as the lowest bidder for Phase-2 of Ahmedabad Metro Rail project in the state of Gujrat. The company has an order book of ~Rs.25,000 crores.

Dilip Buildcon is a full-service infrastructure company with construction capabilities in roads & bridges, mining, water sanitation, sewage and dams with a presence in over 19 states. The stock would give Multibagger returns from here.

I'll speak with my sources in A2Z Infra Engineering Ltd, this week. The company's June, 2022 quarter numbers were good on Q - o - Q basis. The company also installs Telecom Towers. The 5G Telephony will require lot towers. Accumulate both the shares during market dips.

#Short term traders can do ranlge play in the stock of Swan Energy Ltd (Rs.223.50). This is a huge Company, run by one of Narendra Modi's blue eyed boys.