Market Pulse

The Key indices trading with tiny gains in morning trade. The BSE  Sensex is now trading at 33,579.66 up 18.11 points (+0.05%), while the NSE  is now trading at 10,351.75 up 9.45 (+0.09%) points amid mixed Asian cues.

On the macro front, in order to review the Income-tax Act, 1961 (the Act) and to draft a new Direct Tax Law in consonance with economic needs of the country, the Government yesterday, 22 November 2017, has constituted a task force with Arbind Modi, Member (Legislation), CBDT-Convener. Dr. Arvind Subramanian, Chief Economic Adviser (CEA) will be a permanent special invitee in the task force. The terms of reference of the task force is to draft an appropriate Direct Tax Legislation keeping in view; the direct tax system prevalent in various countries, the international best practices, the economic needs of the country and any other matter connected thereto.

Overseas, Asian stocks were mixed. In US, the S&P 500 index and the Dow Jones Industrials Average ended slightly lower yesterday, 22 November 2017, maintaining a soft tone after the Federal Reserve minutes indicated that an interest-rate hike is likely but the pace of future tightening could be more moderate than expected given muted inflation. The Nasdaq Composite Index bucked the broader trend to finish at a record, logging its third gain in a row.

The Fed viewed a “near-term” increase in interest rates as possible but central bank officials also expressed concerns about persistently low inflation, hinting that the bank may dial back its rate increases in 2018. The minutes also showed that several members worried that keeping interest rates too low could create a financial bubble.

US durable-goods orders fell 1.2% in October. Excluding transportation orders increased 0.4%. Initial jobless claims a tool to measure US layoffs, fell by 13,000 to 239,000 in the week ended 18 November. The University of Michigan's latest read on consumer sentiment came in at 98.5, topping expectations.

#Today RCom Ltd touched Rs.14.10, intra-day, which is an excellent opportunity to exit the counter. I still maintain sell on rise strategy on Reliance Communications Ltd, with no visible sign of takeover by the giants in the industry, at least in the short term.

#Today Jai Balaji Industries Ltd touched Rs.14.25. It is now a takeover candidate, after Bhusan Steel Ltd (Rs.74). I am looking for a medium term target of Rs.31-32, as the steel sector gathers momentum.

#B F Utilities Ltd today touched Rs.546,95, intra-day. You can book 75% of profits and hold the rest with a SL of Rs.522. The stock has a strong resistance around Rs.545-553 band.

#SKM Egg Products Ltd today touched Rs.106.45 and is now trading at around Rs.102.40. You can keep holding as long as Rs.96 is not broken on the downside. The egg prices have maintained their uptrend, and this positive effect will be seen in Q3FY18 results.

#Gitanjali Gems Ltd recommended around Rs.66-67, last month today touched Rs.86.45 and is now trading near the days high. You can hold the stock, with a SL of Rs.81, for targets of Rs.87-91. 3rd and 4th targets of Rs.87 & Rs.91 respectively, has been achieved in case of Gitanjali Gems Ltd as it made an Intraday high: of Rs.92.35. Book complete profit and wait for dips  to enter again.

#Yesterday, a buy call was given on Shilpi Cable Technologies Ltd (Rs.14.90) at around Rs.14.45, mentioning that the correction might be over. Today the stock touched Rs.15.15, intra-day. You can still add on declines with short term targets of Rs.17-19.

Today's Calls:

1. Buy GSFC Futures on declines around Rs.142- 142.50, SL below Rs.139.50, T: Rs.146. Book Profit around Rs.144.

2. TATA ELXSI recommended yesterday around Rs.947 has touched Rs.965 -- Book Part Profit.

3. Buy Chennai Petro around Rs.426, SL: Rs.417, T: Rs.441 on T+2 basis.

4. Buy A2Z Infrastructure Ltd at around Rs.37.50-38, for short term targets of Rs.41-42. Book Partial Profits at around Rs.39.50 and hold the rest with a SL of Rs.37.

5. Intraday SHORT COPPER at around Rs.448.80, SL above Rs.451,  T: Rs.445.30 [Risky Call].  Book Partial Profit in Intra-day SELL call on Copper, CMP 447.20. Trailing SL above Rs.448.80.

6. Buy TVS Motors (CMP: Rs.734.55) on declines around Rs.731-732, SL below Rs.723, T: Rs.746-752. It reached Rs.730.50 intra-day, after recommendation. Hope you have entered the scrip. Book Full Intraday profit at Rs.737.40.

7.  BTST/T+1: Buy ZEE Limted at around Rs.564.50, SL: Rs.554, T: Rs.578-584.

-- with inputs from Capital Market - Live News

Market Pulse

Indian market opened higher on firm Asian cues and is still maintaining that trend. Sensex is now trading in the green, though in between the stocks pared gains and slipped into the red. Overseas, Asian shares joined the global rally as strong world growth and rising corporate profits lured hordes of investors into equities. US stock-market indexes ended at records and near session highs yesterday, 21 November 2017, finding support on another round of strong earnings, with technology shares leading the way. The Chicago Fed national activity index rose to 0.65 in October from 0.36 in September. Sales of previously-owned homes jumped to a seasonally adjusted annual pace of 5.48 million in October. Meanwhile, Steel-dependent metal nickel posted early gains on Tuesday in both Shanghai and London markets in step with a stronger showing in Chinese steel futures.Nickel is chiefly used in making stainless steel.
I am of the belief that Moody's rally would continue for some more days, as the NDA government continues with its reform agenda. The the BSE Sensex is now at 33,523.23 up 44.88 points (+0.13%) and NSE is at 10,330.50 up 3.60 points. (+0.03%).

Today's Calls:

• Intra-day: Sell Chennai Petro at around Rs.411.50, SL: Rs.418, T: Rs.402-399.
• Buy Tata Motor Futures at around Rs.432-433, SL below Rs.428, T: Rs.438.
• Buy Cummins at around Rs.855, SL: Rs.846, T: Rs.872-879, on T+1 basis. Book part profit at Rs.867...
• Buy Tata Elsxi at around Rs.946-947, SL: Rs.920, T: Rs.975-985, on T+4 basis.

The stock of SKM Egg Products Ltd (Rs.100.40), which rose from the recommended price of around Rs.78-79 to more than Rs.115 in just 2 days, is currently consolidating. In the last one month, egg prices in the country recorded a huge jump, soaring as much as 40%. Every year, egg prices moves north due to increase in demand, during the winters; however, the rise has been phenomenal.Those who are still holding the shares should put a strict SL at Rs.96. I had asked for profit booking at around Rs.115.

The investors can buy the shares of Jai Balaji Industies Ltd at around Rs.13.50 (BSE) for targets of Rs.29-31, in the medium term. It is now a takeover candidate by established players. Moreover, with June quarter revenue of Rs.538.65 crore, Market Cap of only Rs.130.60 crore and loss trimming down to Rs.38.04 crore against Rs.55.14 in Q2FY17, I feel the stock is a good investment play on the Indian infrastructure sector.

The stock of B F Utilities Ltd, which I recommended on 23 August, 2013 at around Rs.129-130, today touched Rs.527. Congratulations to the long term investors, who are still holding the scrip.

The stock of HDIL, which was recommended few weeks back at around Rs.52-53, is now consolidating above Rs.62, for the next round of upmove. The share recently touched Rs.66, before  correcting a bit. The next targets for the scrip is Rs.72, if it manages to close above Rs.67.50.

Buy the shares of Shilpi Cable Technologies Ltd at around Rs.14.45, for targets of around Rs.17-19. Since some days, the telecom stocks are doing well. The short term correction in the scrip seems to be over.

The scrip of Gammon Infrastructure Ltd, which was recommended around Rs.2.90 is doing well today and is now trading at around Rs.3.15. Gammon Infrastructure is a subsidiary of the infrastructure major Gammon India Ltd (Rs.6.87). If you are not comfortable with Gammon Infrastructure Ltd, then you can opt for the the shares of parent company, Gammon India Ltd -- Buy on market dips.

Crude Oil prices rose on Wednesday as ongoing cuts of piped Canadian crude to the United States added to falling U.S. crude inventories, while expectations of a prolonged OPEC-led production cut also offered support. Those who have invested in the shares of shares of Aban Offshore Ltd at around Rs.191 (CMP: Rs.202), can keep holding  for short term targets of Rs.207-209. SL: Rs.96.

Gitanjali Gems Ltd (Rs.80.50) recently recommended around Rs.67, today touched Rs.84.55. Those who are still holding the scrip can book 80% profit and hold the rest with a SL of Rs.78, for the next logical target of Rs.87. Gitanjali Gems Ltd was recommended many times earlier too, below Rs.50. You can search my blog, for previous recommended prices of Gitanjali Gems Ltd.

You can buy the shares of J P Associates Ltd at around Rs.19, for short term target of Rs.21. If it manages to close above Rs.22, in the next couple of days, then we can look for target of Rs.25-26.

DO YOU KNOW?

B F Utilities Ltd, which was recommended around Rs.129-131, made a 52-week high of Rs.890, on 10th March, 2015. The scrip today closed at Rs.775.20. 

The risk taking investors can still hold the shares of the company for a target of Rs.920, keeping a SL of Rs.660. The stock gave a superb return of more than 6 times in just one year. 

 FIIs’ favourites turn turtle on sell-off

[Editor: I feel it is not true that the FIIs have increased their stake in Anant Raj Ltd and it is because of this factor, the scrip fell. In fact both the FIIs and DIIs have decreased their stake marginally in Anant Raj Ltd according to the latest shareholding pattern put up in the Bombay Stock Exchange website. It would not be an exaggeration to mention here that many of the companies where FIIs have actually increased their stake like Amara Raja Batteries, Aurobindo Pharma, Dr.Reddy's, Hathway Cable, Persistent System, LIC Housing Finance, Torrent Pharma, Zee Enterprise. etc. did not go for such massive selling as compared to Anant Raj Ltd nor are they trading near their 52-week low price. Moreover, the point to ponder is that, the stock of an A-group company cannot fall near its 52-week low price,  after coming up with such brilliant September, 2014 quarter numbers unless and until there is a foul play somewhere; which the regulator/s failed to detect till now. I again reiterate, there must be some game going on somewhere which the regulator/s could not detect till now, in case of Anant Raj Ltd. This is the most unfortunate part of regulation, of the Indian bourses. The Delhi-based firm Anant Raj Ltd has 11 hotels, out of which, 6 hotels are completed while 5 other hospitality projects are under construction. Anant Raj leases its commercial properties -- office, shopping malls and hospitality projects -- to obtain steady cash flows. It has also leased out some of its hotels to hospitality firms - Mapple Group and Royal Orchid. Among major projects, the company is developing a township spread over 160 acres in Gurgaon, with an expected sales realisation of Rs.5,900 crore over the next 3-5 years.]
January 6, 2015: It was a black Tuesday for Indian equities, as the country’s benchmark indices — Sensex and Nifty— nosedived over 3 per cent in trade. The sell-off was broad-based with 474 stocks out of the CNX 500 Index declining. Two-third of the stocks that fell were those in which FII holding (as of September 2014) was higher than the year-ago period.

Realty worst hit

Among those that fell the most were real estate stocks, which were FII favourites in 2014. DB Realty plummeted 8.7 per cent. Foreign institutions had upped their stake in this company from 5.79 per cent in September 2013 to 9.11 per cent as of September 2014.

Likewise, the stock of Indiabulls Real Estate, which saw buying interest from FIIs in 2014, fell over 7 per cent. As of September 2014, foreign institutions held 28.93 per cent stake in the company, 3.2 percentage points more than in September 2013. 

Other realty stocks which were bought by FIIs in 2014 and figured prominently in the losers’ list include HDIL and Anant Raj Industries. Both stocks lost in excess of 6 per cent on Tuesday.

There were big losers in other sectors, too. The stock of garment manufacturer Arvind, in which FIIs had raised stake to 23.5 per cent by end-September 2014, from 15.7 per cent in September 2013, lost 6.7 per cent.

Likewise, the stock of J Kumar Infra Projects, wherein the FII holding almost trebled to 17.9 per cent as of September 2014 from 6.17 per cent in September 2013, lost 6.5 per cent.

Other FII-favoured stocks that gave up gains include BF Utilities (6.6 per cent), Tata Sponge Iron (6.2 per cent), Hotel Leela Ventures (6 per cent) and Bharat Forge (5.7 per cent).

Vulnerable to trends

The free fall in crude oil and subsequent strain on oil-based economies not only poses a risk to incremental FII flows into India but can also trigger profit-booking by foreign institutions. The stocks of companies that are heavily owned by FIIs may be more vulnerable to negative global developments.

Which are they? HDFC tops the list; FIIs held 77.85 per cent in the company as of September 2014. FIIs owned more than half of Zee Entertainment’s equity. Other companies in which FIIs had more than 45 per cent of the total equity include Shriram Transport, IDFC, Hubtown, Axis Bank, United Phosphorous, YES Bank and KPIT Technologies.

Courtesy: The Hindu Business Line

WINNING STROKES: THINK DIFFERENT

Pipavav Defence and Offshore Eng Ltd, a Nikhil Gandhi company hit the 3rd consecutive buyer freeze today. The stock was recommended around Rs.38.75, a few weeks back. The scrip after giving a break out is moving up continuously; today it closed above its 21D SMA and EMA. 

Gitanjali Gems Ltd was given a buy call today at Rs.61.90, after my sources confirmed of its bright future outlook. The company has taken a number of measures to revamp its operations. Besides, falling international gold prices and the subsequent correction in India, could give a surge in demand for the yellow metal. Some analysts expect, that gold prices this Diwali could hit 3 year low. In May 2014, RBI eased import restrictions on Gold. The central bank permitted private agencies and banks to provide gold loans to the sector. But, the government has not lowered the import duty which is at 10%. According to The Indian Express, October 12, 2014:

Much to the delight of jewellers, Indian consumers are making a scramble for gold in the build-up to Diwali on October 23 after a lacklustre festive season last year.

Sales of gold jewellery and coins in October so far have accelerated in the range of 15-25 per cent more than a year before, although it is still early to firm up a precise forecast of demand this Diwali and Dhanteras, considered auspicious for the precious metal purchases. “After months of slowdown, things are finally beginning to look up,” a spokesperson for Tanishq, the country’s largest jewellery chain, said. “All the purchases that people had postponed are finally being made,” he said, adding that lower gold rates in recent days had helped accelerate demand.

B F Utilities Ltd, which was recommended around Rs.129-130, today closed at  Rs.647.15, up 18.31%. Intra-day, it hit the Upper Circuits at Rs.656.40. The stock earlier hit an all time high of Rs.817.95, in between.

IVRCL Ltd as was expected did  not break Rs.16, on the downside--some inputs were sent to the PAID GROUPS yesterday. Now, with September CPI inflation declining to 6.46% and vegetable inflation falling to 8.59%, the scrips in the infrastructure/road construction sector, could stage a comeback. 

Updates on some of my recommendations

1. Granules India Ltd, was recommended around Rs.110-112.50.

The scrip touched an all time high around Rs.940.55 on 22/09/2014 (on my birthday). 

2. Multi Commodity Exchange of India Ltd (MCX Ltd) was recommended around Rs.255-270. The scrip made a high of high of Rs.895, on 21/07/2014.

3. B F Utilities Ltd was recommended around Rs.129-130. The scrip made a high of Rs.817.95 on 22/07/2014.

4. Mannapuram Finance Ltd was recommended around Rs.15.50--17.70. The scrip made a high of Rs.31.60  on 19/09/2014.

5. Opto Circuits Ltd was recommended around Rs.25.50-26. The scrip made a high of Rs.44.50 on 22/05/2014.

6. HCC Ltd was recommended around Rs.12.70-12.80. The scrip made a  high of Rs.49 on  01/07/2014.

7. P C Jeweler Ltd was recommended below Rs.88. The scrip made a high of Rs.278 on 23/09/2014.

8. Sarda Energy and Minerals Ltd was recommended around Rs.107.60. The scrip made a high of Rs.402.60 on 21/08/2014.

9. A2Z Maintenance and Engineering Services Ltd was recommended around Rs.11.45. The scrip made a high of Rs.36.40 on 25/07/2014.

10. Prakash Industries Ltd was recommended around Rs.49-50. The scrip made a high of Rs.123 on 21/07/2014.

These are some of scrips which gave good returns to the investors over a period, apart from others like IVRCL Ltd, Entegra Ltd, SBTL, Gitanjali Gems Ltd, IRB Infrastructure Ltd, Ahmednagar Forgings Ltd, etc. 

Today, while Pipavav Defence Ltd (Rs.39.15) and Resurgere Mines and Minerals Ltd (Rs.1.65) hit the buyer freezes; Gitanjali Gems Ltd (Rs.63.15) also closed above some crucial levels. 

Pipavav Defence and Offshore Engineering Company last year announced a new order for offshore vessels from a European client. The order was worth Rs.595 crore with an option to supply two more specialised vessels valued at Rs.1200 crore. The global market for specialised offshore vessels stands at US$10 billion. The company, with its well diversified order book among the defence, commercial and offshore segments, intend to focus on the defence and offshore vessel segment. The defence segment holds around 50% of the order book followed by the commercial segment and offshore segment. New orders in the offshore segment coupled with repairs and maintenance orders augur well for the company as it reduces exposure to the commercial segment. Pipavav Defence and Offshore Engineering Company spanning over 861 acres of land with two dry docking facilities of 662 m x 65 m (Dry Dock-1) and 750 m x 60 m (Dry Dock-2 under construction) is one of the largest “modular” shipbuilding facilities in India. The shipyard is capable of accommodating 400,000 dwt capacity ships along with construction and repair of a wide range of vessels starting from coastal and naval vessels together with repair and fabrication of offshore platforms and rigs. It also has a dedicated offshore yard with 175 m x 16.89 m quay consisting of both launching and loading platform together with installation of bollard and mooring rings. 

Market may see some technical rebound on Monday: Jayant Manglik ?

[Editor: On last Friday, I have already given a buy on Nifty_Futures from the support levels. Investors should start investing funds in the markets as of now, because going forward, the fundamentals of the economy is expected to improve. Also, any loss which you made earlier, can be covered up in just few trades. For example look at the the share price of B F Utilities Ltd (Rs.412.90), which closed at the Upper Circuits on last Friday even though the Indices tanked. If you remember, it was recommended around Rs.129-130, only few months back. In a similar way, money can be made over a period of time, through many such scrips---what is needed is only patience and expert hand]

Indian markets settled 1% lower on Friday as weak IIP and higher retail inflation raised concern over possible rate hike on December 18. In addition, concerns over possible Fed tapering in December also weighed on the investors' sentiments. Banking, power and realty stocks led the fall in the market.

At the close, the benchmark 30-share index, BSE Sensex declined 210.03 points or 1% at 20,715.58 with 24 components registering drop. Meanwhile, the broad based NSE Nifty fell by 68.65 points or 1.10% at 6,168.40 with 46 components posting drop.

Commenting on the outlook, Jayant Manglik, president-retail distribution, Religare Securities said, "On the last trading session of the week, Nifty was seen struggling from the beginning and kept the negative bias intact till the end. It was seen as reaction to double whammy of contraction in IIP and surge in Consumer inflation. Moreover, sentiments also remained dampened after RBI Governor Raghuram Rajan showed concern over rise in inflation and weak industrial growth and vowed to adjust the credit policy carefully. 

Due to successive decline in the last four sessions, we may see some technical rebound on Monday especially in oversold positions. The immediate support at 6100 in Nifty strengthens our stance. 

The recent decline in Midcap and Smallcap segment has somewhat pushed the retail investors on their back foot again. However, we are advising our clients to keep a slightly longer investment horizon and accumulate quality stocks irrespective to these corrective phases." 

Courtesy: www.myiris.com

WINNING STROKES: THINK DIFFERENT

B F Utilities Ltd recommended around Rs.131-132, today hit the buyer freeze at Rs.230.60. However, I got many of your mails that you missed the counter.  Yes, this counter is always unpredictable and very volatile, so it is always risky to put safe money here. Those who have bought the scrip are lucky and now should book profits. 

Today, to the surprise of everyone, Future Retail Ltd (Rs.71.95) crashed in the bourses and closed below some of its key moving averages (but still 21 DSMA > 50 DSMA). I immediately called on the sources, to find out if there is something untoward happening, but all confirmed nothing of that sort. Therefore, it is widely felt that the shares of Future (Pantaloon) Retail Ltd. probably reacted to the bad results of its group company, Pantaloons Fashion Retail Ltd (BSE Code: 535755) but what they forget to see is that while in Future Retail Ltd the PROMOTERS HAVE INCREASED THEIR STAKE / HOLDINGS in the September, 2013 quarter, from the June, 2013 quarter, the same was not seen in the latter, though there was a minuscule rise in the FII holding, speaking sequentially. Therefore, street is of the belief that this fall is artificial and the stock should recover, in the coming days and a target of Rs.91-92 cannot be ruled out; provided Q2FY14 results are not too dismal. IDFC Securities Lt says in its results preview for the September, quarter, "The results for Future Retail will only reflect the value retail piece (Big Bazaar and Food Bazaar, Home Town, E-zone) and hence not comparable. We expect about 8%, like-to-like growth for the entity led by strong sale season in July and August".
Today Manappuram Finance Ltd (Rs.15.73), hit the upper freeze after the news of buoyancy in gold prices, were published in Economic Times. But, it is doubtful how long will this rally survive in the counter, after RBI put up lot of barriers in the business of Gold Loan Companies. Besides, even if the RBI does not go for a Repo rate hike, still it will not be positive for the Banks and NBFC sector--the move can at best be said sector-neutral. Therefore, take your decisions accordingly. However, if anyone is betting for the long term then this is an idea scrip. Having said, this I would like to point out that then you need to define your long term, because there are scrips, listed in the BSE, which are near their all time lows evem today, after the historic crash of 2008. 
 Note: My computer system is has been hacked, hence, I am only getting partial service. Till my service engineer comes post "Deepawali", the FREE SERVICE of this blog could be affected. Kindly bear with me. Meanwhile, those who would be joining my recommended brokerage house/s till 31st October, 2013, will now be allowed FREE PAID SERVICE, with only ONE LAKH, portfolio size. So, rush in for your details. Those who have already applied please wait for sometime for your forms to get processed. You will be informed in mobile, as soon as your demat / trading accounts are opened.  JOIN ME NOW. 

Market Mantra

United Breweries Ltd recommended around Rs.732-733, today touched Rs.851.70. The scrip was recommended a couple of weeks back on some positive development in the company. 

HDIL and JP Associates Ltd which were recommended reached their respective 2nd targets of Rs.39. It is time to book at least 80% profits in both and wait for the ultimate targeta of Rs.42 in both the scrips. Meanwhile if HDIL closes above Rs.44, then we could see a rally upto Rs.51. 

Today's Call: Buy Dena Bank Ltd at Rs.48.30, T--Rs.62, SL-Rs.41.80. Among the public sector banks, this is one of the best banks. In the June, 2013 quarter its EPS is Rs.5.40, which gives a natural target of Rs.110-115 for the scrip in the short term. The scrip of SAIL is not performing even through INR is doing fine. Hence, if one wants to interchange it with Dena Bank Ltd, they can do it. 
Manappuram Finance Ltd today touched Rs.17.85 and is now trading at Rs.17.50. As long as the gold price does not crash, this stock is expected to move up slowly. Moreover, there is around only 2% delinquencies, and hence, there is much safety in the counter. My close sources, the company is expected to post better results in Q2FY13, compared sequentially. According to a marketman, when gold prices move up, 1stly, the NPL of the gold loan companies, start to come down, i.e  the recovery rates start to move up. 2ndly, the amount which one can disclose on a similar quantum of gold, starts to move up. So overall gold prices moving up is positive and that is what the market is trying to price in.
Karnataka Bank Ltd which was recommended around Rs.78-79, today touched the 2nd target of Rs.88. In a similar way, B F Utilities Ltd touched its first target of Rs.139 (intra-day high of Rs.141)

WINNING STROKES: THINK DIFFERENT 

B F Utilities Ltd reached the 1st target of Rs.139, as it touched Rs.140.70 intra-day. The scrip was recommended last week around Rs.127-128. 

MCX Ltd hit another buyer freeze, even though the market tanked. I however, feel that it is time to book some profits. The stock closed at Rs.411.10.

Manappuram Finance Ltd unexpectedly hit the lower circuits today, though the price of gold rose due to tensions in the middle east. Safe-haven buying lifted the price of gold on Tuesday after an Israeli missile test ahead of a possible U.S. strike on Syria. This fall in the price of the share of Manppuram Fiance Ltd, seems to be artificial as it lacked the required volume and sales mostly came through delivery based trading. I would basically consider it profit booking and ask you all to accumulate the scrip at the CMP of Rs.18. Muthoot Finance however closed flat at Rs.112.50. CLICK HERE. 
Geometric Ltd recommended some days back at Rs.76-77.50, today touched Rs.80.50. This is tune with the over-all buoyancy seen in the IT counters. 
DLF Ltd today touched its first target of Rs.139, as it rose to Rs.139.75 intra-day. The scrip however closed at Rs.127.40, due to massive speculative selling in the Indian bourses. 
Join my recommended BROKERAGE HOUSE and get assistant during the market hours. If you are interested then do send me a mail at suman2005s@rediffmail.com. 

Mid Market Chart Check

[Excerpts of my mid-day inputs to the clients]

Market experienced buying at lower levels. A gap down opening took the Nifty to a low of  5118.85 during first few hours of trade. However, strong buying at lower levels pulled it to a high of 5317.70. Finally it settled almost flat. 
Due to over sold situation in short term and subsequent short cover, the  F&O expiry is expected to be closed in the positive today.  Since the morning, there has been relentless buying in the Indian bourses, after the INR appreciated against the USD. However, what is to be noted is that till now the rallies are proving to be short lived and are getting exhausted quickly. On the other hand lower level is attracting buying interest also. This has resulted into extreme volatility on the either side of the spectrum. However, it seems there are now some hope of Nifty going to 5700 levels by the end of September, which is normally a good month for the BULLS. 

Resistance: 5425 / 5475
Support: 5350 / 5300.

Today' Call: Buy J P Associates Ltd (BSE Code: 5325322) at Rs.33-33.40, T--Rs.39, Sl-Rs.29. The news is that Aditya Birla Group is close to concluding a deal to buy out the company's cement plant in Gujarat for close to 35 bln rupees (Rs.3500 Cr), which could be announced anytime from now. Please remember, last time on such a news, the scrip rallied from Rs.51 to around Rs.90 plus. Those who wants to take  a small risk then they can try Rs.40 Call of J P Associates Ltd at Rs.1.40, for a target of Rs.3-4 in the next 30 days. But do keep a SL of Rs.0.80 paise for any down move.  CLICK HERE & CLICK HERE. 
MCX Ltd which was recommended around Rs.255 and Rs.272, last week is today locked at the Upper Circuits at Rs.256.15. The is near the first target. 
Those who have earlier taken B F Utilities Ltd at Rs.128-128, or later, bought it around Rs.118-120, when it fell can continue to add on to their positions and wait for the scrip to cross Rs.200. Today, I am told that an advisory service has recommended the scrip, as a buy for a target of Rs.163.Today the scrip already touched Rs.134.40.
Those who have entered VIP Industries Ltd yesterday, are suggested to exit the counter at around Rs.47.80-48 or either with small profits, or with cost price, because the stock is not performing as expected, even as the INR appreciated against the USD. It was recommended yesterday, on the two premises: 
(i) Ace investor, Rakesh Jhunjhunwala has increased his holdings, mostly probably banking on the revival of sales from the CSD business of the company. 
(i) Any appreciation of the INR against the USD would be positive for the company as it imports around 80-85 % of its products. 
However, the stock did not react too much on the positive side, may be because the price of crude has risen, on the fear of another war in the middle-east. 

AFTER MARKET OPENING CHART CHECK

Photo, Courtesy: Faking News

In an extremely bearish move following the passing of the FSB, the Nifty, it fell down to 5274 and closed with a huge loss of 189 points. A gap down opening was followed by sustained selling till end, with no respite, with a total absence of any intra-day upward correction.
Market is in confirmed down trend and scary target of 4800-4900 are talked about in sundry analyst circles. Shares are making new lows every day and even BLUE CHIPS are now spared. Rallies are  generally short lived and get exhausted quickly. The pace of fall is much higher than rise the rise.  3-4 days of rally had been corrected by single day of fall. Much of the fall is due to self-inflicted pain created by our "Tughlak-ian" UPA Government and its anti--people policies. The main opposition BJP only gave Lip-opposition to the FSB (Ironically called, "Vote Security Bill"), which clearly indicates, what each political entity, ultimately espouses, internally--much of what we see outside is only their masks. However, the voters have to choose the lesser evil among them. In such a scenario it is puerile to take long positions in Nifty_Futures, except playing on the range 5120--5165. What the investors/traders can do now, is to go for staggered buying in some of blue chips, like BHEL (Rs.107-108), L & T (Rs.686-687), B F Utilities Ltd (Rs.120), VIP Industries Ltd (Rs.46-47), etc.

Resistance: 5220 / 5250

Support: 5150 / 5110.

MCX Ltd hit another buyer freeze in the opening trade. The scrip was recommended last week at Rs.255-256 and Rs.271-275, when it came out of the circuits.

Manappuram Finance Ltd today touched the first target of Rs.17 (touched Rs.17.73) and is now going for usual correction. The investors/ traders who have purchased earlier should book profits.

Today's call: Buy VIP Industries Ltd at Rs.46-47, for a price target of Rs.52-57-62, SL--Rs.41. VIP Industries has reported a standalone sales turnover of Rs.326.90 crore and a net profit of Rs.23.00 crore for the quarter ended June '13. Other income for the quarter was Rs.0.60 crore. For the quarter ended June 2012 the standalone sales turnover was Rs.302.60 crore and net profit was Rs.23.50 crore, and other income Rs.0.30 crore. Please use stop losses strictly, because in this market, one never knows where a scrip can go on the downside. VIP Industries is engaged in manufacturing of moulded luggage (from high-density polyethylene), soft luggage (from nylon, polyester, jupolene, printed polyester) and ABS luggage (from acrylonitrile butadiene styrene plastic) including briefcases, suitcases, handbags, carry bags and vanity cases. VIP Industries, Asia’s No. 1 luggage manufacturer, had earlier announced the appointment of McCann Erickson as its creative agency for VIP brand. The company also said that it is currently scouting for a creative partner for its Skybags brand. The business has moved both its brands, VIP and Skybags, from its incumbent agency, Ogilvy & Mather. Established in 1971, VIP Industries sells nearly five million pieces of luggage a year. The state-of-the-art VIP Design Lab is credited with multiple international patents and design registrations. The company’s latest launch, VIP Verve, is a stylish, lightweight polycarbonate luggage, and was awarded the prestigious ‘Product of the Year’ Award for 2011-12. CLICK HERE.

Those who are holding Manappuram Finance Ltd at around Rs.14-80-15, are suggested to book profits and wait for the scrip to cross the bottle-neck area of Rs.17.70-17.80.

WINNING STROKES: THINK DIFFERENT

Please Click on the Chart to Expand

MCX Ltd hits the buyer freeze in the opening trade. Those who have taken risk yesterday, must be happy. But, safe investors, should be very careful playing these kinds of counters. Today, the stock got locked in the UC, at Rs.293.05 in the  NSE.

Manappuram Finance Ltd recommended yesterday at Rs.14.80-15, today broke out its long term chart pattern and is moving towards the next intermediate target of Rs.17.50-17.70, before touching Rs.21, in the next few trading sessions. With import restrictions on, the price of Gold is not expected to come down very quickly. In such a scenario, the companies like Manappurram Finance Ltd is expected do well. The scrip today closed at Rs.15.30. CLICK HERE & CLICK HERE.

B F Utilities Ltd confirmed the break-out today, in the daily charts. It seems on Monday it will open a gap up and try to move towards the next target of Rs.145-147, and then subsequently cross Rs.200, in the next few trading sessions. Buoyancy in the wind power sector and the government's thrust in the infrastructure, is positive for the company. Moreover, the new government in Karanataka could also, help solve some of its pending matters. 

BF Utilities Ltd: Buy

BF Utilities Ltd posts profit of Rs.2.61 crore for the period ended June 30, 2013.

BF Utilities Ltd has announced the Financial Results for the period ended June 30, 2013.

The company has reported Net Sales / Income from Operations of Rs.7.62 crores for the quarter ended June 30, 2013 against Rs.6.77 crores for the quarter ended June 30, 2012.

The Net Profit / (Loss) was at Rs.2.61 crores for the quarter ended June 30, 2013 against Rs.2.01 crores
for the quarter ended June 30, 2012.

The company has reported an EPS of Rs.0.69 for the quarter ended June 30, 2013 as compared to Rs.0.53 for the quarter ended June 30, 2012.

Sequentially speaking the results of the company were superb for the quarter ended June 30, 2013. In March, 2013, quarter the company came out with net sales of Rs.3.71 Cr and net LOSS of Rs.1.48 Cr. CLICK HERE. 

Buy the scrip at Rs.129-130, for a target of Rs.145-147. Keep a tight stop loss of Rs.117. The change in stance of the RBI policy, will help such companies. Also, new government in Karnataka, could be positive for the company.
Note: The Scrip was recommended yesterday, to the Paid Group members and this is yesterdays' report. It has already moved to Rs.135.90 and could cross Rs.200, within the next few days.

Market Mantra

Reliance Mediaworks Ltd(Rs.51.90) hits the buyer freeze in the mid afternoon trade. The scrip was recommended repeatedly in this group. Reliance Broadcast Network Ltd (Rs.28) could also hit the buyer freeze today, as most of the ADA Group (Anil Ambani Group) stocks are moving up in high speed. 
The construction companies are moving up today, in anticipation of the RBI going for another round of rate cuts in the next policy meet. Some of my favourite counters like IVRCL Ltd (Rs.20.70), B F Utilities Ltd (Rs.260), Punj Lloyd Ltd (Rs.53.50), etc are doing well today.
Tulip Telecom Ltd hits another consecutive buyer freeze in the opening trade. It is now locked at the Upper Circuits at Rs.16.13 in the BSE. This scrip was also very strongly recommended in this blog, repeatedly. 
Today Kingfisher Airlines Ltd moved to Rs.7.20, before cooling down a bit. It is only time that the airlines would start operation once again. A section media is sending all sorts of make believe news in public domain. The media reports are manufactured and punctuated with "If", "May be", kinds of words, for the reasons best known to all. When the debts have actually come down from Rs.7000 Cr plus and the funding from the U B Group is about to happen, these kinds of negative news only points that some vested groups want to enter the scrip at a lower price before the company announces the good news. Paid Media, is being used by vested groups for their own interest...!! "I seriously wonder what motivates the bank chairmen to constantly speak to the media on loan recovery from Kingfisher Airlines. What about others?" ~~Kingfisher Airlines Chairman Dr.Vijay Mallya, shot this message sometime back on the Twitter.

B F Utilities Ltd

CMP: Rs.260.25

• The two cities, Mysore and Bangalore are developing economically on the lines of Mumbai-Pune, with excellent growth and synergies. The Mumbai Pune corridor is a highly industrialised affluent region, powered by an excellent Expressway. The 143 km BMIC distance is part of State Highway 17, and is a key connection from Bangalore to West Karnataka, North Kerala and north and west Tamil Nadu.
• The Bangalore Mysore corridor has tremendous development potential. It is also badly required, for the necessary growth of South Bangalore and Mysore, as well as potentially the entire corridor.
• Even though the B F Utilities Ltd financials are in negative for the December, 2012 quarter, the business is well managed, and the expectation is that if the pending land is handed over to B F Utilities in the next quarter, it may be possible for the management to complete the highway and a fair proportion of the townships by end 2013.
• On legal issues, it is likely that the GoK authorities have, under SC duress, no option but to handover the promised lands, and allow the BMIC executives to proceed on the infrastructure project. According to some reports available on the Internet: the current BJP government have not opposed it, unlike other governments.
• The current State highway has just two lanes each way and is quite congested with travel taking around 3-4 hours. Current data is about 1,00,000 vehicles take this route every day. This indicates that good demand/ potential exists for this new highway by itself. A ballpark estimate of 50% of this traffic attracted to the BMIC, paying a conservative Rs.100 each way indicates Rs.182 Cr annual revenue.
• Most good infra projects attract and stimulate growth. In addition the new townships as well as a new constructions planned will by themselves attract customers from Bangalore, and generate independent revenues and profits.
• Valuation of Real estate firms is difficult. The project has been valued in the past in a wide range, from as low as Rs.4000 – 15,000 Cr. But even this range is higher than current market cap of around Rs.981.24 Cr.
• Much of the value is dependent upon a successful handover of committed lands, followed by execution, commissioning, launch and success of sub-projects.
• But from a risk return perspective, the share has fallen almost 85% from its peak levels, which means the downside looks limited. On the up side, the peak has been more than  6 times the CMP, so there is a significant upside potential.
• The project is showing signs of overcoming teething hurdles and progressing on legal, land acquisition and financial closure aspects.
• The management believes in investing in road assets as soon as they have clear titles, as construction costs today are lesser than those in the future. So many sections are already operational and revenue generating.
• For the High Risk, High Gain investor, this investment can be looked at from a 2-year perspective for a gain of 200 – 300%. In the short term the scrip could move towards Rs.450--500 in the current days as the infrastructure stocks move up in anticipation of a rate cut by the RBI.

B F Utilities Ltd: Should Perk Up Based On Improved Fundamentals

Company Background: BF Utilities Ltd. (BFUL) is a part of  the reputed Kalyani Group. It earlier operated in two business segments –Infrastructure Business and Investment Business. BFUL has undergone a major restructuring where the Infrastructure Business has remained within the BFUL while the Investment Business has been transferred to BF Investment Ltd.
The projects:
1) Nandi infrastructure Corridor Enterprise (NICE) (74.5% holding). Project – BMIC – Bangalore Mysore Infrastructure Corridor Project.
2) Nandi Highway Developers Ltd (NHDL) (69% holding). Project – Hubli -Dharwad Bypass road. - The Hubli-Dharwar bypass in Karnataka is a 30 km road on NH4 that lets highway traffic bypass the two cities, speeding up traffic. NH4 connects Mumbai/ Pune with Bangalore/ Chennai. Operational since 2000.
3) Project – Wind energy, over 300 acres in Satara, Maharashtra is 100% owned. Despite the continued dismal state of US economy, it managed to add 13 GW of windmill capacities in the year 2012, just a whisker below China. However, the much awaited extension of Kyoto Protocol upto the year 2020 has not been able to bring cheer to the global carbon market. The buyers (designated nations) of carbon credits are required to declare by year 2015 their GHG (Green House Gases) reduction commitments for the period upto 2020. Due to the economic crisis in the EU, most of these buyers are reluctant to make commitments and this has led to uncertainty in the markets and has resulted in steep fall in the carbon prices."Despite much talk by world leaders," said IEA executive director, Maria van der Hoeven, "and despite a boom in renewable energy over the last decade, the average unit of energy produced today is basically as dirty as it was 20 years ago."  The IEA uses a complex calculation called the carbon intensity index to show how much CO2 is emitted to provide a given unit of energy. The index stood at 2.39 tonnes of CO2 per tonne of oil in 1990. By 2010, it has shrunk fractionally to 2.37 tonnes. This has led to a growing concern in the world and hence the things could be  looking better from here.
According to IEA report, the major reason for such a small reduction of that period, was due to the resurgence of coal. And, the coal demand continues to grow. Globally, coal-fired electricity generation rose by an estimated 6% from 2010 to 2012 , faster than non-fossil energy. The major growth in coal came from developing economies, with China accounting for 46% of global coal demand in 2011. However, it is not all bad news for the green sector. Renewables such as solar and wind have boomed in 2011 and 2012, perhaps driven by government spending. They accounted for 19% of global electricity generation in 2011 which according to a report is "broadly on track to meet a 2C scenario by 2020" for a globally altered climate.
The Kyoto Protocol’s Clean Development Mechanism was supposedly created to help finance sustainable development projects in the world’s poorest countries. Many of its supporters argued that it would make it possible for these countries to ‘leapfrog’ or skip the process of industrialization to a more sustainable economic model. But most of the money is going to the largest and most industrialized emerging economies. Over two-thirds of Clean Development Mechanism projects are initiated from just 3 countries: The Netherlands (35.59%), Britain (20.34%), and Japan (15.25%). So, when the name of Japan is there we can be optimistic considering the current set of events there.
Event: – The key asset for the company is the project BMIC (Bangalore Mysore Infrastructure Corridor Project) – A 164 km tolled expressway connecting the cities Bangalore and Mysore. It includes a peripheral road in Bangalore, 5 New Townships along the Expressway (the first Section A involves 7,290 acres land), a Town Planning Authority status, and a Concession period for the toll of 40 years. The BMIC is 75% owned by BF utilities. It has a single planning authority – Bangalore Mysore Infrastructure Corridor Area Planning Authority (BMICAPA) for the entire project.
The project is partly operational with the rest held up due to pending handover of land by the government of Karnataka. This high potential project has been stuck for over a decade due to land handover issues, and the firm is making losses. However recent reports indicate that now it may be close to resolving the issue as the Supreme Court has asked Karnataka to handover the Nandi project land to the company. PE fund raising plans are also in discussion who will invest in the development in the project.
This project has immense potential and is also very important for the growth of the South Bangalore and Mysore. Much of the value is dependent upon a successful handover of committed lands, followed by execution, commissioning, launch and success of sub-projects. This would further help the company to create value for itself as well the shareholders. This would further help the stock to re rate.
Interest Rate Cut: Any fall in the interest rate is positive for the company, as it is into infrastructure development as mentioned above. 
Concerns: Though during the last fiscal the windmill projects of the company performed satisfactorily and the trading of (RECs) generated by the projects helped the company to earn additional revenues, but the income from RECs this year is expected to be subdued due to lower rates owing to oversupply of RECs in the market. The CDM market has also witnessed a free fall in the last few months. However, on the issue of grant of open access for wheeling of windpower to third parties within the state, the Regulatory Commission, in an  order, had clarified certain aspects which will pave the way for open access for wind power projects in the state. This is expected to provide the much needed boost for the windmill projects in the state. Moreover, introduction of the Generation Based Incentive (GBI) for FY14 (Union Budget) and setting aside a sum of Rs.800 crore for this purpose augurs well for the company.
Chartical Analysis: 
The stock is in a positive trend and with technical attributes at 3 or more. The attributes show that the stock is displaying good relative strength. There is resistance at Rs.276.00 and support at Rs.244.00.

Market Mantra

Tulip Telecom Ltd hits another buyer freeze in the opening trade. Today on the NSE, there are more than 1 million buyers while there are no sellers. 

Some of the infrastructure companies, like IVRCL Ltd (Rs.20.30), B F Utilities Ltd (Rs.260), Jai Corp Ltd (Rs.64) are doing well today, due to fall in the cement prices (Prices of cement bags fell 3-6% this month across most markets in the country) and also due to optimism that RBI might go in for an aggressive rate cut, as both the Retail inflation and WPI inflation has fallen. 
Excepts of my mid-market inputs to the Paid Group Members: Inability to break 5475 (Nifty_Spot) and a rise above 5615 has turned the market trend upwards. Nifty has re-entered the zone above 200 DMA. Shares from almost all sectors are participating in the up move setting an immediate target of 5850 for Nifty. It seems that intermediate correction started in February has come to an end and uptrend is likely to get resumed. The traders are suggested to hold on to their longs with a Nifty_Spot target of 5850. Nifty_Spot is now trading around 5700 (at the time of sending the report to the Paid Members). Fundamentally speaking, today, the market is expected to continue to trade strong, after a lot of positive macro--economic factors gave the bulls the necessary bulwark, like lowering of trade deficit, increase of exports, lowering of imports, falling of crude oil price, falling of inflation trajectory, and so on. . 
Today, the stock of Kingfisher Airlines Ltd is doing well and hit the upper circuits in the morning trade before cooling down a bit. There were media reports that: "Kingfisher management sources claimed to have got a nod from the Director General of Civil Aviation (DGCA) to go ahead with its pilot training programme ahead of the airline's re-launch". CLICK HERE. Also, a fall in the crude price is positive for the aviation sector, as the ATF prices will come down. The stock should slowly move towards Rs.14-15,  in the coming days. Today it is moving up with good volume; already 26, 59,699 (more than 2.6 million) shares have been traded in the BSE. CMP: Rs.6.95. 
In the media space, while Reliance Mediaworks Ltd (CMP: Rs.50) is up more than 1%, the other ADA Group comcpany Reliance Broadcast Network Ltd is trading flat at Rs.26.35. Both the scrips should be purchased, as a sea change is expected to take place, post the completion of the 2nd phase  of digitization.

B F Utilities Ltd: Rs.255.20

BF Utilities Ltd. (BFUL) is a part of USD 2.4 billion Kalyani Group. BFUL earlier operated in two business segments – Infrastructure Business and Investment Business. BFUL has undergone business restructuring by way of a Composite Scheme of Arrangement. Under the said business restructuring, the Infrastructure Business has remained with BFUL and Investment Business has been transferred to BF Investment Ltd.

Highlights:

(i) The Railway Minister Pawan Kumar Bansal, granted a veritable boon to the beleaguered wind turbine sector by announcing a proposal for setting up 75 MW windmill units, in the railway budget for 2013-14. Mr.Bansal announced "setting up of 75 MW windmill plants and energising 1,000 level crossings with solar power". He said that as a measure to protect the environment and to promote sustainable development, a railway energy management company will be set up to harness the potential of wind and solar power. The railways have pan-India presence and can put up the windmills across the country. This is positive for the wind power generation companies.

(ii) With the scrapping of accelerated depreciation and Generation-Based Incentive (GBI) schemes, the Indian wind power sector received a jolt in the last year's budget.  But, introduction of  generation based incentive to wind power developers, in FY13-14 budget,  is expected to help the wind power industry in a big way. With a generation-based incentive of 50 paise per unit being introduced in the Union Budget, India's wind power capacity is poised to grow from 18,000 megawatts (MW) to 27,000 MW in the next two years, according to turbine makers and wind power producers. The withdrawal of accelerated depreciation for wind energy projects last year led to drastic fall in capacity expansion as only around 1,800 MW new wind capacity was added in 2012-13 against 3,000 MW in 2011-12. Ramesh Kymal, chairman, Indian Wind Turbine Manufacturers’ Association (IWTMA) had said that the reintroduction of GBI scheme by the government would help the wind industry get back to its high growth trajectory and the industry may cross annual capacity addition of 5,000 mw soon. Also, the government  has recognized the contribution of wind power and clean energy fund  will be made available to help wind power.  Wind power accounts for 11% of installed capacity and 6% of total generation in India, he said. The government targets to increase the share of wind power to 15% by 2020 under its national action plan for climate change.

(iii)  Despite the continued dismal state of US economy, B F Utilities Ltd, managed to add 13 GW of windmill capacities in the year 2012, just a whisker below China. Chinese aggregate windmill capacities surpassed 75 GW whereas that of US crossed 60 GW. India's grid-connected renewable energy deployment, mainly solar and wind, has reached 27 gigawatt (GW), according to a top official of the ministry of new and renewable energy.

(iii) Increasing diesel cost will also work to the advantage of wind energy sector as many industrialists may replace diesel generator sets with wind turbines. The government has set a target to add 30,000 mw of power from renewable energy sources during the 12th Plan period (2012-17) and of which 15,000 mw of power is to come from wind sector. As per current government estimates and targets, renewable energy is expected to account for 16-17 per cent of total power capacity in the country by the end of 12th Plan. B F Utilities Ltd's windmill projects are performing satisfactorily during the year.

(iv) Since, the company is into infrastructure development any cut in the repo rate by the RBI, will have sentimental effect on the share price of the company.  Name of Subsidiaries:

a. The company holds 74.52% in Nandi Infrastructure Corridor Enterprises Limited India as of 31/3/2012
b. The company holds 48.27% in Nandi Economic Corridor Enterprises Limited India  as of 31/3/2012
c. The company holds 69.53% in Nandi Highway Developers Limited India 69.53% as of 31/3/2012.

Looking from all angles, I feel the stock has the chance to go to Rs.450, in the medium term.