Tit - bits

Today when I'm writing this report, the  BSE Sensex was at 34,273.90 up 293.20 points (+0.86%) while NSE was trading at 10,141.60 up 112.50 points (+1.12%), taking cues from strong global markets, though there is nothing to cheer about in the Indian  economy; except those hackneyed talks of a gradual lifting of Lockdown and stimulus package -  sentiment boosters.

The market breadth was quite strong. On the BSE, shares 1,956 rose and 492 shares fell. A total of 132 shares were unchanged. In Nifty 50 index, 40 stocks advanced while 10 stocks declined.

Meanwhile, my recommended SKM Egg Products Ltd (Rs.37.30) today hit the 1st target of Rs.39, as it touched Rs.39.75 intraday. Book some profits.

Granules India Ltd also made a high of Rs.187.80, almost near the 1st target of Rs.189.

The metals (commodity) basket is doing well today also. Vedanta Ltd recommended on 25 March, in this blog around Rs.89/90 made a high of Rs.106.25 today, while Hindalco Industries Ltd touched Rs.151 today. The scrip of SAIL recommended along with the other metal counters made a high of Rs.33.80.

With so much negativity around, including Moody's downgrade, it is surprising to see the Indian markets going up piggybacking only on sentimental push -- nothing on ground in the domestic front. People are job less, with their monetary  reserves almost empty. I wouldn't suggest any fresh buy except continue to be a little positive on Metals (commodity), Telecom, Media, Brewery and IT sectors. If you are willing to compulsorily play in the markets then stick to the leaders in the above  mentioned sectors and choose beaten down scrips, from this space.

In another significant development as SC considers petition for interest waiver in loan moratorium period, RBI says doing so would make a huge dent in stability of financial institutions.

Default in repayment of loans by companies (other than financial services) up to September-end and extendable by another six months will not be counted as default under IBC. This is net negative for the banks and FIs.

This market has no head or tail. Banking stocks rose yesterday, even when the government gave 3 months moratorium on paying EMIs. I don't foresee the Indian bourses too high from here. However, in the short term a stock market is always sentiment driven.

Tit -  bits

Photo: Angel Broking 

How are you all? Hope you are doing fine. The Covid - 19 catastrophe has brought wanton sufferings to the people world wide and it will take some time for the things to be back to normal once again. Remain safe and healthy.

Anyway, when I'm writing this report, the Asian bourses were trading mixed, while SGX Nifty was seen at 9,060.50, up marginally by 25 points. Since some time the Nifty has been trading in 8800/9300 ranges,  which somewhat gives us the  support and resistance of the trading pattern of the  Indices. The trends of the  for the short, medium and long term remain bearish. Only a close above 9590 can take Nifty near the intermittent high of 9889, however there is more tendency to break 9000 and test 8800/8700/8420 ranges.

Havijg said that I have taken a bullish view on Commodoties and the price action in 2008 and 2020 has lot of similarities.  Stimulus package,  unleashed worldwide is the commodities' best friend.

The groundwork over the past few months has set the stage for a massive rally in the commodities asset class over the coming years.

The demand side factor for raw materials around the globe is a function of the population. Each quarter,  the world adds another twenty million people to its fold.

At the turn of this century, around six billion people were inhabiting the mother earth.  More head counts around the globe require more raw materials each day.

Moreover, commodities prices are highly sensitive to inflationary pressures. The world’s central banks and governments have unleashed a spate of liquidity in response to the global pandemic.

While the kneejerk reaction to Coronavirus was the formation of a deflationary spiral that took most commodities prices lower, the whiplash impact over the coming years may be just show the opposite trend.

Therefore, buy shares of good companies which are basically into commodities like SAIL (Rs.27.30), Vedanta Ltd (Rs.89.10), etc. But don't rush to buy immediately -- buy during the market dips. The other commodity names, with their support, resistance and targets will be provided to those who are trading through my brokerage house or are subscribers to my Premiun Information Services. 

Market Mantra: Stocks May Open a Tad Lower

Photo: Kalinga TV

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 6 points at the opening bell.

Overseas, most Asian stocks were trading lower, signaling fading investor applause for the US-China trade truce. US stocks rallied yesterday, 3 December 2018 after the US and China declared a truce in their trade war.

Back home, key equity benchmarks extended gains for sixth straight trading session yesterday, 3 December 2018. However, the trading was volatile as gains triggered by strong global cues were almost offset by lower-than-expected domestic GDP data. The Sensex rose 46.70 points or 0.13% to settle at 36,241, its highest closing level since 1 October 2018.

The trading activity on that day showed that the foreign portfolio investors (FPIs) bought shares worth a net Rs 293.12 crore yesterday, 3 December 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 806.45 crore yesterday, 3 December 2018, as per provisional data.

Among corporate news, Axis Bank will be in focus. With reference to a news item titled "I-T dept probing Axis Bank staff for allegedly facilitating benami deals," the bank clarified after market hours yesterday, 3 December 2018, that the matter reported in certain sections of the media pertains to a complaint received by the bank in March 2018, referring to incidents of an earlier period. 

An internal inquiry in this regard has already been conducted by the bank. In case there are any queries from the income tax authorities in the said matter, the bank, as always, shall fully co-operate with the concerned authorities. The bank has always adhered to the highest standards of regulatory compliance and will continue to work towards maintaining a strict code of conduct in all spheres of business that it undertakes, it said.

The 2nd quarter real GDP growth fell to 7.1% YoY, lower than the primarily due to the weaker-than-expected services sector. Although fiscal spending and investments posted a double-digit growth, weak private consumption and very high net imports dragged GDP growth in Q2FY19.  Implied domestic savings rate also fell to a new low of 25.6% in Q2FY19, while investment rate improved to 30.9% on account of a wider current account deficit (CAD). Growth in investments was driven by the private sector (households & corporate), while government capex declined in the said quarter. 

Recent data showed that strong growth witnessd in H1CY18, was basically due to a favorable base (H1FY18: 6%), which is set to fade off in the 2nd half of the year (H2FY18: 7.4%). Although exports grew by a healthy 13.4% on Yo--Y basis, imports shot up by 25.6% in Q2FY19. As a result, net imports widened, shaving off 2.7pp from GDP growth as compared to the previous quarter. Both, investments and government consumption posted double-digit growths (12.5-13%) in the quarter under scrutiny. 

Although construction growth slowed to 7.8% in the 2nd quater of FY19, from 8.7% in the previous quarter, growth remained in line with the average of 7.5% seen during the last four quarters. Mining GVA declined by 2.4% in Q2FY19 after rising 2.8% on an average during the last four quarters.

The recent encouraging signals coming from the US President Donald Trump and Chinese President Xi Jinping's meeting in Argentina have to some extent succeeded in defusing the impending global trade war. The escalating tensions between the two major trading nation already had a sentimental impact on the financial markets across the world. The news filtering in from that summit that no additional tariffs will be imposed by the US and both the two sides will engage in negotiations, is a big relief for other trading nations, including India. 

Over the past couple of years, the RBI has over-projected headline inflation for six quarters and the actual headline inflation in Q2FY19 was as much as 75 bps lower than its projection. Similarly, as against the market expectation of 4.34 % during the past six months, the actual inflation has averaged 4.11 % 

Interestingly, while headline CPI-inflation has fallen consistently during the past two years, bond yield has risen during the past one year probably due to higher-than-expected actual inflation giving a kick to the expectation of a rise in policy rates. Thereafter, as the market participants dwelled on the details, we after another nine months that the 364-day T-bill (or 1-year G-sec) and not the is the basis for the calculation of the real interest rate. 

Key equity benchmarks extended gains for sixth straight trading session, yesterday. However, the trading was volatile as gains triggered by strong global cues were almost offset by lower-than-expected domestic GDP data. Global shares were upbeat as truce talks between US and Chinese leaders at the G20 summit improved investors' risk appetite.

The Sensex rose 46.70 points or 0.13% to settle at 36,241, its highest closing level since 1 October 2018. The index rose 251.86 points, or 0.70% at the day's high of 36,446.16. The index fell 94.62 points, or 0.26% at the day's low of 36,099.68.

The Nifty 50 index rose 7 points or 0.06% to settle at 10,883.75, its highest closing level since 1 October 2018. The index rose 64.45 points, or 0.59% at the day's high of 10,941.20. The index fell 31.40 points, or 0.29% at the day's low of 10,845.35.

The S&P BSE Mid-Cap index and the S&P BSE Small-Cap index rose by 0.46% each. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,321 shares rose and 1,263 shares fell. A total of 195 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Realty index (up 2.6%), the S&P BSE Power index (up 2.47%) and the S&P BSE Metal index (up 2.14%), outperformed the Sensex. The S&P BSE Healthcare index (down 1.21%), the S&P BSE Energy index (down 0.52%) and the S&P BSE Auto index (down 0.19%), underperformed the Sensex.

#A BUY call was initiated in the shares of Balasore Alloys Ltd near the supports of Rs.27-27.50 for short term targets of Rs.41/62. This is a Pramod Mittal group company. He is the brother of the Kolkata (Calcutta) based Steel baron L N Mittal. When, so much talks are underway, for buying Essar Steel by L N Mittal's Arcelor Mittal, I thought it fit to recommend the scrip of his brother's company. The company has a Captive Chrome Ore Mine in Sukinda Valley in Jaipur District of Orissa which is about 170 kms from  the plant. The mine takes care of the Chrome Ore requirement of the Company. 

The company was allotted Manganese ore mines at Balaghat district of Madhya Pradesh. The produce from mines of Balaghat Sector is coveted for its low Phos and Low Fe content. Commercial operation in the said mines has commenced. 

This is a safe scrip to buy and hold considering its high book value and low risk due to it having mines. It is pertinent to mention here that Ferrochromium is having its maximum share of consumption in the steel industry and due to the ever - increasing demands from the construction and steel sectors, the global ferrochromium market is forecasted to flourish in the near future. The Asia Pacific is having the maximum market share in global ferrochromium market with China and India taking the lead.  Europe is an emerging market in the field of ferrochrome and is anticipated to have a considerable market share in future due to its flourishing automobile sector. In North America and Latin America, the demand for Ferrochrome is slowly picking up. The global ferrochromium market is anticipated to be in deficit to cater the increasing global steel demands, in near future. Ferrochromium is mostly produced in India, China, South Africa and Kazakhstan because of their large chromite resources. 

Balasore Alloys got a bargain in this market when it recently announced acquisition of 70% stake in Zimbabwe Alloys. Zimbabwe has the second largest reserves of ferrochrome in the world. For the ferrochrome industry, Africa is strategic location for two reasons. Firstly, the continent has a huge logistic advantage in terms of being near to western market. Secondly, it is very cheap to produce ferrochrome in Africa, which even China cannot match. 

#Yesterday, the shares of my well researched company Omkar Speciality Ltd and its group company Lasa Supergenerics Ltd hit their respective buyer freezes at Rs.14.10 and Rs.22.45 in the NSE. Both these stocks will give superb returns going forward and hence accumulate in declines (if any). To make money on a consistent basis, there is no need to invest in 100s of scrips. Just choose 3-4 of them at a given time and keep on investing or reducing your stakes in them, as the company either fares well or its fundamentals starts to go down. I might be recommending a momentum counter today or tomorrow, first to the Premium Member and then in Twitter (Handle: suman2009s). If you want to get the 1st mover advantage, then you need to join the Premium Information Service and get the required discounts; which is valid till 31st December 2018.

#Those who had earlier invested in the shares of Aro Granite Industries Ltd can average near the CMP of Rs.51 and exit near Rs.55-56 levels, ekeing out slight profits. The scrip is not performing according to expectations and hence it is better to put the money elsewhere. 

#The scrip of Kwality Ltd (Rs.10.50) which was hitting upper circuits eased after touching a high of around Rs.11.90 Profit booking was suggested to the Premium Members who bought around Rs.7, when it came down. The scrip might come down to Rs.8.5 before taking a fresh upmove. Though the company is facing temporary cash cruch, but these are blue chips in their respective sectors and the investors should do well to accumulate them on market declines, albeit with appropriate stop losses. I had said the same for Vedanta Ltd and Hindalco Ltd when they fell near their all-time lows, around a couple of years back. 

#Another encouraging development is that the Bank Nifty (26857.55) almost touched my target of 27000, I gave last month. You can book profits and wait for dips to enter The Entry and Exit levels will be mentioned to the Premium Members only.  

~~with inputs from Capital Market Live News and other sources including net searches and brokerage reports.

Winning Strokes: Think Different

The market spurted on Wednesday led by rally in financial shares. Gains were triggered by value buying after recent steep fall in share prices. The central bank's decision to inject liquidity into the system through purchase of government bonds also improved sentiment.

The Sensex rose 461.42 points or 1.35% to settle at 34,760.89, its highest closing level since 4 October 2018. The index rose 558.88 points, or 1.63% at the day's high of 34,858.35. The index rose 47.03 points, or 0.14% at the day's low of 34,346.50.

The Nifty 50 index rose 159.05 points or 1.54% to settle at 10,460.10, its highest closing level since 4 October 2018. The index rose 181.30 points, or 1.76% at the day's high of 10,482.35. The index rose 17.20 points, or 0.17% at the day's low of 10,318.25.

Among secondary barometers, the BSE Mid-Cap index rose 4.23%. The BSE Small-Cap index rose 3.67%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 2060 shares rose and 606 shares fell. A total of 135 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Realty index (up 4.44%), the S&P BSE Consumer Durables index (up 3.77%), the S&P BSE Finance index (up 3.55%), the S&P BSE Bankex (up 3.53%), the S&P BSE Industrials index (up 3.44%), the S&P BSE Capital Goods index (up 3.40%), the S&P BSE Consumer Discretionary Goods & Services index (up 3.16%), the S&P BSE Auto index (up 2.82%), the S&P BSE Power index (up 2.69%), the S&P BSE Utilities index (up 2.54%), the S&P BSE Basic Materials index (up 2.29%), the S&P BSE Metal index (up 1.88%), the S&P BSE Healthcare index (up 1.80%), the S&P BSE Telecom index (up 1.77%), the S&P BSE Oil & Gas index (up 1.76%), the S&P BSE FMCG index (up 1.66%) and the S&P BSE Sensex index (up 1.35%), outperformed the Sensex. The S&P BSE Energy index (up 1.26%), the S&P BSE Teck index (down 1.07%) and the S&P BSE IT index (down 1.52%), underperformed the Sensex.

National Aluminium Company (Nalco) rose 9.34% after the company said that its board will meet on 12 October 2018 to consider the proposal for buyback of the fully paid-up equity shares of the company.

Shares of the non-banking finance companies (NBFCs) surged after State Bank of India (SBI) reportedly said that it will increase its planned purchase of portfolios from non-banking financial companies.

Among NBFC shares, Shriram Transport Finance Corporation (up 13.18%), Bajaj Finserv (up 10.06%), Edelweiss Financial Services (up 9.99%), Bajaj Finance (up 9.91%), Mahindra & Mahindra Financial Services (up 9.79%), Muthoot Finance (up 9.23%), Cholamandalam Investment and Finance Company (up 9.19%), Muthoot Capital Services (up 7.75%), Reliance Capital (up 6.85%), LIC Housing Finance (up 6.72%), Manappuram Finance (up 6.7%), IDFC (up 6.55%), IIFL Holdings (up 4.19%) and Indiabulls Housing Finance (up 3.61%), edged higher.

State-run SBI jumped 5.88%. SBI reportedly said it will increase its portfolio purchase of loans from non-banking finance companies (NBFCs) this year as it looks to provide the much needed liquidity to the funds-starved sector, and simultaneously fulfil its priority-sector obligations. The bank is looking for opportunities both in priority and non-priority sectors. The bank had initially planned for a growth of Rs 15,000 crore through portfolio purchase during the current year, which is now being enhanced. As per the bank's internal assessment, there may be an opportunity to buy an additional portfolio in the range of Rs 20,000 to Rs 30,000 crore.

Among other banks, Axis Bank (up 6.62%), Yes Bank (up 4.44%), ICICI Bank (up 4.18%), Vedanta (up 2.86%) and Kotak Mahindra Bank (up 2.66%), edged higher.

Shares of aviation companies rose after media reports suggested that the government has sought for Election Commission's nod for cutting excise duty on jet fuel. Jet Airways India (up 7.78%), Spicejet (up 4.37%) and Interglobe Aviation (up 2.98%), edged higher.

On the macro front, based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank of India (RBI) has decided to conduct purchase of the following Government securities under Open Market Operations for an aggregate amount of Rs 12000 crore on 11 October 2018 through multi-security auction using the multiple price method.

In the foreign exchange market, the rupee recovered against the dollar. The partially convertible rupee was hovering at 74.18, compared with its close of 74.39 during the previous trading session.

In the global commodities markets, Brent for December 2018 settlement was up 2 cents at $85.02 a barrel. The contract had risen $1.09 a barrel or 1.30% to settle at $85 a barrel during the previous trading session.

Asian shares ended mixed on Wednesday after a mixed finish on Wall Street overnight. US stocks closed mostly lower Tuesday after a volatile session as investors continued to fret over the implication of higher bond yields on equities. The Nasdaq, however, snapped a three-day losing streak in line with a rebound in technology shares.

US President Donald Trump said Tuesday that he did not like the Federal Reserve's decision to continue hiking interest rates. The US central bank last raised its benchmark interest rate by a quarter point in September, while raising its expectations for economic growth for this year and next.

On the US data front, the National Federation of Independent Business small-business optimism index fell 0.9 point in September, falling from a 45-year high to a seasonally adjusted level of 108.8.

#The shares of Punjab National Bank Ltd recommended around Rs.62.65 yesterday today touched Rs.67 and closed at Rs.66.35. The rising interest rate scenario and positive management commentary will take the scrip to Rs.72, within this week, if this rally continues. 

#The shares of State Bank of India today reached my 1st target of Rs.271 and touched Rs.280.45. It closed at Rs.278.65 up 5.97%. Higher interest rates boost bank profits as they increase the spread between what banks earn by funding longer-term assets, such as loans, with shorter-term liabilities.

#The stock of Global Offshore Services Ltd, the erstwhile Garware Shipping Corporation/Garware Offshore Services was recommended on Twitter and also to the Premium Members based on the crude oil price hike;  at around Rs.12. The scrip closed at Rs.13.1 today, having touched Rs.13.25, intraday. Incorporated on Sep. 20, 1976, Global Offshore Services Ltd belongs to Garware group of companies. It operates in one business segment, chartering of its fleets on hire basis. Average age of its fleet on a consolidated basis, stands at just over 6 years & could be considered to be one of the “younger” fleets in the sector.  One positive development regarding reducing the overcapacity in the sector is that Demolition of OSVs is increasing. Also, it is not expected that all such unemployed units will be reactivated. It is pertinent to mention that over-supply of vessels was caused by over-ordering during the previous boom and easy bank credit. 

It will not too much of an exaggeration to reiterate that Rise in Crude Oil prices is directly proportion to the OSV market, in which companies like Global Offshore Ltd work.  Offshore oil production is projected to increase at a CAGR of 2% from 2017 to 2027, to reach 31.1 m bpd (30% of global oil output). Already with the rise in oil prices, there is some momentum in oil exploration activities in the North Sea market. The year on year demand in 4000+DWT PSV category has increased by 15%. Charter rates in the spot market have also increased in North Sea. Therefore, there is a RAY of HOPE of the sector fundamentals improving in future as the Crude Oil Prices are moving North. The scrip fell from around Rs.850 to the current price of Rs.13.10. Therefore, if the things work as per plan, then this single piece could make you millionaire in the long term. However, there is always a high risk associated with this kind of stock.

#The scrip of Yes Bank Ltd recommended to the Premium Members at around Rs.185 today touched its 2nd target of Rs.237, before closing at Rs.233.90, up 4.12%. The 1st target of Rs.221 was reached a couple of days back. 

#The Nifty did get support along 10286 levels, as was mentioned a number of times to the Premium Members on their Whatsapp. For tomorrow's Nifty Values, one should subscribe to the Premium Membership. If you are really interested in making money you need to join a professional team. With reasonably accurate F&O predictions you can make good money out of Option Trading, with Small Capital. Just take into note how much money people would have made in Yes Bank Ltd and Punjab National Bank Ltd through OPTIONS.  Also, if you have lost money earlier, then bring some cash, I will help to recover that amount. Also, I'm generally active in Twitter during the market hours. You can join me there at: suman2009s.

~~With inputs from Capital Market Live News....

Market Pulse

16-Mar-18: Fresh selling in index pivotals pulled the key benchmark indices to intraday low in early afternoon trade.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 276.96 points or 0.82% at 33,408.58. The Nifty 50 index was down 87.50 points or 0.84% at 10,272.65. Index heavyweights Reliance Industries (RIL), HDFC and ITC dropped. Metal and mining stocks declined.

Trading for the day began on a dull note as the key benchmark indices edged lower in early trade on negative Asian stocks. Stocks extended fall in morning trade. Key benchmark indices hovered near day's low in mid-morning trade.

The S&P BSE Mid-Cap index was down 0.27%. The S&P BSE Small-Cap index was down 0.13%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade. On the BSE, 1,398 shares declined and 1,053 shares rose. A total of 142 shares were unchanged. Breadth was strong in early trade.

Tata Motors (down 2.56%), ONGC (down 2.18%) and Reliance Industries (down 1.49%) edged lower from the Sensex pack.

L&T fell 0.39%. The Railways Strategic Business Unit of L&T Construction's Transportation Infrastructure Business has signed a contract worth Rs 2864 crore with the Dedicated Freight Corridor Corporation of India (DFCCIL). The scope of work includes construction of single railway track including yards, 75 major & 588 minor bridges, 1 rail over bridge modification, 4 rail flyovers, 21 stations along with construction of all associated works. The announcement was made during market hours today, 16 March 2018.

Drug major Dr Reddy's Laboratories (DRL) fell 0.06%. DRL during market hours today, 16 March 2018 said that the company has launched levocetirizine dihydrochloride tablets USP, 5 mg, an over-the-counter therapeutic equivalent generic version of Xyzal allergy 24HR tablets, in the US market as approved by the US Food and Drug Administration (USFDA).

Levocetirizine dihydrochloride tablets are used for 24-hour relief of allergy symptoms such as watery eyes, runny nose, itching eyes/nose and sneezing. According to IRI sales data, Xyzal allergy tablets had sales of about $71 million in the US market for the 12-month period ended January 2018.

Metal and mining stocks declined. Vedanta (down 1.01%), JSW Steel (down 1.34%), Tata Steel (down 2.33%), Steel Authority of India (Sail) (down 1.86%), National Aluminium Company (down 1.52%), Hindustan Zinc (down 0.69%), Jindal Steel & Power (down 1.8%), Hindalco Industries (down 0.69%), NMDC (down 0.2%) and Hindustan Copper (down 2.02%) edged lower.

Copper edged higher in the global commodities market. High Grade Copper for May 2018 delivery was currently up 0.42% at $3.1405 per pound on the COMEX.

Neuland Laboratories rose 4.34% to Rs 732.50 after a domestic brokerage initiated coverage on the stock with a 'buy' rating and target price of Rs 1,065. The brokerage said in a report that Neuland Laboratories is likely to report a strong recovery in the next fiscal. It expects 19% compounded growth rate in revenue and 800 basis point margin expansion and seven times earnings over the fiscal 2018-2020, it added.

Indian Hotels Company was down 1.05% to Rs 131.60 after the company's promoters exchanged shares via bulk deals yesterday, 15 March 2018. Indian Hotels Company (IHCL) witnessed promoter holding rejig through open market transactions on 15 March 2018 on the BSE at an average price of Rs 130.40 per share. Sir Ratan Tata Trust sold 1.10 crore shares. Sir Dorabji Tata Trust offloaded 5.02 crore shares. Lady Tata Memorial Trust disposed of 1.77 crore shares. Tata Sons purchased 7.89 crore shares. Sir Ratan Tata Trust held 0.93%, Sir Dorabji Tata Trust 4.22%, Lady Tata Memorial Trust 1.49% and Tata Sons controlled 29.79% stake end December 2017.

Meanwhile, India's trade deficit for February 2018 was estimated at $11,979.21 million, 25.8% higher than the $9,521.73-million deficit reported during February 2017, government data released after market hours yesterday, 15 March 2018 showed. Exports during February 2018 stood at $25,834.36 million compared to $24,726.71 million during February 2017. Imports during February 2018 were pegged at $37,813.57 million, compared to $34,248.44 million in February 2017.

On the political front, Andhra Pradesh's Telugu Desam Party (TDP) reportedly pulled out of its alliance with the BJP-led NDA at the Centre. The N Chandrababu Naidu-led TDP, as well as other local parties, expressed their discontent over Narendra Modi led Union govt not giving special status to Andhra Pradesh.

Overseas, most Asian stocks fell as weak volumes in the US session overnight gave little impetus for traders ahead of next week's Federal Reserve meeting. US stocks ended mixed yesterday, 15 March 2018 as industrial and tech gains were offset by losses in the consumer and energy sector.

Today's Calls:

#The stock of 63 Moons Technologies Ltd recommended around Rs.85 and Rs.94, today made an intraday high of Rs.114.5. Book some profits and wait for dips to enter. Keep a SL at Rs.103.

#Central Bank Ltd which was recommended around Rs.67 and Rs.75, has hit Rs.87, intraday. You can book some profits and hold the rest with a SL at Rs.82.

#PAIR TRADE: Buy BANK_NIFTY FUTURES at around 24770 and Simultaneously SELL NIFTY FUTURE at around 10331; ENTRY SPREAD: 2.3955; SL SPREAD: 2.38; Target SPREAD: 2.4012; Duration: 1-2 days.

#Yesterday a Buy was given to the Premium Members in the counter of Lanco Infratech Ltd at around Rs.1.15 for short term targets of Rs.1.45 and Rs.1.82. The stock hit the upper circuits today and is now trading at this level. The company is expected to turnaround in FY19. The scrip of Lanco Infratech Ltd is likely to hit the Buyer Freeze today. 

#Intraday SELL IOC Ltd at around Rs.189, SL: Rs.191.25, T: Rs.185.5-183. Book FULL PROFIT at around Rs.184.80.

#Intraday short GOLD at around Rs.30245, SL above Rs. 30310, T: Rs.30140. A lower CPI does not augur well  for Gold Bulls.

#The stock of MCX Ltd recommended at around Rs.780, made a high of Rs.831.95, intraday. Those who have still not booked profit, kindly do the same and wait for dips to re-enter.

#The stock of RattanIndia Power Ltd (erstwhile Indiabulls Power) today made an intraday high of Rs.6.10. Those who are holding the same can accumulate on market dips, keeping a SL at Rs.5.60.

#Today, I will be recommending another small cap company from the Real Estate space to the Premium Group members. If you can online transfer the subscription amount, then I will instantly give you the name of the scrip; which I feel will cover up the subscription cost. 

~~ with inputs from Capital Market - Live News....

Market Pulse

Key benchmark indices hovered in positive zone in early afternoon trade. 

At 13:35 IST, the barometer index, the S&P BSE Sensex, was  seen trading at 33,999.86 up 81.92 points or 0.24% while the NSE was seen at 10,455.15 up 33.75 or 0.32%.

The Sensex was trading below the 34,000 level after hitting an intraday high above that level in morning trade. Domestic macroeconomic data released after market hours yesterday, 12 March 2018, signalling an economic turnaround boosted the sentiment.

IT stocks declined as the rupee firmed against the dollar. Metal and mining stocks rose. Aviation stocks rose.

Volatility struck bourses in early trade as the key benchmark indices turned positive soon after an initial decline triggered by subdued Asian stocks. Stocks extended gains and hit fresh intraday high in morning trade. Key benchmark indices trimmed some gains in mid-morning trade.

The S&P BSE Mid-Cap index was up 1.02%. The S&P BSE Small-Cap index was up 1.22%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,678 shares rose and 754 shares fell. A total of 124 shares were unchanged.

IT stocks declined as the rupee firmed against the dollar. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports. In the foreign exchange market, the partially convertible rupee was hovering at 64.9625, compared with closing of 65.04 during the previous trading session.

MindTree (down 1.11%), HCL Technologies (down 0.87%), Oracle Financial Services Software (down 0.05%), Tech Mahindra (down 0.31%) and Hexaware Technologies (down 0.29%) fell.

TCS lost 4.75% to Rs 2,907 on reports that that Tata Sons has sold about 2.84 crore shares or 1.5% stake of the company through six block deals in a price range of Rs 2,872 to Rs 2,925 per share on the NSE. Tata Sons held 73.52% stake in TCS (as on 31 December 2017. The money raised from the stake sale will be used by Tata Sons to strengthen its balance sheet, reports added.

Infosys shed 0.07%. Infosys announced its intention to voluntarily delist its American Depository Shares (ADS) from the Euronext Paris and Euronext London exchanges. Infosys ADS will continue to be listed on the NYSE and investors can continue to trade their ADS on the NYSE as before. The announcement was made after market hours yesterday, 12 March 2018.

The primary reason for seeking the proposed delisting is the low average daily trading volume of Infosys ADS on these exchanges, which is not commensurate with the related administrative requirements. During the 5-year period of the company's listing on Euronext Paris and Euronext London, the average daily trading volume of the company's ADS was significantly lower than its average daily trading volume on the New York Stock Exchange (NYSE). The proposed delisting is subject to approval from Euronext Paris S.A. and Euronext London. There will be no change to the Infosys share/ADS count, capital structure and float, as a result of the proposed delisting from the above exchanges.

Metal and mining stocks rose. Hindustan Copper (up 2.39%), JSW Steel (up 0.96%), Tata Steel (up 0.69%), Steel Authority of India (Sail) (up 1.52%), National Aluminium Company (up 0.55%), Hindustan Zinc (up 0.5%), Jindal Steel & Power (up 0.96%) and NMDC (up 0.69%) edged higher. Hindalco Industries (down 0.2%) fell.

Vedanta rose 1.72% to Rs 322.40 after the company's board of directors at its meeting held today, 13 March 2018, declared an interim dividend of Rs 21.20 per share for the financial year ending 31 March 2018. The announcement was made during market hours today, 13 March 2018.

Aviation stocks rose. SpiceJet (up 1.26%) and Jet Airways (India) (up 2.18%) rose.

InterGlobe Aviation rose 0.13%. According to media reports, the Director General of Civil Aviation (DGCA) on Monday, 12 March 2018, grounded a few Airbus A320neo aircraft currently operating in the country due to the ongoing Pratt & Whitney engine issue. DGCA asked IndiGo to ground eight of its A320neo aircraft until further notice.

The civil aviation authority has reportedly said that no concrete proposal has been given by Pratt & Whitney yet on when the engine woes will be resolved. All the grounded A320neo aircraft are fitted with Pratt & Whitney engines, reports added.

InterGlobe Aviation has yet to reply to a stock exchange notice issued late on Monday, 12 March 2018, seeking clarification on the media reports.

Future Consumer jumped 14.26% to Rs 57.70 after a domestic brokerage initiated coverage on the stock with a 'Buy' rating and price target of Rs 76. The brokerage stated in its report that Future Consumer (FCL), an integrated consumer company, is the best play on the huge window of opportunity (presented by a combination of macro factors and company-led initiatives) for brands using modern retail methods of distribution.

In addition, FCL appears best placed among Future Group companies from a revenue, profit and RoCE perspective, given the group's focus on retail expansion to drive growth in its burgeoning brands portfolio. Improving mix and operating leverage are expected to drive significant margin expansion over the next five years, the report added.

Domestic macroeconomic data released after market hours yesterday, 12 March 2018, signalled an economic turnaround. The lower-than-expected CPI inflation and higher-than-expected IIP data will allay fears of an interest rate hike by the Reserve Bank of India.

India's industrial production (IIP) continued to record a strong growth for the third straight month at 7.5% in January 2018 from 7.1% growth in December 2017. The manufacturing sector's production surged 8.7% in January 2018, supporting overall growth in industrial production. The mining output growth slowed down to 0.1% in January 2018, while the electricity generation growth accelerated to five-month high of 7.6% in January 2018, contributing to the improvement in overall industrial production growth in January 2018.

The all-India general consumer price index (CPI) inflation dipped to four-month low of 4.44% in February 2018, compared with 5.07% in January 2018 and at 3.65% in February 2017. The corresponding provisional inflation rate for rural area was 4.37% and urban area 4.52% in February 2018 as against 5.21% and 4.93% in January 2018. However, the core CPI inflation rose marginally to 5.04% in February 2018 compared with 5% in January 2018.

Overseas, most Asian stocks were trading lower ahead of US reading on inflation due today, 13 March 2018, which is likely to give some idea about whether the Federal Reserve will accelerate its pace of rate increases.

In US, the Dow Jones Industrial Average and the S&P 500 index finished lower Monday, 12 March 2018 weighed down by the industrials sector, while the Nasdaq Composite Index closed at a record, in part due to optimism over Friday's jobs data, which showed solid economic growth without triggering wage pressure.

Today's Calls:

#TV Vision Ltd hits the buyer freeze at around Rs.16.80. We can look for targets of Rs.27-29 if Rs.19 is taken out on the upside. Accumulate on dips. 

#The stock of Union Bank of India Ltd is probably heading towards Rs.111-117. You can raise the stop loss to Rs.96 and keep holding. 

#Should you enter into the SCAM TAINTED counter of KSK Energy Ventures Ltd (Rs.9.90)? You need to join the Premium Service to get the answer. 

#Videocon Industries Ltd hit another buyer freeze at Rs.14.70. This stock is going to deliver multi-bagger return going forward, Therefore, don't sell out in a hurry -- however, book profits on the way up.

# The Stock of HDIL recommended to the Premium Members in the morning,  at around Rs.41.60 for short term targets of Rs.44-47,  has hit an intraday high of Rs.46.70, which is almost near the 2nd target of Rs.47. Book some profits and wait for intraday lows to enter.

#Buy the shares of RattanIndia Power Ltd (erstwhile Indiabulls Power Limited) at around Rs.5.7 for a short term target of Rs.9.

#Buy the shares of Apollo Tyres Ltd at around Rs.264, SL: Rs.260, T: Rs.269-272 on T+2 basis. This a pure chart based call.

#SELL Copper at around Rs.451.00 (CMP: Rs.450.95), Stop Loss above Rs.454.10, T: Rs.445.00 on T+1) basis....

#The stock of P C Jewelers Ltd (Rs.379.80) recommended several times in this blog is on fire today, up more than 10%.  

#Join the Premium  Service or trade through my recommended brokerage house with a minimum portfolio size of Rs.3 lakhs to stay ahead of other. This blog only gives an outline of what is sent to Premium Members and hence if you want a complete guidance, then you need to look for Paid Subscription based Service. 

Market Pulse

Key benchmark indices hovered in positive zone in morning trade after an initial upmove triggered by positive Asian stocks. At 11:50 IST, the barometer index, the S&P BSE Sensex, was seen at 34,061.22 up 241.72 points while the Nifty was trading at 10,466.80 up 84.1 Metal and mining stocks gained across the board. Telecom stocks rose.

Domestic stocks edged higher in early trade tracking positive Asian stocks.

The S&P BSE Mid-Cap index was up 0.95%. The S&P BSE Small-Cap index was up 0.96%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,548 shares rose and 565 shares fell. A total of 84 shares were unchanged.

Overseas, Asian stocks were trading higher as investors continue to debate the outlook for central bank policy normalization and the impact of higher bond yields. Meanwhile, Japan's core consumer price index rose for a 13th straight month in January, increasing by 0.9% from a year earlier, matching December's rate of growth, data from the Ministry of Internal Affairs and Communications showed today, 23 February 2018.

In US, the Dow and the S&P 500 closed higher while the Nasdaq slipped yesterday, 22 February 2018 as investors grappled with the threat from higher interest rates. On the data front, initial US jobless claims fell by 7,000 to 222,000 in the seven days ended 17 February 2018, marking the second lowest level since the end of the 2007-2009 recession.

Back home, Sun Pharmaceutical Industries (up 4.16%), Yes Bank (up 2.39%) and ICICI Bank (up 1.16%) edged higher from the Sensex pack.

Metal and mining stocks gained across the board. Vedanta (up 2.03%), JSW Steel (up 2.42%), Tata Steel (up 3.35%), Steel Authority of India (Sail) (up 3.01%), National Aluminium Company (up 2.15%), Hindustan Zinc (up 2.1%), Jindal Steel & Power (up 3.98%), Hindalco Industries (up 1.77%), NMDC (up 1.46%), Hindustan Copper (up 1.84%) edged higher.

Telecom stocks rose. Bharti Airtel (up 1.81%), Idea Cellular (up 0.55%), Tata Teleservices (Maharashtra) (up 1.15%) and Reliance Communications (up 0.91%) rose. MTNL (down 1.86%) fell.

Shares of Bharti Infratel fell 0.57%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

KSB Pumps gained 1.89% after net profit rose 21.1% to Rs 27.35 crore on 30.9% growth in net sales to Rs 328.19 crore in Q4 December 2017 over Q4 December 2016. KSB Pumps' board recommended dividend of Rs 6 per share for the year ended 31 December 2017. The results were announced after market hours yesterday, 22 February 2018.

Today's Calls:

#How many of you bought the shares of Reliance Infrastructure Ltd today morning at around Rs.444 reading my blog inputs.. Book some profit at around Rs.457 and wait for dips to enter.

#Buy beaten down P C Jewelers Ltd Futures at around Rs.333.15 for a short term target of Rs.377, SL: Rs.326. This stock will give up super duper returns in the short term.

It is pertinent to mention here that the stock of P C Jewelers Ltd fell from around Rs.580 - plus which is made in late January, 2018. However, it will benefit from dilution of Nirav Modi brand, due to elimination one of its major competitors in the gems and jewelry segment.  Moreover, on January 25, 2018 Vakrangee bought 20,00,000 shares of PC Jeweller at Rs.561.71 on the NSE. Earlier, the Delhi-based jewelry retailer PC Jewellers Ltd, denied that there was any reason for having worries that the company may be linked with Vakrangee, another firm that is under the scanner for allegedly manipulating its own stock. Investors were worried because Vakrangee has a tiny stake in PC Jeweler. Also, the company’s finance head Sanjeev Bhatia came on TV at the beginning of this month and said: “We have no business agreement with Vakrangee and none of our promoters have sold any stake in the firm. Besides, With 60% of gold demand coming from rural India, the budget’s focus on boosting rural and farm incomes could benefit companies such as Titan Co Ltd., Tribhovandas Bhimji Zaveri Ltd., PC Jeweller Ltd.

#Those who are holding the shares of 3i Infotech Ltd (Rs.5.65) should wait for the scrip to give a closing above Rs.6.30 to take fresh positions. This is a wonderful company and long term investors would definitely get benefited.

#Those who are holding the shares of Housing Development & Infrastructure Ltd (HDIL, CMP: Rs.49.90) should add the scrip on every decline with a SL at Rs.47. It is good that it is out of the F&O basket, due to obvious reasons. Now we can look for targets of Rs.91-97-121 in the coming days. Remain invested and average on every dip.

~~with inputs from Capital Market - Live News...

Market Pulse

After an initial volatility, stocks extended early gains and hit fresh intraday high in morning trade.

At 11:07 IST, the barometer index, the S&P BSE Sensex, was trading at 33,877.68 up 103.02 points or 0.31% and NSE was seen at 10,400.75 up 22.35 points or 0.22%. Metal and mining stocks gained. Telecom stocks saw mixed trend.

Stocks struggled for direction in opening trade amid mild volatility. Soon the key benchmark indices nudged higher and posted small gains in early trade.

The S&P BSE Mid-Cap index was up 0.42%. The S&P BSE Small-Cap index was up 0.43%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,366 shares rose and 808 shares fell. A total of 99 shares were unchanged. Breadth was negative in early trade.

Overseas, Asian stocks were trading lower as Treasury yields climbed back toward recent four-year highs. Chinese markets will reopen on Thursday, 22 February 2018. US markets remained closed yesterday, 19 February 2018 in observance of Presidents Day.

Back home, Tata Steel (up 1.51%), Hero MotoCorp (up 1.3%) and TCS (up 1.21%) were the top gainers from the Sensex pack.

IndusInd Bank rose 0.85% after the bank said it has no direct credit exposures to Nirav Modi nor any indirect credit exposures basis the Letter of undertaking (LOU) issued by Punjab National Bank (PNB). As regards Gitanjali Gems, the bank has a small, two digit exposure, not linked to any LOUs. The announcement was made during market hours today, 20 February 2018.

Metal and mining stocks gained. Vedanta (up 2.22%), JSW Steel (up 1.39%), Tata Steel (up 1.6%), Steel Authority of India (Sail) (up 2.12%), National Aluminium Company (up 1.32%), Hindustan Zinc (up 1.41%), Jindal Steel & Power (up 1.56%), Hindalco Industries (up 1.56%), NMDC (up 2.41%), Hindustan Copper (up 0.8%) edged higher.

Telecom stocks saw mixed trend. Bharti Airtel (up 1.23%), Idea Cellular (up 0.67%), MTNL (up 1.09%) and Tata Teleservices (Maharashtra) (up 0.63%) gained. Reliance Communications (down 0.7%) fell.

Shares of Bharti Infratel fell 0.85%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

JSW Energy rose 1.2% after the company said it signed a pact with the Government of Maharashtra for the manufacturing electric vehicles and energy storage systems. In addition to the earlier Memorandum of Understanding (MoU) with the Government of Gujarat with respect to electric vehicles (EV) manufacturing and associated businesses, the company has now entered into another MoU with the Government of Maharashtra for setting up facilities for the manufacturing of EV and energy storage systems in the state of Maharashtra. The announcement was made after market hours yesterday, 19 February 2018.

Vascon Engineers rose 2.31% after the company said it formally signed an agreement with Lina Ashar Foundation, Mumbai to develop a built-to-suit property at one of the company's land holdings in Pune. The announcement was made after market hours yesterday, 19 February 2018.

Under the agreement, Vascon will construct and deliver a total builtup area of approximately 135,000 square feet (SqFt) on long term lease to Lina Ashar Foundation, the school operator, in phases. The planned Billabong High International School will provide state-of-the-art infrastructure in terms of design and facilities to create a unique learning experience that will be first of its kind in the city.

Today's Calls:

#TV Vision Ltd (up 4.93%) is doing well today and has hit the Upper Circuit at Rs.18.10 in the NSE.. I hope you (Premium Members and my Blog Readers) have completed averaging the scrip yesterday.

#Yesterday's Call to the Premium Members: Buy NIFTY FUTURE around 10330-10335, SL: 10275 (CASH/SPOT), T: 10404-10425 ==> Target achieved. Book Profits....

#Buy Raymond Ltd at around Rs.952, SL: Rs. 942, T: Rs. 971-978 on T+1 basis. This  is a pure chart based call. Exit Raymond Ltd around COST price of Rs.952. Call Closed.

~~With inputs from Capital Market - Live News...

Winning Strokes

Photo: Udayavani

Trading for the week started on a subdued note as key indices logged modest losses as sentiment was marred by loan fraud cases in the PSU banks. The barometer index, the S&P BSE Sensex, lost 236.10 points or 0.69% to settle at 33,774.66. The Nifty 50 index lost 73.90 points or 0.71% to settle at 10,378.40. The last week's detection of a massive fraud at a Mumbai branch of the state-run Punjab National Bank (PNB) continued to weigh on sentiment. The latest reports suggesting a loan fraud case in PSU banks by now defunct Rotomac Pens also marred sentiment.

The recent rebound in global crude oil prices also raised concerns of its adverse impact on fiscal deficit as India imports most of its oil requirements. The Sensex settled below the psychological 34,000 mark after drifting below that level in early trade. The market dropped for the second day in a row.

A bout of volatility was seen in early trade as the key benchmark indices opened higher but quickly erased gains to sink in the negative zone. Stocks extended slide and hit fresh intraday low in morning trade. Key benchmark indices hovered in negative zone in mid-morning trade. Selling aggravated and indices nosedived to hit fresh day's low in afternoon trade. Domestic stocks continued to languish and hover near intraday low in mid-afternoon trade. Key indices cut losses in late trade.

The Sensex lost 236.10 points or 0.69% to settle at 33,774.66. The index slumped 456.39 points or 1.34% at the day's low of 33,554.37. The index rose 112.20 points or 0.33% at the day's high of 34,122.96.

The Nifty 50 index dropped 73.90 points or 0.71% to settle at 10,378.40. The index dropped 149.55 points or 1.43% at the day's low of 10,302.75. The index gained 37.05 points or 0.35% at the day's high of 10,489.35.

The S&P BSE Mid-Cap index declined 1.05%. The S&P BSE Small-Cap index fell 0.99%. Both these indices underperformed the Sensex.

Among the sectoral indices on BSE, the S&P BSE Healthcare index (down 1.1%), the BSE Auto index (down 1.11%), the BSE Capital Goods index (down 1.56%), the BSE Metal index (down 1.6%), the BSE Oil & Gas index (down 1.01%) and the BSE Realty index (down 1.12%) underperformed the Sensex. The BSE IT index (down 0.52%), the BSE Telecom index (down 0.53%) and the BSE Bankex index (down 0.57%) outperformed the Sensex.

The broad market depicted weakness. There were almost three losers against every gainer on BSE. 2,017 shares fell and 734 shares rose. A total of 162 shares were unchanged.

The total turnover on BSE amounted to Rs 4070.05 crore, lower than the turnover of Rs 4116.26 crore registered during the previous trading session.

Capital goods stocks edged lower. BEML was down 2.47%, ABB India 1.92%, Bharat Electronics 1.29%, Bharat Heavy Electricals (Bhel) 1.06%, and Siemens fell 2.31%. Punj Lloyd was up 0.49% and Thermax rose 1.82%.

PSU bank stocks continued to bleed following detections of frauds in some psu banks. State Bank of India was down 1.51%, Dena Bank 4.43%, Canara Bank 1.3%, and United Bank of India fell 2.36%.

Bank of Baroda slumped 5.48%, Allahabad Bank 6.3%, Bank of India 4.07% and Union Bank of India slumped 7.19%. The Central Bureau of Investigation (CBI) reportedly today, 19 February 2018, grilled Vikram Kothari, owner of the now defunct Rotomac Pens in Rs 800 crore loan fraud case. The Bank of Baroda had approached the CBI with a complaint against Kothari. Kothari had reportedly borrowed Rs 800 crore from various public sector banks including Allahabad Bank, Bank of India and Union Bank of India.

Punjab National Bank (PNB) lost 7.36%, extending recent steep losses triggered by the bank detecting a $1771.69 million fraud at a single branch in Mumbai. PNB made the announcement before trading hours on 14 February 2018.

PNB announced before trading hours on 14 February 2018, that it detected some fraudulent and unauthorised transactions (messages) in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance. Based on these transactions, other banks appear to have advanced money to these customers abroad. In the bank these transactions are contingent in nature and liability arising out of these on the bank shall be decided based on the law and genuineness of underlying transactions. The quantum of such transactions is $1771.69 million (approximately). The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land. The bank said it is committed to clean and transparent banking.

PNB clarified after market hours on 15 February 2018, that on 16 January 2018, the partnership firm of Nirav Modi group approached PNB branch at Brady House, Mumbai and presented a set of import documents with a request to allow buyers' credit for making payment to the overseas suppliers. Since there was no sanctioned limit in the name of the above firms, the branch officials requested the firms to furnish at least 100% cash margin for issuing Letter of Undertaking (LOU) for raising buyer's credit. On denial, the firms contested that they have been availing such transactions since past several years.

Metal and mining stocks declined. JSW Steel lost 2.97%, Steel Authority of India (Sail) 1.3%, Hindustan Copper 2.16%, National Aluminium Company 2.36%, Hindustan Zinc 0.22%. Jindal Steel & Power 0.64%, and NMDC 1.83%. Hindalco Industries 0.32% and Vedanta rose 0.33%.

Vakrangee was locked in 5% lower circuit at Rs 233.20 on profit booking after a recent rally. Shares of Vakrangee surged 27.57% in five trading sessions to settle at Rs 245.45 on Friday, 16 February 2018, from its close of Rs 192.40 on 8 February 2018.

Meanwhile, the Sensex has declined 522.81 points or 1.52% in two sessions to its ruling index, from a close of 34,297.47 on 15 February 2018.

Overseas, European shares were trading lower. Asian shares rose as sentiment improved gradually from a recent shakeout that stemmed from fears of creeping inflation and higher borrowing costs. Markets in China, Hong Kong and Taiwan remain closed for the holiday. US markets are closed today, 19 February 2018 in observance of Presidents Day.

Japanese exports rose for a 14th straight month in January 2018, helped by continued demand from Asia for equipment to make semiconductors, data from Japan's finance ministry showed today, 19 February 2018. Exports grew 12.2% in January from a year earlier, following a 9.3% year-on-year gain in the previous month.

In US, the Dow industrials and S&P 500 logged their sixth straight advance on Friday, 16 February 2018 but the Nasdaq lagged its peers, as political drama sparked turbulent trade late in the session. Special Counsel Robert Mueller announced the indictments of 13 Russian nationals and three Russian entities, accusing them of interfering in the 2016 US presidential election. The indictment said the defendants were supporting Donald Trump's campaign and disparaging Hillary Clinton.

#Today, two buy calls were initiated for the Premium Members during the dying hours of the market: 

(i) Buy NIFTY FUTURE around 10330-10335, SL: 10275 (CASH/SPOT), T: 10404-10425....

(ii) Buy the shares of Jai Corp Ltd at around Rs.165, SL: Rs.161 for a very short term target of Rs.172, .

Join Premium Information Service or trade through my associated brokerage house BMA Wealth Creators Ltd, with a minimum portfolio size of Rs.2 lakhs to be a part me and stay ahead of others. I am giving special discounts to the small investors (Portfolio Size: below Re.1 lakh), till 28 February, '18. Hence, you are requested to avail of the same, till the offer lasts. 

#The shares of TV Vision Ltd (Rs.17.10) is probably near its bottom and hence a bounce is expected from the oversold levels. If we look at the December, '17 quarter results of the company we would find that its total revenue had moved up to Rs.27.81 crore as against Rs.26.04 crores in the September, '17 quarter. Also, the PBDT  of company for Q3FY18 is Rs.2.02 crore as against Rs.16 lakhs in the September, '17 quarter. It is due to Depreciation and Tax component that the company came out with loss in the December, '17 quarter.

The year 2018 is expected to be action packed since it will be a big year before the general elections in 2019. The company is likely to hike the ad rates going forward. Also, similar to the telecommunications sector, television broadcasting organisations, including direct-to-home (DTH), cable services and headend in the sky (HITS) require huge investments in setting up technology and distribution networks and, as such, are ‘asset-rich’ organisations.

Indian Budget, '18-19, was a big thumbs up for Digital India and digitisation. With a view to promote digitization, the government of India is set to make the necessary investments in robotics, IoT, AI, digital manufacturing and big data analysis with the NITI Aayog to establish a national programme to direct efforts in the artificial intelligence. The governmemt has committed itself to the development of technology along with concentrating on AI and its application, a revolutionary move for the digital industry. The ministry has decided to double its Digital India budget to around Rs.3000 crore. 

The ministry has also proposed to set up 5 lakh Wi-Fi hotspots to give access to 5 crore rural citizens, which means digital and internet penetration into smaller pockets of the country will result in increased data consumption across India. The move will help brands, agencies and OTT players to create target content for such markets. 

Moreover, the government's thrust to rural infrastructure and agriculture in the budget could lead to additional broadcast revenues and may increase the number of TV households in India. As the standard of living increases, electrification expands and affordability goes up, the rural India will buy more television sets and the penetration will increase. A lot of the freedish homes might also get converted to pay TV homes, adding up to the subscription revenues of the broadcasters. 

“Our baseline study indicated that economic prosperity and higher living standards goes hand in hand with TV penetration and higher TV consumption. With only two-thirds of Indian homes having access to TV, there is huge headroom for growth here, and this year’s budget should help drive up TV ownership and consumption in rural India," Dasgupta said.

Besides, advertising expenditure in India is expected to grow at 13% to touch Rs.69,346 crore in 2018 over 2017, according to a forecast by WPP-owned media agency GroupM in its report This Year Next Year (TYNY). This is higher than 10% that GroupM put out for 2017.

Therefore at the CMP of Rs.17.10, the share of the company having 5-established TV channels and having great plans ahead is available at the price of dirt. The scrip of TV Vision Ltd, should get ultimate support in the range of Rs.15.3-Rs.17.

~~with inputs from Capital Market - Live News....

WINNING STROKES

IT Sector was buoyant today

Key benchmark indices settled with modest losses led by decline in index pivotals Reliance Industries, ITC and HDFC. However, gains in Infosys, TCS and ICICI Bank cushioned steep losses on the bourses. The barometer index, the S&P BSE Sensex, fell 72.46 points or 0.21% to settle at 34,771.05. The Nifty 50 index fell 41.10 points or 0.38% to settle at 10,700.45.

Bank stocks edged lower. Metal and mining stocks dropped. Realty stocks declined.

Indices opened with small gains and hovered in the positive terrain near the flat line till morning trade. Stocks slipped into the red in mid-morning trade but soon pared losses. The market once again reclaimed positive terrain in early afternoon trade, however, once again drifted lower in afternoon trade. Indices slipped into the red again after staging recovery in mid-afternoon trade. Indices swung between gains and losses in late trade.

The Sensex lost 72.46 points or 0.21% to settle at 34,771.05, its lowest closing level since 12 January 2018. The Sensex rose 92.52 points or 0.27% at the day's high of 34,936.03 in morning trade. The index fell 107.96 points or 0.31% at the day's low of 34,735.55 in mid-afternoon trade.

The Nifty 50 index lost 41.10 points or 0.38% to settle at 10,700.45, its lowest closing level since 12 January 2018. The Nifty gained 20.80 points or 0.19% at the day's high of 10,762.35 in morning trade. The index declined 53.70 points or 0.5% at the day's low of 10,687.85 in mid-afternoon trade, its lowest level since 12 January 2018.

Among the secondary indices, the S&P BSE Mid-Cap index fell 1.74%. The S&P BSE Small-Cap index dropped 2.21%. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 7648.82 crore, higher than turnover of Rs 5271.95 crore registered during the previous trading session.

The broad market depicted weakness. There were more than three losers for every gainer on BSE. 2,223 shares declined and 749 shares rose. A total of 119 shares were unchanged.

Index heavyweight Reliance Industries lost 2.54% to Rs 923.50.

Index heavyweight and cigarette major ITC dropped 2.06% to Rs 261.75.

Index heavyweight and housing finance major HDFC fell 1.14% to Rs 1,848.70.

Bank stocks edged lower. Among PSU bank stocks, IDBI Bank (down 5.24%), Syndicate Bank (down 4.41%), Central Bank of India (down 1.67%), Andhra Bank (down 3.84%), State Bank of India (SBI) (down 2.02%), Punjab National Bank (down 4.03%), Bank of Baroda (down 4.27%), Canara Bank (down 4.39%), Bank of India (down 3.65%) and Union Bank of India (down 2.19%) fell.

Among private bank stocks, Axis Bank (down 0.35%), RBL Bank (down 1.46%), Yes Bank (down 0.61%), Kotak Mahindra Bank (down 0.63%) and IndusInd Bank (down 0.69%) fell. ICICI Bank (up 1.43%) and HDFC Bank (up 0.48%) rose.

Federal Bank lost 7.51%. The bank's net profit rose 26.43% to Rs 260.01 crore on 6.76% growth in total income to Rs 2729.83 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 15 January 2018.

The bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 2.52% as on 31 December 2017 as against 2.39% as on 30 September 2017 and 2.77% as on 31 December 2016. The ratio of net NPAs to net advances stood at 1.36% as on 31 December 2017 as against 1.32% as on 30 September 2017 and 1.58% as on 31 December 2016.

The bank's provisions and contingencies rose 2.27% to Rs 162.43 crore in Q3 December 2017 over Q3 December 2016.

Metal and mining stocks dropped. Steel Authority of India (down 5.99%), Bhushan Steel (down 5.07%), Vedanta (down 2.7%), Tata Steel (down 2.16%), NMDC (down 3.82%), Hindalco Industries (down 2.4%), JSW Steel (down 1.32%), Hindustan Zinc (down 2.06%) and National Aluminium Company (down 8.37%) edged lower. Jindal Steel & Power gained 1.01%.

In the upcoming budget 2018-19, the metal industry is expecting a push for use of indigenous products, encouraging Make-in-India and increased spending on infra project including housing for all and roads.

Buying activity was witnessed in IT stocks. HCL Technologies (up 4.61%), Infosys (up 3.93%), and Wipro (up 4.88%) edged higher.

TCS gained 3.77% after the company announced the launch of TCS HOBS (Hosted OSS/BSS), a TM Forum certified platform for digital enterprises, on Microsoft Azure. The announcement was made during market hours today, 16 January 2018. The cloud ready TCS HOBS platform will enable customers to get to market quicker and benefit from a pay-as you-use commercial model.

Separately, TCS said that M&G Prudential, the UK and European savings and investments business of Prudential plc, entered into a new agreement with the company to digitally transform their business and deliver enhanced service for its UK savings and retirement customers. The value of the agreement exceeds 500 million pounds or $690 million over 10 years and covers the support of over 4 million customer policies. The announcement was made during market hours today, 16 January 2018.

Tech Mahindra rose 2.56% after the company said that it partnered with ContextSpace Solutions, a privacy research and development firm based in Israel, to develop the world's first global software privacy ecosystem, MyData Shield. Providing a comprehensive approach to data protection thereby delivering privacy by design and by default, the cloud-based software privacy ecosystem enables corporate software developers and start-ups to meet tough, global privacy and data protection regulations.

By 2020, over one-third of all data will live in or pass through the cloud, with data production in 2020 being estimated at 44 times greater than it was in 2009.Tech Mahindra issued the press release on its website yesterday, 15 January 2018.

Realty stocks declined. Indiabulls Real Estate (down 5.95%), Unitech (down 8.06%), Sobha (down 1.63%), Oberoi Realty (down 0.67%), DLF (down 3.67%), HDIL (down 2.67%) and Phoenix Mills (down 3.56%) edged lower.

Severely impacted by various reforms like RERA, GST and demonetisation, the realty sector is reportedly pinning its hopes on Budget 2018-19 for relief measures like lower taxes and infrastructure status. Industry players are expecting rationalisation of the GST rates from the current 12% to 6% and bringing stamp duty under the ambit of GST. Single window clearances for all approvals and additional tax incentives for first time home buyers are also expected.

ICICI Lombard General Insurance Company rose 3.81% after net profit rose 5.2% to Rs 231.76 crore on 9.60% increase in total income to Rs 2019.77 crore in Q3 December 2017 over Q3 December 2016. The result was announced during trading hours today, 16 January 2018.

Delta Corp surged 3.62% after consolidated net profit jumped 344.7% to Rs 44.74 crore on 62.6% growth in total income to Rs 170.10 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 15 January 2018.

Gujarat Narmada Valley Fertilizers & Chemicals lost 10.23% after the company said that it has indefinitely closed its TDI-II plant at Dahej following leakage. The announcement was made during market hours today, 16 January 2018.

GNFC said that in the morning on 15 January 2018, there has been a sudden leakage at TDI-II plant, Dahej, which called for plant shutdown at Dahej. Due to safety measures already put in place by the company over a period of time, neither there is any property damage nor any loss of life, GNFC said.

However, as a matter of abundant precaution, management has decided to close the plant indefinitely till the root cause is thoroughly analysed, reviewed and necessary further safety measures to be taken are fully evaluated in addition to current safety precautions, the company said.

Among macroeconomic data, exports rose 12.36% to $27.03 billion in December 2017 over December 2016. Imports rose 21.12% to $41.91 billion in December 2017 over December 2016. The trade deficit for December 2017 was estimated at $14.88 billion as against the deficit of $10.54 billion during December 2016.

Overseas, most European stocks edged higher as investors awaited the release of corporate earnings. On macro front, the trade surplus in the 19 countries sharing the euro expanded in November to its highest point in eight months. The European statistics office Eurostat said the euro zone's surplus in goods trade rose in unadjusted terms to 26.3 billion euros in November, up from 18.9 billion euros in October. It was also higher than the 23.8 billion surplus recorded a year earlier.

Asian stocks gained, erasing early losses amid announcements of corporate earnings. US stock markets remained shut yesterday, 15 January 2018, for the Martin Luther King Jr. holiday.

#Today, the stocks of 3i Infotech Ltd (CMP: Rs.8.15), inspite of coming out with decent set of numbers since the last few quarters, hit the lower circuit, due to some chartical (technical) adjustments and should not be a cause for worry. 

On the other hand most of the IT heavyweights reaped solid gains during the session after global brokerage firm Morgan Stanley upgraded ratings for Infosys, Tech Mahindra and HCL Technologies to overweight. The Nifty IT index jumped 3.65% to 12,430.95 with 9 out of 10 constituents ending in the green and 1 in the red. The share of 3i Infotech Ltd is expected to bounce from around Rs.7.9-8 levels and move northwards, for shot term targets of Rs.13-19.

#The shares of HDIL today touched Rs.66 intraday before closing at Rs.63.85. The real estate sector has been battling the triple shocks of demonetization, RERA and GST. The sector is yet to show significant signs of recovery, new figures from the capex-tracking database of the Centre for Monitoring Indian Economy (CMIE) show.. Project announcements in the December quarter plunged to their lowest since 2005, marking a fall of 91% from the year-ago period, the data shows. The property developers are hoping that in the ensuring budget, there would be  a revision in GST rate. A buyer of an under-constructed property faces an effective GST rate of 12% since it is considered as availing of services from the builder. But a sale of a completed property is not considered as rendering of services. 

Credit Suisse, in a December note, said the price arbitrage between under-construction and fully constructed houses has gone up significantly due to GST tax, slowing down of sales of under-construction houses and squeezing of developers' balancesheets. 

The demand for the sector remained sluggish, with seven top cities sitting on an unsold inventory of 6,85,000 housing units by the end of September quarter. As per Cushman & Wakefield, the housing sector witnessed a 35% fall in new supply across eight major cities to about 74,000 units in 2017. Launches of low-cost homes rose a modest 6% during the year. RERA requirements have pushed back launches by developers who are unable to meet the eligibility criteria, Credit Suisse said. 
Developers are also pushing for abolition of stamp duty, which continues to remain in force, even after implementation of GST. Granting of infrastructure status to the real estate sector for the affordable housing sector was the biggest highlight of the 2017 Budget.

On the positive side: Home loan rates have fallen by more than 250 basis points over the last two years and the race to acquire market share in affordable housing has only heated up more. This is all the more so given the government’s push to affordable housing. To make the housing market more inclusive, the NDA government has offered heavy subsidies on mortgage loans to buy what are now called affordable homes. And this has been the fastest growing slice of the mortgage loan pie since FY16. Under Pradhan Mantri Awas Yojana, the government offers interest subsidy of 6.5% to economically weaker sections on their home loans. These are individuals with income of up to Rs.3 lakh are the biggest beneficiaries of the interest subsidy.

~~with inputs from Capital Market - Live News...