Rs.500 notes: To be or Not to be....!!

After my article on my blog: SumanSpeaks, titled "Why is Rs.500 note banned in state run non-AC buses"; regarding the harassments faced due to non-acceptance of Rs.500 notes in Non-AC buses in Bombay; the administration has perhaps woken up from deep slumber.

On my way from Dombivli to Vashi (New Bombay), I found this conductor accepting Rs.500 note/s. 

After some initial hesitation and repeated requests he decided to pose/stand in front of my camera...Thank you gentleman, hope the erring ones will take cues from you.

Now if you face such problems in Bombay toss these photos in front of them. 

Hope the agencies of the state government of Maharashtra running bus services in Mumbai (Bombay), stops flouting the laws of Indian Union.

Bus No: MH-43 / H-5283

New Offer: Sit at Home and Earn through Proxy

Dear friends, now get 5-10% on your investment in equity market per month, through daily / short term share trading. 

Features:

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2. After opening the Demat (and Trading) Account, the trader/investor will have to deposit a minimum seed capital of Rs.50,000-1,00,000; which can be increased later, if you are satisfied with the performance.

3. All the profit above 10% per month will go the account of my firm. This means say in a particular month you make Rs.15,000 on Rs.100000; you have to deposit Rs.5000 in my Firm's account; your account will get Rs.10,000 (max) even if the total profit in a month is 50,000.

4. The trading will be done by me only in A-group and select B-group shares both in the cash and futures market. The profit will be calculated within the 1st week of the next month and the transaction squared off.

5. You have to pay an advance fee of Rs.15000, which will be returned to you once you leave the service. 
This has been deliberately done to stop (or put a check on the activities of) the frauds, who come in many forms (Doctors, Engineers, IT professionals, Businessmen, Army Colonels, NRIs, etc) and who suddenly vanishes without paying any respect to the contractual agreement--all my hard work going down the drain.

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This offer is valid for a limited period only, as there is a limit on the number of accounts, I can personally handle in a day.

Jindal Steel and Power: Buy

Buy Jindal Steel and Power Ltd at Rs.66-66.5, T-Rs.84+, SL--Rs.61.

According to media reports, Naveen Jindal-promoted Jindal Steel & Power Limited (JSPL) is in advanced discussions with Adani Group to sell its power generating subsidiary - Jindal Power (JPL).

Moreover, when most of the steel counters are moving up at this moment, then this stock should also follow the pattern---therefore strong buy recommendation.

Why is Rs.500 note banned in State Run Non-AC buses?

Rs.500 note cannot be used in non-AC BEST buses

Rs.500 is BANNED in Non-AC state run buses (BEST, NMMT, TMT, KDMT, etc) in Mumbai (Bombay). These buses of sundry banners are run by various divisions of the government of Maharashtra, especially the Municipalities.

The conductor simply refuses to take the note even if he/she does have change in its kitty; on the pretext that it has duplicates in the market. It is to be noted that Rs.500 note is a legal tender.

Oh, is it??!! But then why is the government of India allowing even high value banking transaction with such (Rs.500) notes? Why is the government not picking them up and destroying them,  if the matter is so serious, why??

Moreover, if there was no change for Rs.31-ticket (Mhape to Dindoshi) then the case would have been different. Isn't it? But it is a serious criminal offence, a case of public harassment.

As  a fallout of this, I had to get down twice from such buses and had shell out a high auto rickshaw charge/fare, while on my way from Mhape (New Bombay) to Infinity Mall, Malad (Bombay).

I was infact surprised to see a few Marathi speaking commuters supporting  this Criminal offence (using often heard typical Mumbaiya lingua of "Tum and Tu") !!!! 

The conductors of many such buses commented in their own style. One said, " Sabko malum hai ki Rs.500 ka note, non-AC bus mein chalta nahin, tumko kaise malum nahi hai?" (everyone knows that, how you do not know)?

When I said, I will call the media guys to publish such nees in leading dsilies, one such undaunted conductor on board the bus to Dhindoshi (Goregaon) from MBP (Mhape) said sternly, "Kissi ko bhi bulao, Jo tumhare marji karo, lekin bus se abhi utro, nahi to bus age nahi jayega, yahi pe khada rahega" (You call whoever you like, but get down first or else the bus will not move from here). Who gives these guys such absolute powers to commit such types of criminal offence, with impunity?

It is criminal offense to refuse a currency note issued by the Government of India, without any valid reason. I think like me, many other passengers have already suffered such harassments in the hands of drivers and conductors of the state run buses in the.

Moreover, why there is no Private sector participation in this space? Why is the government of Maharashtra so keen to support this loss making, white elephant?

Is Bombay going to the dogs? What is the current BJP government doing here..? Should I file a PIL or Police complaint against the government of Maharashtra?

Banned in Maharashtra government
 run non-AC buses

Also, I have pointed out in many occasions that not only the conductors but most of the state run buses are Ill-mannered and starts the buses before the commuters have actually boarded them, creating ample chances of accidents? 

What is solution guys? Why is the government of Maharashtra bent on harassing the common man, on the streets?

BHEL: Buy

CMP: Rs.107

The public sector engineering behemoth, BHEL is looking to break out of the current ranges and is all poised to touch Rs.125-127, in the short term.

Those who have missed the 2nd rally of Vedanta Ltd can try this scrip, keeping a strict stop loss of Rs.103. This is a must buy for every portfolio, as the Narendra Modi government is betting on smart cities.

Coming to fundamentals it is seen that on account of the poor state of the entire power sector, BHEL’s receivables have remained high. The company’s receivables stood at Rs.35,900 crore, more than its annual revenue of Rs.30,667.63 crore in March 2015. However, its management pointed out that about 50% of it is deferred debt which will be due for collection once certain milestones are achieved and the remainder are collectibles, of which over Rs.10,000 crore are more than a year old.

The Kotak Securities says FY16 will be a strong year for Bhel with orders booked at Rs.28,300 crore and the company is L1 in about Rs.17,000 crore, most of which are expected next year. For the first nine month of the current fiscal, Bhel’s order inflow was Rs.35,000 crore which translates to around 9-10 GW of power equipment’s. JM Financial has pointed out that the company’s management hopes to end the year with 15-16 GW on inflows versus 4-5 GW in the previous year.

Consensus estimates of analysts suggest that the company can touch a revenue of around Rs 36,000 crore by FY18.

Moreober, BHEL is a debt-free company and if the government’s measures of Make in India and other electricity reforms are to take off, the company is ideally positioned to capitalise on it. Though 80% of current revenue and order book is from power sector (largely generation), BHEL has taken other initiative to augment growth in future in the other segments.

Industrials which accounts for nearly 20% of the revenue and order book and caters to segment like power transmission, railways, water treatment, defence and solar is likely to see action in the near to medium future.

The government’s initiative of strengthening the state electricity boards through UDAY is likely to see order flows increasing in the transmission sector rather than generation.

BHEL has significant presence in the field of power transmission in India with a wide range of transmission systems and products in its portfolio. The company is one of the leading players in transformers in the country and has started booking in big orders in the space.

In order to capitalise on the solar sector, the company is capitalising on its knowledge in the sector. BHEL manufactures space grade solar panel and space grade batteries in association with ISRO. All Indian satellites launched by ISRO are equipped with BHEL manufactured solar panels since 2002 and batteries since 2005. The company is planning to ramp up its cell & module production capacity and enhance EPC capabilities to address the domestic market demand.

In railways BHEL provides electrical propulsion system and its controls and accounts for more than 40% of electric locomotives in operation by Indian Railways. The company is augmenting its locomotive capacity and tying up with global companies to meet the increased demand from dedicated freight corridor.

BHEL is an established supplier for defence equipment. The company is working closely with various defence research institutes of the country to develop new products under the Make in India programme. It has also tied up to address the business opportunity of producing six submarines for Indian Navy.

While it is still early days for the industrial segment to provide the next leg of growth opportunity, but the BHEL is well placed to capitalise on the opportunity.

The company is available at less than its book value (RRs139.26), with nearly half of its market capitalisation in cash as per last balance sheet. Dividend yield at current price level is still around 1.08% thus giving some more room before it becomes very attractive.

Recently, there were some media reports that the state-run power gear maker BHEL had beaten Chinese rivals to bag a contract for building $1.6-billion coal-fired power plant in Bangladesh, giving the Narendra Modi government's "Make in India" initiative a shot in the arm and writing down a reference for similar projects worldwide.

BHEL has also beaten India's L&T to emerge as the lowest bidder for the plant to be built at Khulna, some 450 km south-west of capital Dhaka. The contract would be the biggest overseas power project for BHEL, which does not have a major footprint abroad. More importantly , the Bangladesh contract would help lay down a new reference for BHEL and qualify it to compete for projects worldwide.

The contract would also breathe life back into the company's order book, which has remained flat in the absence of greenfield projects being undertaken in recent times, especially in the private sector.

But the victory comes with a hefty dose of financial steroid in the form of interest equalisation support from the government and commitment of 70% funding at a concessional interest rate. The financial package was available to L&T also. The government bears part of the interest burden under the interest equalisation scheme so that the borrower does not pay the entire interest. The package includes a 20-year dollar-denominated loan at 1% above the benchmark Libor.

The government also supported BHEL by persuading Bangladesh to scrap a contentious clause in the bid. Initially, the project promoters--Bangladesh India Friendship Power Company, a joint venture between NTPC and Bangladesh Power Development Board wanted to qualify only suppliers who had a 500 mw plant operating overseas.

This would have disqualified Bhel since it does not have any power plant of that size operating abroad.

However, this clause was scrapped after New Delhi took up the matter with Dhaka. The contract marks a reversal of fortune for BHEL, which has been lagging Chinese competitors who usually sweeten their bids with soft financing and credit lines for other projects from the go vernment.

The groundwork for the power plant was laid during the 2010 visit of Bangladesh PM Sheikh Hasina to India. An agreement envisaging wide-ranging energy ties between the two sides was signed during the visit. India has laid a transmission line to link the grids of the two countries and supplying 500 mw through it.

Besides, on the Budget day, the FM announced some measures, which are likely too be a major boost for power sector--at least some sentimental push. This may result in more power equipment orders for the company. The Finance Minister Arun Jaitley said the government has a target of 100% village electrification by May 1, 2018.

Chartically speaking, the stock closed above its 21 DSMA, which reflects its bullish trend. Also, you can see that "Three White Soldiers" pattern, has been formed on the daily candle stick chart, with an inverted hammer in between; again showing that the bulls are not ready to give up the fight and is infact in a leading position.

Note: The scrip of BHEL was recommended to the Premium Group members during market hours, today (Friday).

Vedanta Ltd: Book Profits

Vedanta Ltd, today made a high of Rs.80.65 in the NSE, which is very near the target price given by a brokerage house. 

The current price of Rs.79-80, which though has given a break out on daily chart is unlikely to sustain, as the fundamentats simply do not support the price amidst, the falling crude oil price (once again).

Moreover, the  Nifty has already tested the key Resistance zone of 7320-7365 (7372.45) today. We therefore, need to see if this zone is broken by the bulls; which is unlikely at the moment, especially when the Moody's have downgraded China and the crude oil prices are again on a downward spiral.

Therefore, my suggestion would be to book profit at Rs.79-80, and wait for dips around Rs.73, to enter again.

Vedanta wins Chhattisgarh gold mine in India's first-ever auction

Feb 28, 2016: Raipur: The first-ever auction of a gold mine in the country was held in Chhattisgarh on Sunday, Vedanta Ltd won the auction for Baghmara (Sonakhan) gold mine with its highest bid of 12.55 percent of IBM (Indian Bureau of Mining) price of Rs 74,712/ troy ounce (1 troy ounce = 31.10 gram), official sources said.

The production from the Baghmara mine can reduce the gold imports into the country that cost it $36 billion last year, the state mines department officials said.

This was the first time a composite license for gold mining was given in the country, officials added.

The mine is situated in Balodabazaar-Bhatapara district of Chhattisgarh, 130 km north-east of the state capital Raipur.

Vedanta, a unit of London-listed Vedanta Resources Plc, beat three other bidders in the auction of the Baghmara mine in Chhattisgarh, said the head of the state's Directorate of Geology and Mining, Reena Kangale, adding she expected mining for potential reserves of about 2,700 kilograms to begin in two years.

A troy ounce is equivalent of 31.10 grams.

In a statement, Vedanta said the block measuring 6.08 square kilometres required extensive exploration and that the process will commence in "due course".

India's insatiable appetite for gold has already prompted the government to raise import duties and launch a scheme aimed at mobilising a pool of over 20,000 tonnes of the metal lying idle in homes and temples.

Still the government has failed to curb imports by the world's second-biggest consumer, where gold is regarded as the highest form of gift for gods and humans alike.

The absence of local production has scuppered efforts further.

Federal Mines Secretary Balvinder Kumar last week told Reuters the government planned to auction at least three gold mines in 2016.

Source: First Post

DO YOU KNOW

Photo: Internet

Over the past 18 months, crude oil prices have fallen to below $35 per barrel from their apex of above $110 per barrel and since then the price have been on a downward swing, following a rock and roll path.

"The key takeway from the current volatility of crude oil prices is that we are starting to see a fall in production and it’s going to continue week-to-week," said Rob Thummel, a managing director and portfolio manager at Tortoise Capital Advisors LLC who helps manage $13.5 billion. "The theme of the earning calls has been the cutting of production forecasts."

Amidst extreme cimpcomplexities, implementation of the freeze remains unclear because Saudi Arabia and Russia said their commitment depends on other nations participating. 

Moreover, Iran’s cooperation is crucial to the success of the plan to halt the fall in prices, according to Daniel Yergin, vice chairman of IHS Inc. 

The pact will have “little impact on the oil market as proposed, while there remains high uncertainty that it even materializes,” said Goldman Sachs Group Inc.

On the other hand Iran is seeking to boost output by 1 million barrels a day and regain market share. The nation should increase production by 500,000 barrels a day by March 20, the end of the Iranian calendar year, Shana reported on Wednesday, citing Roknoddin Javadi, managing director of National Iranian Oil Co.

Now if we are talking of a freeze in production, then there are two things to consider: a freeze in production which maintains the oversupply situation and so it cannot sustain positive price movement on a long term basis and if the freeze is maintained and economic growth picks up, then there is an economic growth that will drive demand to meet up with supply.

Now while CMC Markets, a UK-based trader, in its analysis believes that oil prices are going to have to rise at some point, it still recognises that there is so much production currently underwater.

CMC Markets notes that oil prices at $34 per barrel could be the next resistance point for the commodity. It explains from a technical perspective that if oil can break above $34 per barrel for a while, then the northwards rally could have some momentum.

Again, at $35 per barrel, many oil and gas companies are cutting their expenditure on energy projects. Royal Dutch Shell for example announced earlier in the month that it had cut its 2016 capital spending to $33 billion, down from its previous projection of $35 billion.

Similarly, reports indicate that US Oklahoma-based Continental Resources also plans to reduce its investment this year by 66 per cent.

Meanwhile, favouring the crude oil bulls, there were media reports that the US oil rig count slided for ninth straight week. The number of U.S. oil rigs fell by 26 to 413 for a ninth straight week of declines to the lowest level since December 2009, according to the latest survey from Baker Hughes reported Friday.

The total rig count, which includes one fewer gas rig for a total of 101, fell by 27 from last week to 514 and is now down 796 rigs from last year's 1,310, with oil rigs down 606, gas rigs down 188, and miscellaneous rigs down 2.

Analysts, across the broad spectrum believe that the reduction in capital investment and rig count is not just expected to allow oil and gas companies to save funds to strengthen their balance sheet position, but would also help them to bridge the gap between supply and demand in the coming months.

Thus, at present there is a 50:50 chance for a likely, positive price movement in the near future. This is a tad better than the earlier 30:70 or 40:60 chances. 

In such circumstances, it would be prudent to re- enter energy or its related counters (Tata Steel, Vedanta Ltd, Hindalco, etc), this week; of course with strict stop losses.

Letters from the Blog Readers

Dear Suman Mukherjee Sir,

Good Morning.

I suppose in point number 4 for Infinite Computer Solutions, target price is 220-225 as the current buy price is 180. 

Thank you Sir for the good work that you are doing by helping small investors like us.

Best Regards,

Shaukat Ali Ansari

                                                   ---x---

Yes, you are right!! Thanks a lot for the required correction.

Important

1. Those traders who entered Vedanta Ltd at around Rs.64-65 are suggested to book profit at Rs.75-74 and wait on the sidelines for the scrip to come around Rs.67-69, for taking fresh positions.

The crude oil prices have again started to play rock and roll and in such circumstances it would be better if you ply safe.

2. Rasoya Protein Ltd (Re.0.25) is yet to start its main plant and its power plants. Therefore, the investors are suggested to refrain from taking fresh positions in the counter.

3. This time many traders are expecting some form of incentives for the Gems and Jewelry sector, in the upcoming budget. Hence, traders can increase their holdings in Tara Jewels (Rs.42), Gitanjali Gems Ltd (Rs.33), P C Jeweller (Rs.401.25), etc.

4. Since the crude oil prices have again started to slip, it is better to stay put with cash, except in safe Heavens like Gold.

Note: This message was sent to the Premium Groups, today morning.

Important

The pre-budget rally is about to begin and crude oil

prices have started to inch up; hence you can think of taking positions in some of the beaten down counters:

1. Investors can take fresh positions in Vedanta Ltd at Rs.59-62, for a short term target of Rs.79-81.

2. Investors can take fresh positions in ARSS Infrastructure Projects Ltd at Rs.28-29 for short term targets of Rs.35-37. Those who have not exited at the SL can average the share price by buying at the current levels.

3. Investors can take fresh positions in Suzlon Energy at Rs.13-13.45 for short term targets of Rs.15-17.

4. Investors can take fresh positions in Infinite Computer Solutions Ltd at Rs.180, for short term targets of R.120-125.

5. Investors can take fresh positions in Chambal Fertilizer at Rs.51.80 for a short term target of Rs.65.

6. Investors can take fresh positions in R S Software at Rs.59.60, for a short term target of Rs.65.

7. Investors can take fresh positions in Gitanjali Gems at Rs.33.60 for short term targets of Rs.39-41.

8. Investors can take fresh positions in Housing Development & Infrastructure Ltd at Rs.59.10, for short targets of Rs.67-71.

Note: This information was posted in the Premium Blog about half an hour back. The Prices mentioned are threfore the recommended prices in the Paid Blog.....

Questions From the Blog Readers

I am a regular reader of your blog.you provide very valuable information regarding the share and it is very useful to the small investors. I have (xxxx) lakh share of Rasoya protein @ .40 paise and I want to add more.How is the future of this compnay? I can hold for more than two years.

I have also (xxxx) shares of suzlon @ 15.00.How is the future of this company? I can hold as long as suggested.

Awaiting your reply....

Thanking you,

Ketan Acharya

E-mail: ketan.acharya 2002@gmail.com

                   ---------x-------

 1. Rasoya Proteins Ltd (Re.0.25) has successfully resolved a part of the GDR issue and is hoping to get a favourable verdict from the SAT. Also, it is in conversion with various lending banks to restructure its loans. The company is also taking measures to open its main plant and its power plants.

However, the last three positive news are still in the realm of speculation. Therefore, those who are punters can increase their holdings in the scrip, while risk averse investors should wait for some more time for the froth to get cleared, before taking fresh positions. For the moment the scrip is likely to trade in the range of Re.0.25-0.30.

2. The fortunes of Suzlon Ltd are still unclear. Moreover, fall in crude oil price is negative for the scrip. In such circumstances, I would suggest you to book profit in the stock at around Rs.17-18-21.70 and enter any share in the IT, FMCG or Auto space (for short term investors). However, long term investors can hold the counter with a SL of Rs.12.70.

Where is Crude Oil headed......

Photo: See it market

The Crude oil has started to move northward, following rumors of a possible OPEC-Russia talks in February to cut the production by at least 5%.

Crude Oil prices rose on Friday, rebounding more than 25 percent from 12-year lows hit last week and cutting losses for the month, on prospects of a deal between major exporters to cut production and curb one of the biggest supply gluts in history.

For the week, Brent was 7.9 percent higher and U.S. crude 4.4 percent higher, paring their monthly losses to 6.8 percent and 9.3 percent respectively.

Baker Hughes reported its weekly count of oil rigs in U.S. fields fell by 12 to a total of 498. At this time last year, drillers were operating 1,223 rigs in U.S. oil fields.

Also on Friday, monthly data from the U.S. government's Energy Information Administration showed American oil production ticked down slightly in November. U.S. output stood at 9.318 million barrels per day in November, versus 9.370 million bpd in October. 

Therefore, the moot question remains where is the crude oil headed in the short term?

Core Labs Commentary regarding Crude Oil maket in 2016:

"At current U.S. activity levels, Core predicts 2016 crude oil production to be lower year-over-year; perhaps falling bye over 900,000 bopd in 2016. This, coupled with the continuing decline in international production and the continuing increase in global energy consumption, should create a tight crude oil supply market for the second half of 2016, which should lead to increased crude prices and industry activity levels worldwide.

The Company continues to anticipate a "V-shaped" worldwide activity recovery in 2016 with upticks starting in the third quarter. Global demand for hydrocarbon-based energy continues to improve, while worldwide crude oil supply peaked in the second half of 2015, beginning a decline that Core believes will continue through all of 2016. The Company currently believes that U.S. land production peaked in March 2015 and has fallen since then by over 600,000 barrels of oil per day ("bopd"), some of which was offset by new additions to production in the Gulf of Mexico ("GOM") as a result of recent field developments coming on-line in 2015. Given the current, depressed commodity prices, Core believes further new additions to production in the GOM will not be sustainable. Based on currently available worldwide crude oil production data, coupled with internal Core Lab data, Core has increased its estimate of the net worldwide annual crude oil production decline curve rate to 3.1% from 2.5%. This additional 60 basis points decline is predicated on sharper decline curve rates for tight-oil reservoirs and the significant decline in maintenance capital expenditures for the existing crude oil production base".

While, with the current set of parameters at play it would be difficult to gauge its short term peak, but the consensus is at the $37-41 per barrel, levels.

Tumbling energy prices, stemming from worries about weakening demand from world No2 economy China, have roiled financial markets. This was a concern the Fed cited as a factor for keeping its key policy rate at 0.25-0.50 per cent on Thursday.

The Fed's worry over global and financial developments spurred selling in the US dollar against most major currencies.

Now the sudden rise in the price of crude oil has given a fresh lease of life to the commodity market. The stocks like Vedanta Resources have already started to rocket-up.

In such circumstances, I would like to go full hog in the depleted commodity sector for the time being.

Vedanta Ltd: Buy

CMP: Rs.64.4

Vedanta Ltd's June bid for the rest of Cairn India Ltd could look more rosy as the crude price moves northwards. The commodity price stability means the offer of one Vedanta Ltd share, plus preferred stock, for every Cairn share could gradually approach Cairn’s market price.

Mr.Agarwal has already taken several measure to cut costs and is in talks with banks, to restructure its debts. Anil Agarwal might even take the route of funneling cash up, through dividends or through intercompany loans as it has done in the past; as his back get pushed towards the wall, more and more. 

Moreover, in a recent interview to a financial portal, Anil Agarwal, Chairman of Vedanta Group said that although commodity prices are currently under pressure and impacting the company’s business, they will be out of this situation soon, adding that Vedanta is at a comfortable position on Zinc and crude oil prices are also close to bottoming out.

Vedanta Resources owns around 63% of Vedanta Ltd which, in turn, owns almost 65% and 60% of cash cows Hindustan Zinc and Cairn India.Vedanta Resources is a holding company and relies on cash flows from its various operational subsidiaries to service its obligations.

Global markets slumped at the start of the year on fears that a slowdown in China would spread to the rest of the world economy, while oil prices sank to 13-year lows.

Market turbulence sets the backdrop for a meeting of the U.S. Federal Reserve on Tuesday and Wednesday, while Bank of Japan policymakers gather on Jan. 28-29.

Last week, the European Central Bank signaled it could deliver further monetary stimulus, raising hopes that other central banks might take the same path.

The market rout meanwhile could throw the Fed off its course of gradual interest rate hikes.

"Attention will now turn to the U.S. Federal Reserve and the Bank of Japan's latest policy decisions later this week, with the main focus on the U.S. central bank in the wake of last month's historic decision to raise rates for the first time in nine years," said Michael Hewson, chief market analyst at CMC Markets.

Therefore, buy the shares of Vedanta Ltd at the  CMP of Rs.64.4 for short term targets of Rs.95-96. There is no need of putting any Stop Loss, as the stock is already avaialble at a dirt cheap rate.

Do you know?

Veer Energy Ltd (Rs.4.18) was recommended on 14 January, 2015 at Rs.3.30-3.50, for a target of Rs.5. That Target was reached long back. Meanwhile, the scrip made a 52-week high of Rs.6.69 on 5 January, 2016.

The company has great future ahead. Therefore, the investors are suggested to accumulate the scrip when its price stabilizes, for a target above Rs.10, in the next 18 months.

DO YOU KNOW?

In a representation made to the minister, Sopa has pointed out that as per the National Institute of Nutrition, the edible oil requirement of India with a population of 1,300 million comes up to 16.607 million tonne. As against this, the total oil availability in 2015 was 21.60 million tonne including 14.42 million tonne of imported oil, the Sopa chairman said. Seeking curb on excessive import of edible oils, the Soybean Processors Association of India (Sopa) has asked the government to fix TRQ (tariff rate quota) of one million tonne for soybean to help the industry and farmers. The reasons for the excessive import are low prices in the world market and low custom duty in India,” Sopa chairman Davish Jain said in a letter to commerce minister Nirmala Sitharaman.

According to Jain, import of soybean oil is also having a deleterious effect on Indian farmers, the soy industry and soy meal exports. The soybean industry and farmers have now reached a stage where the future looks grim, he said. The association has suggested that the government should fix a TRQ of one million tonne for soybean oil to be imported at the current rate of customs duty and any quantity above the TRQ should be charged the WTO-bound rate of 45%.

TRQ could also be fixed for other edible oils, the association said. Such measures will substantially reduce the foreign exchange outflow. In 2015, some 30.30 lakh tonne of soybean oil was imported as against 21.01 lakh tonne in 2014. The association has also made representations to food and consumer affairs minister Ram Vilas Paswan and agriculture minister Radha Mohan Singh.

This move is likely to help the soya oil making companies like Rasoya Proteins Ltd (Re.0.24). The shares of Rasoya Proteins Ltd seems to have buttoned out, with minimum downside. However, fresh buying should be avoided unless, there is some positive news regarding opening of the main plant and the power plants.

Meanwhile, the scrip of Brooks Laboratories Ltd, was recommended to the Premium Group Members at Rs.86.10 on 16 December, 2016. The scrip made a 52-week high of Rs.124.15 on 12 January, 2016 and is now trading at Rs.99.85.

Today, a well known stock from the software sector has been recommended to the Premium Group Members, for a short term target of Rs.145.

Join the Paid Service, to make maximum gains from the current market conditions, using my experience of around a couple of decades.

DO YOU KNOW?

It is an irony that even after repeated trys, Saudis have failed to drown the US by flooding the markets with Crude oil (1.8 Mb/day of production). By now the Saudi Arabia might have understood their mistake and may work towards maintaining the much sought after Demand-Supply equilibrium.

If this happens then we could see the Crude oil prices shooting above $60/barrel, triggering a rally in the Commodity market. For Indian shareholders, this could be music as most of the time, the share price movement (in the Indian bourses) had been been directly proportional to the crude price.

DO YOU KNOW?

All the GDR's of Rasoya Proteins Ltd have been converted into Equity shares and in turn there are no outstanding GDR's and hence there are virtually no GDR's being traded on the Luxembourg Stock Exchange, hence the Company has decided to voluntary delist its GDR's from Luxembourg Stock Exchange.

Shares of RASOYA PROTEINS LTD was last trading in BSE at Re.0.26 as compared to the previous close of Rs.0.27. However, the investors are suggested NOT to take FRESH positions, till some CLARITY over the issue emerges. 

WINNING STROKES: THINK DIFFERENT

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Rolta India Ltd, recommended at around Rs.92.75 to the Premium Group members on 16 December 2015, touched Rs.99.30, intra-day and closed at Rs.98.65. Tell me how many of the Free Members also made money, because the stock was also recommended in this blog at Rs.95.50? Now what to do with the scrip? Confused? Join the Premium Service!!

The price of my Paid Package/s is/are expected to increase from 15 January, 2016. Those who will enroll before that will get the subscription not only at the earlier price tag, but will also get 3 months grace. Which means the price will be Rs.10, 000 per year, for 15 months. Moreover, those who will trade through my recommended brokerage house, with a minimum portfolio size of Rs.1 lakhs, will get the Premium Subscription Free of Charge, till he/she continues trading through this platform...Also, those who are willing to invest around Rs.10-15 lakhs in share market, do let me know; I have a scrip which could double in the next 12-18 months (or may be before that). We just need to buy this scrip and keep holding. The profit will be shared in a mutually agreed ratio, between you and my firm.

Vedanta Ltd, recommended on 19 December, 2015, at Rs.84.30, today touched Rs.87, intra-day and closed at Rs.86.55. The stock will break Rs.96-97, soon; remain invested. 

TV18 Broadcast Ltd recommended on 26 October 2016, at Rs.32.75 in this Free Blog, today touched Rs.46.25, intra-day (which is the new 52-week high) and closed at Rs.45.80. Congratulations to all those who made money in this scrip. Keep visiting this blog and make money. 

Pipavav Defence Ltd today touched Rs.82 and closed at Rs.79.10, on the BSE-kindly book profits and enter either Vedanta Ltd at Rs.86.55 or Hindalco Industries Ltd at Rs.81.20.

The Stock of Gitanjali Gems Ltd (Rs.42.95) has started to look good once again. Keep buying the scrip on all declines, for a short term target of Rs.48.

DO YOU KNOW?

Photo: Maffat.com

Vedanta Ltd is a diversified natural resources company. The Company's International arm, Vedanta Resources Plc  is engaged in exploring, extracting and processing minerals and oil and gas. Its segments include Zinc-India, Zinc-International, Oil & Gas, Iron Ore, Copper-India/Australia, Copper-Zambia, Aluminum and Power. The Company produces zinc, lead, silver, copper, aluminum, iron ore, oil and gas and commercial power and has presence across India, Zambia, South Africa, Namibia, Ireland, Australia, Liberia, United Arab Emirates and Sri Lanka. The Company is also in the business of port operations in India. The Company's zinc operations are located in India, Namibia, South Africa and Ireland. The Company's iron ore operations are located in India and Liberia. The Company's copper smelting and mining operations are located across India, Australia and Zambia.

The promoters' holding in Vedanta Ltd, stood at 59.52 % while Institutions and Non-Institutions held 22.99 % and 9.91 % respectively.  

Vedanta Ltd is the only company who has resumed iron ore mining in Goa after the Supreme Court lifted its 2012 ban. The company resumed mining operation in the state in August this year.  

However, the rates at which iron ore is to be transported is the bone of contention between the mining companies and truckers. The issue started with the transportation of e-auctioned iron ore. The state government had sold a total of 7.4 million tonne of iron ore through 13 e-auctions out of the 16.56 million tonne identified for e-auction. The directorate of mines and geology had notified a rate of Rs.12.33 per tonne per km for the transportation of the e-auctioned ore on April 21. Around 1,300 trucks were engaged to transport e-auctioned and freshly mined ore from Codli to Amona/Surla by Vedanta Ltd.

Now, while, the Truck Owners Association is demanding a rate of Rs.17.63 per km, the mining firms, already reeling under the impact of a meltdown in iron ore prices and plethora of taxes, have offered to pay Rs.8 per km. 

According to Aniruddha Joshi head, corporate affairs, Vedanta Ltd, around 600 truck owners have already agreed to ply at the rate of Rs.8 per tonne per km. This brings some visibility, in the ongoing tussle between Vedanta Limited and truck owners transporting iron ore.

Therefore, the stock at the CMP of Rs.84.30, remains one of the best buys for the next 2-3 months perspective, with a SL of Rs.77 and a target price of Rs.109. 

You must have remembered that I recommended Pipavav Defence Ltd at Rs.38.75, as a sure shot BUY for 18 months  price-target of Rs.90; on 27 September, 2014 (amid all so-called-uproars and acquisitions of pumping up a loss-making-no-future-company).

I then asked all the long term investors to accumulate the scrip on all declines. After that Pipavav Defence Ltd, had almost doubled from the recommended rate, made a 52-week high of Rs.85 and is now trading at Rs.79.45. 

In a similar way, the long time investors will see  value additions, in their investments in Vedanta Ltd from the CMP of Rs.84.30, over a period of time. It is a must BUY, for all the long term investors.