Today's Brokerage Calls

[www.bmawc.com]

1. Intra-day buy IGL at around Rs.1281, SL: Rs.1268, T: Rs.1310.

2. Buy (T+4) SREI Infrastructure Finance Ltd around Rs.124, SL: Rs.118, T: Rs.136.

WINNING STROKE: THINK DIFFERENT

Future Enterprises Ltd (Rs.46.25) touched Rs.47.75, intra-day. The scrip is heading towards my LAST intermediate target of Rs.51. The stock could consolidate here for sometime before starting the next level of upmove, next year. The traders are therefore suggested to book at least 85% of the profits and hold the rest with a SL of Rs.42..

Mandhana Industries Ltd (Rs.6.75) hit another round of buyer freeze yesterday. The stock is heading towards Rs.9, stay invested.

Those who have still not entered Jai Balaji Industries Ltd (Rs.11.55) are suggested to wait and start accumulating near the support of Rs.11 -11.20.  The stock could come down near those levels, intra-day, and then move up. 

Videocon Industries Ltd (Rs.18.15) is consolidating in the current price ranges. The investors are suggested to keep accumulating the stock on intra-day dips. This stock will give you wonderful return going forward.

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Shilpi Cable Technologies Ltd (Rs.24) has broken a major support level. The traders are suggested to exit the counter, if it breaks the SL of Rs.22 or reduce their holdings at the current price ranges. Buy only above Rs.25.50. The non-risk taking investors should stay way for the time being. 

HDIL Recommended around Rs.62 some days back, touched Rs.62.80 yesterday. I am having a medium term target of Rs.91-92. Accmulate in intra-day dips. 

The scrip of Reliance Power Ltd can be accumulated around the current price ranges of Rs.40. for immediate target of Rs.45 and medium term target of Rs.51.

I have another scrip which could either double in the next 6-9 months or give good returns. It from the small/mid cap space - my specialty zone.  I am looking for potential investors/partners, who can invest around Rs.3-5  lakhs on the said counters, on a 50:50, profit sharing basis. For this you need to open an account with my associated brokerage house (www.bmawc.com - one of the biggest in the Eastern India) and then buy it and keep holding. If you are already  having an account with BMA Wealth Creators Ltd, then you  just need to change the lineage towards me -  that's all. The Brokerage is fixed @50 paisa for all portfolios below Rs.10 lakhs; for above Rs.10 lakhs, I would make it 40 paisa, for delivery and 4 paisa for intra-day. There will not be any debt funding to minimize the risk of erosion of capital, in case there is sudden correction in the share price, following some unusual happenings; like that happened in case of RCom Ltd (Rs.22.70) and many such scrips. Those who are interested can also take debt funding with 2% interest per month (on the loan amount), but I would suggest you to not to do that.....The interested candidates can send me a mail at: suman2005s@rediffmail.com/sumanm2007s@gmail.com by the end of this week. The name of the scrip will not be disclosed to the general Premium Members and in this blog - but only after it reaches my cherished target. 

Also, those who will trade through my Associated Brokerage House will get my assistance: 24x7, over Phone/Mobile and Whatsapp. They will also get Premium Service Free of Charge, apart from receiving Premium Calls from BMA Wealth Creators Ltd too, absolutely FREE.. 

Winning Strokes: Think Different

Future Enterprises Ltd (Rs.46.15) recommended around Rs.18.20, made a fresh 52-week high yesterday, as it touched my target of Rs.47, intra-day. What to do now? Join my Premium Service or trade through my recommended brokerage house, to stay ahead  of others.

After superb performance of my recommended Tata Steel from  Rs.217 to above Rs.635, I feel  soon other steel stocks will also join the bandwagon. Considering such case, I have already recommended a buy on Jai Balaji Industries Ltd at around Rs.12-12.50.

Unitech Ltd (Rs.765) seems to have never ending problems and also the management is not bothered about the plight of the shareholders. In such cases, I would suggest you to exit the stock and enter HDIL at Rs.62.

Prakash Industries Ltd (Rs.122), was recommended by me several times at around Rs.43-44, after I somehow came to know of its BJP linkage. However, considering the current scenario it would be better if you exit the scrip on rallies.

Mandhana Industries Ltd (Rs.6.12) hit another buyer freeze yesterday. Those who have still not entered the counter or want to average, can do the same.

Two Small Cap Recommendations

1. Buy Jai Balaji Industries Ltd at Rs.12.49, for a short term target of Rs.17.
2. Buy Mandhana Industries Ltd at Rs.6.12, for  a short term target of Rs.9.

Gujarat Hotels Ltd: Buy

CMP: Rs.130.60

Photo: Booking.com

Gujarat Hotels Limited (GHL), an associate company of ITC Limited was incorporated in the year 1982. GHL owns the WelcomHotel Vadodara in Vadodara which is operated by ITC Limited under an Operating Licence Agreement.

The company has a high operating margin of above 90%, but hereto the stock did not perform too well in the bourses.

You can buy the stock near the supports of Rs.127-128 for short term targets of Rs.145 - 150; as the festival season beginning with Ganesh Chaturthi, followed by Eid and Durga Pooja is likely to be positive for the share holders.

It is more or less a stable and those who prefer low Beta scrips, can go for the same. But please do keep a SL of Rs.121, in case of any market crash.

I had earlier recommended the stock on 4th September, 2006 at Rs.52, after which it made a high of ~Rs.270 in 2013 - 2014.

Winning Strokes: Think Different

The Nifty (9857.05) came in for some corrections, after hitting the much-awaited 10,000 mark; but

again recovered and closed in the green yesterday, up 4.55 points.  The Indian market has been on a roll over the past couple of quarters on the back of the implementation of GST, which the analysts feel will be able to plug some of the loopholes in the indirect tax structure. Apart from this, good monsoon and positive global sentiments, also had their own contributions in pushing Nifty northwards. It was a broad-based rally driven by fundamentals and the market has created wealth for investors across segments – be it Large-cap, Mid-cap or Small-cap.
India is an emerging market with GDP slightly upwards of $2 trillion in 2017.  India’s GDP was at $541 billion in 2003, crossed $1 trillion in 2007 and $2 trillion in 2015. The Indian economy has almost doubled between 2003 and 2007. It took four years for India’s GDP to double from $0.5 trillion to $1 trillion between 2003 and 2007 in the backdrop of better global environment; and eight years from $1 trillion to $2 trillion between 2007 and 2015, mostly due to the Reforms carried on by the earlier UPA government.

But how long this rally  will continue, on the back of (manipulated) data, presented by the current dispensation is anybody's guess. Narendra Modi's regime is the most unscrupulous government, I have seen in the last 35 years -- it can do anything to stay in power. So, are the "Bhakts", who can go to any length, including spreading lies, present fudged data, stone pelting (....remember the JNU case), lynching, verbal abuse, et all...to reach their goals. Recently, there were lot of noise regarding the abolition of the controversial, "Triple - talaq" (of Muslims), but in reality nothing much happened except the honourable Supreme Court putting a temporary injunction on the practice and asking the government to frame laws in the Parliament.
In 1906, the Bombay High Court’s SL Batchelor held the practice of "Talaq-e-Bidaat" to be “Good in Law, though Bad in Theology”, while dismissing the plaint of a Muslim woman. Around one hundred and eleven years later, a Constitution Bench of the Supreme Court, set aside the practice of Triple Talaq as unconstitutional.
What is interesting is that the minority judgment delivered by Chief Justice JS Khehar and Justice Abdul Nazeer, chose to echo Batchelor’s sentiment in the case of Sarabai v. Rabiabai. This was the longest of the three decisions, by quite some distance. Running into 272 pages, the judgment took a deep dive into the Quranic verses as well as the Hadiths, or the pronouncements of Hazarat Mohammed, on the issue of Triple Talaq.
However, in future I don't think much will happen on this front except, that the Narendra Modi's government according to my analysis might take the stand of Islamic Scholar, Taqī ad-Dīn Ahmad ibn Taymiyyah's (1268-1328 - a member of the Hanbali school of jurisprudence founded by Ahmad ibn Hanbal), position on the issue......but, the government's propaganda machine is active 24x7, spreading bluffs and concocted stories.....

Anyway, Videocon Industries Ltd (Rs.18.70) hit the buyer freeze in both the NSE and BSE. Th next targets are Rs.21-22, as mentioned in my earlier post.

There is no stopping of Future Enterprises Ltd, the stock yesterday touched an intra-day high of Rs.44.70, in the BSE. Unless, the supports at Rs.39 - 41 are broken on the downside, we can look for targets of Rs.47 - 51.

Mandhana Industries  Ltd (Rs.5.83), hit the buyer freeze in the BSE. The stock after mindless correction, is again heading towards Rs.14-15 ranges, from where it fell. Accumulate the scrip on every intra-day declines 

As expected Jaiprakash Power Ventures Ltd closed at Rs.5.92, near the upper circuits in the BSE. I am looking for targets of Rs.8 - 8.5 in the short term -- remain invested.

My recommended Tata Steel Ltd (Rs.638.95) at around Rs.2.17, made an intra-day and 52-week high of Rs.640 in the BSE yesterday. Those who are still holding can book partial profits and hold the rest with a SL  of Rs.616.

Happy Ganesh Chaturthi to all my friends and blog readers. May this festival bring happiness in your lives; may all your dreams come true.

Market Mantra

There is no stopping of Future Enterprises Ltd as the stock touched Rs.44.75 today. As mentioned earlier, you can hold the same with a SL of Rs.41.70, with targets of Rs.47-51. If you remember the stock was recommended around Rs.18.50.

Shilpi Cable Technologies Ltd (Rs.27.80) is consolidating at around the current ranges before  the next upmove. The investors are suggested to buy the scrip on every decline.

Today's recommendation: Buy Aban Offshore Ltd near the support levels of Rs.174-175,  for short term targets of Rs.188-190.

Those who are holding my recommended Unitech Ltd (Rs.7.40) from around Rs.5-5.25, can continue to do the same, with a SL at Rs.6.60.

Those who are holding my recommended Videocon Industries Ltd (Rs.18.70) can continue to hold the same, for immediate targets of Rs.21-22. The stock has hit the upper circuit today.

Mandhana Industries Ltd (Rs.5.45) is getting hammered for no  apparent reasons. The regulators are requested to look into the matter and take appropriate actions.

J P Power Ltd (Rs.5.85) could hit upper circuits today -- keep watch. Its parent company J P Associated Ltd (Rs.22) has moved up from Rs.7 something to the current price.

Tata Steel after making a high of Rs.637 today is threatenig to break the psychological barrier of Rs.650. I think you remember that the scrip was recommended at around Rs.217, last year.

Brokerage Call: BUY (T+2) Hexaware Technologies Ltd on declines around, Rs.274-275 SL BELOW Rs.270; Targets - Rs.280-284

I am looking for a fund of around Rs.5- 10 lakhs to be invested in a scrip as delivery, with no debt funding. I am sure the stock will give at least 40 - 50% returns during the period. The profit could be shared in the ratio of 45 -- 55% between you and my firm. Before,, investing, I share with you the pros and cons of investing in that scrip...but before that you need to open an account with BMA Wealth Creators Ltd (www.bmawc.com) and deposit the amount in the said demat account. The interesteed parties can mail me at: suman2005s@rediffmail.com.

Shilpi Cable Technologies Ltd: The Name of one of the Stocks Revealed....

I had in my earlier posts, spoken of a couple of stocks which are expected to give good return in  the

Photo: The Economic Times

short term: one of them is Shilpi Cable Technologies Ltd, which we entered at around Rs.26, last week. The stock has already given around 10% return to the investors....

An ISO 9001:2000 certified company, Shilpi Cable Technologies Ltd (Rs.29.80) is into the business of manufacturing RF Telecom cables and other cables which are primarily used in the telecom, automotive and consumer durable sectors.

They have a couple of plants both located in north India,, within 60 km of Delhi where these products are manufactured.

They have an impressive customer list, which includes who's who in their respective sectors: Bharti Airtel, Vodafone, Aircel, BSNL, MTNL, Honda, Ashok Leyland, Eicher Motors, Hero MotoCop, Telcom,  Maruti, among others. A third each of the company's business comes from Telecom and Automotive space, while the balance comes from other segments. 

More than 95% of the company's business comes from the domestic space and it is a net importer  of around 30% of their total sales. 

The share price of  the stock dropped from Rs.225.60 on 20 April 2017 to Rs.20 on 15 June, 2017 (BSE), only to bounce back, due to its hidden fundamentals.

A major reason for this drastic fall in the stock price was  due to an overseas lender filing a petition against the company under the Insolvency and Bankruptcy Code, 2016.

On 13 October 2015, Shilpi Cable Technologies Ltd (Rs.29.80) issued and allotted 15 million convertible warrants on a preferential basis to Shilpi Cables Private Limited, a promoter group company, at an exercise price of Rs.60 per underlying equity share of the face value of Rs.10 each, out of which 8 million warrants had been converted into an equal number of equity shares on 28 March 2016. On 12 April 2017, the company reported to the stock exchanges that Shilpi Cables Private Limited had submitted the request for conversion of 7 million of these convertible warrants into equity shares of the company as per the terms of the issue of those warrants.

The investors can still enter the scrip, with short term targets of Rs.41-47. But this is  NOT an "Investment Grade Scrip", as of now -- so you need to enter and exit the scrip fast, if you are looking for some quick bucks....

I will reveal the name of other scrip shortly, here in this blog: so keep do keep an eye on  my postings. Moreover, those who want to enroll in my new service can send me a mail at: suman2005s@rediffmail.com / sumanm2007s@gmail.com.

These days, due to some teething domestic issues and due to my involvement in Bollywood, IT (Digital Marketing, Content Development, etc) and other Sectors, I am not getting time to do the regular updates on my blog. Hope, the things will get streamlined soon...

Dear all,

To improve the customer satisfaction and to make the company (my associated brokerage house: BMA Wealth Creators Ltd) more stronger from compliance point of view, we have successfully started the "Automatic Trade Confirmation Process".

Everyday after market hours, the BMA Wealth Creators Ltd's clients will receive an automated trade confirmation call from IVR No: +918038394100.

The BMA Wealth Creators' clients, are requested to save the above mentioned cell number, answer the call/s and confirm the trades by pressing 1 (one).

This unique facility, I believe will be beneficial for clients well as the brokerage house, for the long run. 

Also, any new trader/investor/client, will get a demat/trading account, absolutely FREE of charge, along with my FREE SERVICES (with customized brokerages for HNIs).  

Also, you will get debt financing from the said brokerage house at 2% per month, on the amount of debt taken; keeping the shares as mortgage. So, if your investment capital is Rs.5 lakhs (say), then you will be given an instant debt of Rs.2.5 lakhs to purchase shares and keep holding, provided you pay an interest of 2% per month, which means on a capital of Rs.5 lakhs, you will be  permitted to take delivery of Rs.8-10 lakhs (for T+2), but will be allowed to keep holding only for Rs.2.5 lakhs after T+2 period.

If you have any query, please feel free to revert. 

Thanks & Regards,

BMA Wealth Creators' Team.

Websites: www.bmawc.com, mf.bmastock.com

IMPORTANT

I have researched a couple of high-risk-high-gain scrips, both of which are doing well during the last few days.....I'm looking for persons who can invest around Rs.5 (five) lakhs in the two scrips and keep holding. There is no position based debt holding, but pure cash buying (with investment money) for delivery. 

The investment period is 6 months and the two scrips are expected to give at least 35-45% return during the period. I again reiterate: There is no debt based position taking or position taking on debt funding --this is simply investment and hence your money is safe. 

Those who have lost money in share market can try this route to recover your cash. This is a chance which you can utilize with minimum risk. You can contact me at: suman2005s@rediffmail.com.

Mandhana Industries: Result Update

Madhàna Industries came up with a loss of Rs.76.33 Cr in Q1FY18, however it is much better than I expected. During the June, 2017 quarter the write off was Rs.363.80 Cr, due to slow moving/old moving obsolete products. This has created much difference.

Moreover, the loss of Rs.76.33 Cr in the June quarter is much less than Rs.413.53 Cr in Q1FY17. But on the flip side the company has defaulted on Loans and is in talks with the lenders to go for restructuring.

In such circumstances, I feel.the worst is over for the Mandhana Industries Ltd (Rs.8.13). Also, I feel the Narendra Modi's autocracy (damaging the ecomomy with wrong policies) will end within a couple of years as the new government takes office in 2019.

Winning Strokes; Think Different

Videocon Industries Ltd (Rs.2370) hit the upper circuits in both the exchanges. The stock should close above Rs.30, in the coming days, keep accumulating. 

Tata Steel Ltd closed at Rs.559 today in the NSE. I hope most of the short term investors, booked profit at Rs.567. The stock  if you remember was recommended at around Rs.217.

RCom closed at Rs.23.10 in the NSE. If it breaks Rs.22 on closing basis then even the long term investors should exit the counter.

The stock of Jaiprakash Associates Ltd closed at Rs.25, in the NSE. I hope most of you booked profits at Rs.26 or may be at higher levels.

Unitech Ltd yesterday, closed at Rs.7.50, after making a high of Rs.9 - plus. I hope most of the short term traders have booked complete profit in the counter. If you have still not done the same, then book complete profits.. 

WINNING STROKES: THINK DIFFERENT

1. Jaiprakash Associates Ltd (J P Associates) recommended  around Rs.7, in this blog last year made

Photo: www.virofly.com

a 52-week high of Rs.30.40 some  days  back. The investors are suggested to hold the scrip of J P Associates Ltd (Rs.28.45) with a SL of Rs.26.

2. Unitech Ltd (Rs.8.59) recommended in this blog around Rs.4.50  and then at Rs.5.25, made a  recent high of Rs.9.09. The long term investors can hold the scrip with a SL of Rs.7.80. The short term investors can book profits in the counter.

3. Both Mandhana Industries Ltd (Rs.9.29) and Videocon Industries Ltd (Rs.23.65) are seeing some corrections.. However, both the stocks should be accumulated once they start a reverse move towards the north. While Mandhana Industries Ltd is backed by ace investors like Rakesh Jhunjhunwala and Ramesh Damani, Videocon Industries Ltd  is speaking with the lenders to restructure  its loan portfolio.

4. Tata Steel Ltd (Rs.572) recommended in this blog around Rs.217, made a new high of Rs.575, yesterday. The investors are suggested to hold the scrip with a SL of Rs.566, as the stock is on an uptrend.

5. What to do with stocks like Rasoya Proteins Ltd (Rs.0.15 ), BHEL (Rs.144), Reliance Defence and Engineering Ltd (Rs.61.95), etc? To  know this, one can join my Paid (Premium) Service. Moreover, I will recommend another momentum counter very soon;  those who want to join my Premium Service can ping me at: suman2005s@rediffmail.com  or sumanm2007s@gmail.com. Also, those who will trade/invest in the market through my recommended brokerage house will get my guidance free of change; till they continue with my services. 
Another thing, I would like to mention here that is: if everyone wants FREE SERVICE from me, then how will I cover costs for my Research and other Expenditures, associated with this space ??!!  Just think and please do let me know (put your comments)....

Market Mantra

1. Buy Videocon Industries Ltd at Rs.26.70, for short term targets of Rs.33-34. The medium term targets could be Rs.61-67.

2. Mandhana Industries Ltd (Rs.11.50) is being hammered by operators before they enters. The subsidiary company, Mandhana Retail Ventures Ltd is backed by big bull Rakhesh Jhunjhunwala and seasoned market man, Ramesh Damani.

Made in Foreign

One of the chief slogans of Narendra Modi's government has been "Made in India". Under

this 'strategic partnership' model, select private firms were supposed to build militarly platforms like fighter jets, submarines and battle tanks in collaboration with foreign defence majors.

But hereto what we got on the plate is altogether a different preparation or we are till now witnessing " Made in Foreign Campaigns", at the cost of foreign exchange and BOP. Earlier, there were murmurs (Rumors) that these multi-billion dollar contracts generate high kickbacks. A visibly honest defence minister has been sent back to his home state, Goa. Who will be the new full time defense minister is anybody's guess.

According to a recent news report, Fifty-eight contracts involving Rs.1.21 lakh crore were signed by the government with foreign defence firms in the last three fiscals for procuring aircraft, helicopters and weapons systems for the armed forces.

Is the government really interested in "Made in India", story, when the defense sector is concerned? Or it is just another of those infamous "Jumlas" of Narendra Modi - Amit Shah combination ?

 Winning Strokes: Think Different

Future Enterprises Ltd recommended at around Rs.18.50, yesterday made a new 52-week high and closed at Rs.38.65 in the NSE. The next natural target comes around Rs.41-42, if Rs.37.50-37.70 holds.

Meaningless selling by the operators is pushing down the shares of Mandhana Industries Ltd (Rs.11.65) to some unbelievable levels. The company has a debt of only Rs.800 Cr and is doing SDR. It's retail arm us backed by ace investors like Rakhesh Jhinjhunwala and Ramesh Damani. 

Reliance Defense and Engineering Ltd is consolidating at around Rs.59-60, before the next round next round of upmove. This stock.like my other recommended counters like Vedanta Ltd, Himdalco Ltd, etc will invariably make new 52-week high. Keep accumulating at dips with a SL of Rs.58.

Note: I am not keeping well.since the last few days. Hence, this blog may/may not be updated regularly.

Mandhana Industries Ltd: Accumulate

CMP: Rs.12.35

A buy was initiated in Mandhana Industries Ltd considering its low debt of around Rs.800 Cr and P/BV ratio of 0.07 at around  Rs.13.50 some days back. Maintaining a positive stance, the investors are suggested to continue to accumulate the scrip on every decline since:

(i) This is the parent company of Mandhana Retail Ventures Ltd, which has a debt of only Rs.800 Cr, inspite of its sales getting hit by Narendra Modi's destructive economic policies, like demonetisation.

(ii) The bankers have already invoked, strategic debt restructuring (SDR) and the company is in the process of completing all the formalities of the invocation....

(iii) The Mandhana Retail Ventures Ltd (Rs.163.50) is backed by the Bollywood film star, Salman Khan and the ace investors Rakesh Jhunjhunwala and Ramesh Damani. Rakesh Jhunjhunwala is having a member in its board. The retail arm is almost debt free.
(iv) Yesterday, the percentage of deliverable quantity to the traded quantity was whopping 67.90%. Every trade needs a buyer and a seller for any transaction to get executed; so the percentage of delivery is important to understand the mood of the traders/investors.

Mandhana Retail Ventures Ltd

CMP: Rs.164.30

This is the retail division of Mandhana Industries Ltd (Rs.13.57), which currently has 60

Exclusive Brand Outlets (EBOs), 259 Shop-in-shops (SIS) and presence in 22 states and 68 cities, is planning to open 20 new stores every year.

As of 30 June, 2017, the ace investors Rakesh Jhunjhunwala and Ramesh Damani hold 12.74% and 1% shares of the company, respectively. Promoters Pledge Holding(Rs.Cr.): 92.52.

Mandhana Industries Ltd

CMP: Rs.13.57

Mandhana Industries Ltd is a vertically integrated textile and garment manufacturing company in India. The company produces fabrics for the domestic market and garments largely for exports. They are having their presence across operations ranging from yarn dyeing to garment manufacturing. Their business includes designing, yarn dyeing, weaving, processing, dyeing and garment manufacturing.

The company operates in two segments namely, Textiles and Garments. The Textiles segment produces greige and finished fabrics, such as cotton fabrics; yarn dyed fabrics; and embroidered, embellished, and blended cotton fabrics. The Garments segment produces various readymade woven garments, such as mens shirts; womens blouses, tops, dresses, and skirts; casual bottom wear; kids wear; sports wear; and jeans wear.

The companys customers include Aditya Birla Nuvo (manufacturers of brands like Louis Phillipe, Van Heusen, Peter England and Allen Solly), Pantaloon Retail, ITC (manufacturer of brand Wills LifeStyle) and Turtle. Their overseas customers include brands like Tommy Hilfiger, Charles Vogele, RIP CURL, All Saints, Simint, Colins, Pepe Jeans and LAFUMA.

The company demerged its retail business into resulting company, named Mandhana Retail Ventures Ltd, and all the current and future retail operations of Mandhana Industries will be carried out through it.

The company hit a all-time high of Rs.345 a share on 22 March, 2016 and since then, it has been falling. Mandhana Industries listed on 19 May 2010, with an offer price of Rs.130 a share.

The Financial Institutions/ Banks hold 2.09%, while LICI holds 1.99% of the shares of the company. 

Promoters Pledge Holding (Rs.Cr.): 10.73.

Winning Strokes: Think Different

Mandhana Industries Ltd hit another buyer freeze in both the exchanges and it closed at Rs.14.21 in the BSE. Congratulations to all those who bought the scrip reading this blog.

Reliance Defence and Engineering Ltd today clocked a huge volume of more than 38 lakh shares and closed at Rs.61.10, marginally down from its previous closing price. Also, the percentage of  Deliverable Quantity to Traded Quantity was whooping ~50%, which means large scale accumulation is going on in the counter as the shares are changing ownerships. The stock is currently placed above its 50D, 100D, 150D and 200D SMAs and EMAs, which itself is a bullish indicator. I have mentioned earlier that this stock will make fresh 52-week high in the coming days; so remain invested.

Unitech Ltd further tanked to Rs.7 today after profit booking was suggested in the counter some days back at around Rs.8.50-8.70. It is expected to slide down further and come near Rs.6. It rose suddenly because a Gujarat based operator named Arvind Bajaj, who has a large fan following in that "Brothel" called MMB gave a buy on the scrip.

I have another scrip like Mandhana Industries Ltd which could give good returns in the short term. Those who are interested to know the name of the scrip should deposit a cheque of Rs.10,000 in my bank account. You can contact me at: suman2005s@rediffmail.com.

Reliance Communications Ltd: What to do?

CMP: Rs.24.30

Photo: Evolution Athletics

Off late the shares of RCom has been moving up, on the news of a debt restructuring (debt reduction) plan and stake sell. It has steadily moved upngrom the 52 -week low price of Rs.17.80 to the CMP of Rs.24.30 in both the exchanges.

It is pertinent to mention here that, the telecom sector is passing through a financial crisis. There is a huge combined debt of more than Rs.4.5 lakh crore on the mobile operators. RCOM has a debt of more than Rs.42,000 crore, while its EBITDA is about Rs.4,600 crore. The government has set up an inter-ministerial group to address the issue of financial stress of the telecom companies.

Also, RCOM wrote a letter to IMG on 4th July, asking it to do away with the 10% cross holding norm, so that it will be able to sell its equity to the existing operators. In such a situation, only two companies are in a position to buy RCOM’s equity – Bharti Airtel, which is market leader, and Reliance Jio. In last couple of years, Bharti has bought spectrum from Vodafone, Aircel, Tikona and Telenor.

However, Reliance Jio seems to be a major contender to buy equity in RCOM. It will help the company as it will get control over whole spectrum of RCOM. It will give further lease of life to RCOM and will give more time to set its house in order and sell its properties to ease debt burden.

Though both the moves look apparently positive, but the risks involved in the short term are very high.

Since the last few months, Narendra Modi has been in limelight for all the wrong reasons: (a) Fruitless demonetisation to curb black money which swelled the death toll basket to 100 - plus, with not much effect on curbing fake notes -- bleeding the exchequer of more than Rs.10,000 crore in the form of printing new notes and logistic costs and wasting the productive banking hours, apart from keeping the bank officials busy with unnecessary works and making their lives Hell.
(b) Taxing Indians hard and making the life of businessmen miserable in the name of GST,
(c) Visiting scores of Islamic countries and burning foreign exchange (generated from poor tax payers money) for "Improving relations" and generate more investments in the form of FDI and FPI and then landing up in Modi - like stupid blunder of visiting Israel to draw their wraths, especially Iran who is a bitter enemy of Israel and finally,
(d) The unnecessary military brinkmanship in the Chinese border at the behest of a tiny neighbour, who can't even manufacture a bicycle on its own. India has $70.8 billion trade relationship with China, Narendra Modi's moronic border pursuits is out to destroy all that has been built over the years; by the prudent foreign diplomacy of his predecessors. Narendra Modi's much advertised Chinese visits have already proved to be, "Just Waste of Time and Money".  Narendra Modi is himself a product of blunder by the people of India, who believed his words and voted him, thinking that he would usher in "Ram Rajya".

Firstly, the government of India or Narendra Modi's government is involved, which has done more harm to the telecom sector than good. In fact the BJP's vocal diatribes during the UPA Regime regarding its allegations of a botched - up, discovery price of telecom spectrum has already ended-up in a smoke. In other words, the last failed spectrum sale by the NDA government once again proved the futility of the tall claims of the BJP leadership, of an imagined Rs.1.5 lakh crore loss to the exchequer.

2ndly, according to a recent article in Financial Express, a consortium of lenders to Reliance Communications (RCom) is unwilling to accede to the telco’s demand for Rs.600 crore of additional credit. The funds sought were primarily in the form of non-fund-based bank guarantees.

In such circumstances, I feel it would be prudent to book profits in the short term at Rs.24-25 ranges and wait for the scrip to break above the strong resistance zone of Rs.25.50 - 26.50 ranges. Having said this, the long term investors can keep holding with a SL at Rs.22.20.