Friday, January 12, 2018

Market Pulse
Key benchmark indices edged higher in early trade with the two key benchmark indices hitting record highs. The Sensex is now trading at 34,608.21 up 104.72 points or 0.30%, while Nifty is now trading at 10,682.65 up 31.45 points or 0.30%.

Among the secondary indices, the S&P BSE Mid-Cap index rose 0.41%. The S&P BSE Small-Cap index advanced 0.65%. Both these indices outperformed the Sensex.

Overseas, Asian stocks edged higher after strong lead from Wall Street. US stocks surged to close the session at record highs yesterday, 11 January 2018 as investors bet economic growth would pick up steam.

Back home, the breadth, indicating the overall health of the market, was strong. On the BSE, 1,056 shares advanced and 256 shares declined. A total of 48 shares were unchanged.

TCS was down 1.16% at Rs 2,756. The company's consolidated net profit rose 1.31% to Rs 6545 crore on 1.18% growth in net sales to Rs 30904 crore in Q3 December 2017 over Q2 September 2017. The result was announced after market hours yesterday, 11 January 2018.

Separately, TCS today, 12 January 2018, announced that it has entered into an agreement with Transamerica, a leading provider of life insurance, retirement and investment solutions, to enable the transformation of administration of its US insurance and annuity business lines. The multi-year agreement is worth more than $2 billion in revenues, and is expected to be completed by the second quarter of 2018, the company said. The announcement was made before market hours today, 12 January 2018.

IT major Infosys was up 0.32% at Rs 1,079.05. The company is scheduled to announce Q3 December 2017 results today, 12 January 2018.

State Bank of India (SBI) advanced 0.6% at Rs 303.80 after the bank said that the proposal will be submitted to executive committee of central board (ECCB) on 17 January 2018, for approval for issuance of long term bonds of Rs 20000 crore for financing of infrastructure and affordable housing in domestic and overseas market instead of Rs 5000 crore as intimated earlier. The announcement was made after market hours yesterday, 11 January 2018.

On the macro front, the government is scheduled to announce industrial production data for November 2017 today, 12 January 2018. India's industrial production increased by 2.2% year-on-year in October, easing from an upwardly revised 4.1% gain in September.

The government will also announce today, 12 January 2018, inflation data based on consumer price index (CPI) for December 2017. Consumer prices increased 4.88% year-on-year in November, higher than 3.58% in October.

Today's Call:
#Buy Jai Corp Ltd at around Rs.211, T: Rs.292--340, SL: Rs.202. It is a completely debt free company belonging to Anil Ambani's half brother Anand Jain. It is into SEZ and Port Developments. It VC funds in the real estate sector and is into making PP/PE woven products (Jumbo bags) and so on....
There were recent media reports that Reliance Industries Chairman Mukesh Ambani, through his personal investment firms, is in talks to buy out BSE-listed Jai Corp’s 24% stake in Navi Mumbai Special Economic Zone (NMSEZ). If the deal goes through, Ambani will be the largest shareholder of the NMSEZ with a 48.1 per cent stake.
Last week, the NMSEZ project received the go-ahead from the Maharashtra government-owned City and Industrial Development Corporation (Cidco) for its conversion into an industrial city. When a stock  gives multi-year high, it generally gives huge returns. I have a target of Rs.900-1100, in the next 3-4 years. Last time when the stock rose from Rs.50, many I am told became millionaires, within 2-3 years. If the scrip of GVK Power and Infrastructure Ltd (Rs.25.60) has been rising due to the announcement of Navi Mumbai Airport and Tans-harbour link between Navi Mumbai and Sewri in Mumbai, the stock of Jai Corp Ltd should also  rise, anchoring on the same logic.  I have been recommending the stock of Jai Corp Ltd since 2013, from Rs.67-68 levels.

#The stock of TV Vision Ltd has been hitting the upper circuits since it was being recommended around Rs.21. Those who are holding can continue to the same. 

#Those who are holding the shares of Videocon Industries Ltd (Rs.24.70) from around Rs.12.50-13, should continue to hold for a target above Rs.100. The company has huge OIL ASSETS whose valuations are rising along with a spike in the crude oil  prices. You should therefore accumulate in every intraday dips, as mentioned earlier.

#Those who are holding the shares of Sri Adhikari Brothers Television Network Ltd (Rs.34.25), can continue to hold, as the scrip was able to cross the resistance zone of Rs.31-32, with ease. The stock has hit the upper circuits even today -- like TV Vision Ltd, it is hitting the upper circuits since it was recommended some days back.

#Those who are holding the shares of Pincon Spirit Ltd (Rs.44.50) from around Rs.38-39, should book complete  profits and wait for the price to stabilize before fresh entry. For the time being, this call is closed. 

#Buy the shares of 3i Infotech Ltd at around Rs.9-9.10 for a short term target of Rs.13. The company's consolidated net profit rose 40.55% to Rs.22.77 crore on 3.22% rise in total income to Rs.243.75 crore in Q3 December 2017 over Q2 September 2017.
The stock had outperformed the market over the past one month till 11 January 2018, jumping 125.26% compared with the Sensex's 3.13% rise. The stock had also outperformed the market over the past one quarter, surging 118.5% as against the Sensex's 8.39% rise. The scrip had also outperformed the market over the past one year, gaining 42.35% as against the Sensex's 27.13% rise.
The small-cap company has an equity capital of Rs 1334.15 crore. Face value per share is Rs 10. 3i Infotech provides software solutions and a wide range of IT services.

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