Market Pulse

Key benchmark indices nudged higher in early trade. Stocks hovered in positive zone in morning trade. The S&P BSE Mid-Cap index was up 0.24%. The S&P BSE Small-Cap index was up 0.55%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,445 shares rose and 957 shares fell. A total of 135 shares were unchanged.

Overseas, Asian stocks were mixed as Chinese equities added to declines and a North Korean missile test overshadowed an overnight surge in US equities. US stocks rose to records yesterday, 28 November 2017 on progress towards passage of US tax cuts and a benign confirmation hearing with Federal Reserve Chair nominee Jerome Powell.

The Senate Budget Committee approved the Senate's tax plan on Tuesday, bringing the upper chamber closer to a floor vote, which is expected to take place Thursday. Meanwhile, during his testimony, Powell said that current regulations on the financials sector are tough enough. He also said he supported the tailoring of some regulations to ease the burden on small banks.

On the data front, the Conference Board's consumer-confidence index jumped to 129.5 in November, marking a 17-year high. The advanced US trade deficit in goods rose 6.5% to $68.3 billion in October. Separately, home prices rose at their fastest pace in more than three years in September.

Suzlon Energy Ltd tanked to Rs.14.60, below a key support level; after a SELL was initiated for the short term punters, in the morning following cooling down of crude oil prices. However, long term investors can hold with a stop loss of Rs.13.50.

Morning Call, Bharati Defence and Infrastructure Limited (BDIL) at around Rs.8, hit the buyer freeze. There were earlier some positive media reports on the company.

If you have missed  BDIL, then try Subex Ltd at around Rs.8.60, for targets of Rs.12-15. Subex Ltd provides software products and related services to communications service providers across the world. The company also provides implementation and customization, support services, managed services and sub-contracting services. Its segments include It operates across the Americas; Europe, the Middle East and Africa and Asia-Pacific and rest of the world.
In August, this year, there were media reports that its board has given its nod for the company’s restructuring scheme. The restructuring is a part of overall “Subex 3.0” strategy to achieve the objectives which are: segregate company’s business into separate verticals, facilitating greater focus on each vertical, enhance the ability of the company to enter into specific partnerships and to attract strategic investors at respective business levels. It's chief aim is to de-risk various business verticals from each other and enhance value for the shareholders of the company.
As of 2016-17, Subex had $115 million in debt out of which $95 million was equitized and the remaining $20 million has been paid off. "The worst is behind us. We have recapitalized the firm and prepared the company for growth," said Anil Singhvi, the non-executive chairman of telecom products firm Subex. Mr.Singhvi is also the chairman of Ican Investments Advisors and was an adviser to Reliance ADA Group for two years.

Jai Balaji Industries Ltd hit another buyer freeze in the NSE at around Rs.15.80. The stock was repeated recommended in this blog since the last few weeks.

You can also BUY Hexaware Technologies Ltd on T+1 basis at around Rs.334-335, SL: Rs.328,  T: Rs.344. This is a pure chart based call.

The Indian stock markets would continue to remain buoyant in  absence of viable investment opportunities, following a near defunct real estate market and also tepidity persisting in the precious metals sector. The investors and traders are suggested to look for good stories and invest with strict stop loss in mind. 

Today, there is net connectivity problem with Reliance Jio and hence it took a hell lot of time to update the morning inputs. I now feel that instead of Reliance Jio, I should gone for other other service providers like Bharti Airtel or Idea Cellular, as RJio has nagging problems in the Western Suburbs of Mumbai, with a chequered customer care service further making the things even worse.

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Pre-Session: Market may open higher

29-Nov-17: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 63 points at the opening bell.

Overseas, Asian stocks climbed, following a surge in US equities, and as a well-worn path of North Korean missile tests did little to dent investors' optimism in the strength of global earnings and economic growth. US stocks rose to records yesterday, 28 November 2017 as corporate tax cuts inched closer to reality after passing another hurdle in the Senate.

Back home, key benchmark indices corrected on profit booking yesterday, 28 November 2017 after rising in the previous eight trading sessions. The Sensex fell 105.85 points or 0.31% to settle at 33,618.59, its lowest closing level since 23 November 2017.

The trading activity on that day showed that the foreign portfolio investors (FPIs) bought shares worth a net Rs 12.24 crore yesterday, 28 November 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 428.15 crore yesterday, 28 November 2017, as per provisional data.

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Opportunity for Investors

Photo: Audacity Capital

There is an opportunity for those investors, who want to get a fixed monthly on their investments, away from the hustle and bustle of share market. The schemes, which are from a more than 30 year old company, are as follows:

(i) Invest Rs.5 lakhs and get Rs.49,000 per month for the next 12 months, through EMIs. That is you get Rs.(12*49,000) = Rs.5,88,000 in total, on your investment of Rs.5 lakhs; in 12 months.

(ii) Invest Rs.5 lakhs and get Rs.10,000 per month as Interest (2% per month or 24% in a year) on your investment, for the next 12 months. You will get 12 PDCs of 1 year & Promissory Note  on your investment of Rs.5 lakhs. In this case you are getting Rs.(5+1.2) lakhs = Rs.6.2 lakhs in 12 months.

This offer is initially available only for the first 200 individuals and is open till 31st December, 2017.

For more on this, please contact  me at: 

#suman2005s@rediffmail.com or 

#sumanm2007s@gmail.com on behalf of:

Mr.J Dcrus

Financial Consultant,

New Delhi, India.

WINNING STROKES

The Sensex fell 105.85 points or 0.31% to settle at 33,618.59, its lowest closing level since 23 November 2017. The index rose 45.71 points, or 0.14% at the day's high of 33,770.15. The index fell 147.79 points, or 0.44% at the day's low of 33,576.65.

The Nifty 50 index fell 29.30 points or 0.28% to settle at 10,370.25, its lowest closing level since 23 November 2017. The index rose 10 points, or 0.10% at the day's high of 10,409.55. The index fell 44.35 points, or 0.43% at the day's low of 10,355.20.

The S&P BSE Mid-Cap index rose 0.10%. The S&P BSE Small-Cap index rose 0.27%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, once again turned positive from negative in late trade. On the BSE, 1,386 shares rose and 1,333 shares fell. A total of 158 shares were unchanged.

The total turnover on BSE amounted to Rs 4245.83 crore, higher than the turnover of Rs 4087.13 crore registered during the previous trading session.

Reliance Communications (RCom) fell to Rs.12.20, intraday from around Rs.14, which it touched last week. The stock closed at Rs.12.90 in the BSE.. If you remember, I had asked all to exit the counter on every rise, when it fell to all time low of around Rs.9.60 in the BSE. 

Meanwhile, RCom issued a clarification to the stock exchanges after market hours yesterday, 27 November 2017, with regard to media news titled China development bank files insolvency case against Reliance communications. RCom said that the company has not been served any notice of the application filed by China Development Bank with NCLT, as reported in the media.

RCom is engaged through the joint lenders forum (JLF) with all its lenders for a successful resolution of the strategic debt restructuring (SDR) process. The China Development Bank has also been actively participating in the JLF. RCom said it is therefore, surprised by the untimely and premature action of the China Development Bank of filing an application at NCLT. RCom added that it continues to remain engaged with all lenders including the China Development Bank and is confident and committed to a full resolution with the support of all the lenders.

Separately, RCom said it has entered into a binding share purchase agreement with Pantel Technologies and Veecon Media & Television for sale of its subsidiary Reliance BIG TV (RBTV), engaged in the business of direct-to-home (DTH) services across India.

Pursuant to this transaction, the buyers will acquire the entire shareholding of RBTV with business on an as-in, where is basis, along with existing trade and contingent liabilities. The transaction will help to reduce the liability of unsecured creditors, benefitting all stakeholders, including lenders and shareholders of RCom. The transaction is in consonance with RCom's stated objective to focus on B2B businesses of the new RCom, the company said in a statement.

Future Enterprises Ltd has been moving up, since the last few days as the company was sending some news to the exchanges. The Rs.2 face value scrip rose enough from my recommended price of around Rs.18, to Rs.62 in less than a year; after which it never closed above Rs.56. Today the stock closed at Rs.55.10 in the BSE. The investors were long suggested to book profits and exit the counter until the stock closed above Rs.57.

I will be recommending a (Super) Scrip next Monday, which is capable of giving you at least 15% returns in the short term (Enough to cover the cost of 1 year subscription on a seed capital of Rs.1.5 lakhs). If you are interested to know the name of the stock, then you should either, join my Premium Service or by trade through my associated brokerage house: BMA Wealth Creators Ltd, with a minimum portfolio size of Rs.1.5 lakhs.

SKM Egg Products Ltd today closed at Rs.97.30 in the NSE. The investors are suggested to book complete profits and exit the counter.

The money would continue to flow in the Indian bourses, due a virtually defunct real estate market and no so encouraging precious metals space. The tax component in new properties is one of the greatest impediment to the new home sales. Besides, in Mumbai, it is now possible to book a Rs.2 crore property by paying only few lakhs; as the builders try to hard to clear the old inventories. The property prices are likely to fall further.

Asian stocks finished on a mixed note amid uncertainty over the US tax bill. US stocks closed mostly lower yesterday, 27 November 2017 after touching intraday records as an early rally in retail shares largely fizzled. However, the blue-chip Dow bucked the weak trend to eke out a gain.

US President Donald Trump is scheduled to address Senate Republicans today, 28 November 2017 ahead of a potential vote on a tax overhaul. Federal Reserve Chair Janet Yellen testifies before the congressional Joint Economic Committee in Washington, and the confirmation hearing is due for her nominated successor, Jerome Powell.

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Market Pulse

Domestic stocks edged lower in early trade on negative Asian stocks. At present, the barometer index, the S&P BSE Sensex, is trading at 33,698.51, down 25.93 points (-0.08%) while the NSE is at 10,393.70, down 5.85 points (-0.06%).

Overseas, most Asian stocks were trading lower amid uncertainty over the US tax bill. US equities ended yesterday, 27 November 2017 little changed, as declining oil prices pulled down energy stocks.

US President Donald Trump is scheduled to address Senate Republicans today, 28 November 2017 ahead of a potential vote on a tax overhaul. Federal Reserve Chair Janet Yellen testifies before the congressional Joint Economic Committee in Washington, and the confirmation hearing is due for her nominated successor, Jerome Powell.

Jai Balaji Industries Ltd today hit another buyer freeze at Rs.15.05. I have been asking all to enter the scrip as its valuation looked pretty cheap compared to its peers. 

Intraday:
(i) SELL CRUDE in the range of Rs.3725-3730,  SL above Rs.3755, T: Rs.3690.
(ii) BUY COPPER  at around Rs.439.20, SL below Rs.437, T: Rs.442. Book PARTIAL PROFIT in COPPER - Keep trailing SL below cost price.

Videocon Industries Ltd hit another buyer freeze today -- any buoyancy in the crude oil price will bolster the stock of the company. 

Suzlon Energy Ltd after yesterday's hurricane move is today consolidating around the CMP of Rs.15. Suzlon Energy earlier informed the Udupi district administration that it will start dialogue with workers at its rotor blade manufacturing unit at the Padubidri Special Economic Zone (SEZ) in the district on November 30, 2017. The market cap of Suzlon Energy Ltd is only Rs.7,953.06 Cr as against the FY17 turnover of Rs.12,803.19 Cr.

Sell Reliance Industries Ltd's 960CE at around Rs.3.50-3.60, keep STOPLOSS at Rs.960 (spot price); Hold till EXPIRY.

BUY (T+3) GAIL at around Rs.461,  SL below Rs.450, T: Rs.481.

Gitanali Gems Ltd recommended around Rs.38.75 on 15 October, 2015 on this Free Blog, today touched Rs.104.40, giving more than 100% return in less than 3 - years. You can book some profits and hold the rest with a SL of Rs.91.

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

Winning Strokes

Key benchmark indices logged small gains on first trading day of the week after languishing in negative zone for most part of the trading session. The barometer index, the S&P BSE Sensex, rose 45.20 points or 0.13% to settle at 33,724.44. The Nifty 50 index rose 9.85 points or 0.09% to settle at 10,399.55. Stocks logged gains for eight day in row today, 27 November 2017. The Sensex and the Nifty, both, settled at their highest closing levels in three weeks.

Domestic stocks edged lower in early trade on negative Asian stocks. Stocks hovered in negative zone in morning trade. Key benchmark indices gyrated in a small range amid negative bias in mid-morning trade. Equities extended fall and hit fresh intraday low in early afternoon trade. Stocks hovered near the day's low in afternoon trade. Stocks cut losses in mid-afternoon trade. Indices turned positive in late trade.

The Sensex rose 45.20 points or 0.13% to settle at 33,724.44, its highest closing level since 6 November 2017. The index gained 65.93 points or 0.2% at the day's high of 33,745.17. The index fell 138.78 points or 0.41% at the day's low of 33,540.46.

The Nifty 50 index rose 9.85 points or 0.09% to settle at 10,399.55, its highest closing level since 6 November 2017 . The index gained 17.45 points or 0.17% at the day's high of 10,407.15. The index fell 49.50 points or 0.48% at the day's low of 10,340.20.

The S&P BSE Mid-Cap index rose 0.52%. The S&P BSE Small-Cap index rose 0.77%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,565 shares rose and 1,131 shares fell. A total of 184 shares were unchanged.

The IT major Infosys fell 1.23% to Rs 997.50. The company after market hours today, 27 November 2017, announced a partnership with Hewlett Packard Enterprise (HPE) to offer a joint end-to-end mainframe modernization solution, which will provide global enterprise customers robust hardware and advanced software architecture.

Most power generation stocks edged higher. Adani Power (up 3.25%), NTPC (up 3.13%), Reliance Infrastructure (up 3.07%), GMR Infrastructure (up 2.15%), Torrent Power (up 2.02%), Reliance Power (up 1.96%), CESC (up 0.79%) and NHPC (up 0.19%), edged higher. JSW Energy (down 0.18%) and Jaiprakash Power Ventures (down 1.12%), edged lower.

Tata Power rose 1.55% to Rs 95.25. Tata Power announced after market hours today, 27 November 2017, that its wholly-owned subsidiary, Tata Power Solar Systems, India's largest integrated solar company, commissioned a rooftop project in India - a solar carport on the rooftop of the sprawling 70,000 square meter Unity One mall, a Unity Group endeavor in Rohini. The unique rooftop carport is estimated to set off 438 Tons of carbon emission annually. Tata Power Solar won the bid in the open tender process fielded by Delhi Metro Rail Corporation (DMRC) for multi-level car parking. The project has been envisaged under net-metering scheme enabling self -reliance in the energy consumption and production cycle. It enables the mall to receive real value of the energy produced by earning on the unused and excess solar electricity produced. It also cuts down the need to install a second meter or an expensive battery storage system as it is directly connected to the local power grid.

The Sensex has risen 964 points or 2.94% in eight sessions from its close of 32,760.44 on 15 November 2017. The Sensex has risen 511.31 points or 1.54% in November so far (till 27 November 2017). The Sensex has risen 7,097.98 points or 26.66% in the calendar year 2017 so far (till 27 November 2017). From a 52-week low of 25,717.93 hit on 21 November 2016, the barometer index has risen 7,970.70 points or 30.95%. The index has fallen 141.51 points or 0.42% from its record high of 33,865.95 hit on 7 November 2017.

Meanwhile, global ratings agency Standard & Poor's Ratings Services affirmed its 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on the Republic of India. The outlook remains stable. The ratings on India reflect the country's sound external profile and improved monetary credibility. The announcement was made after market hours on Friday, 24 November 2017.

Asian stocks ended lower weighed by weakness in the Chinese and South Korean stocks. A drop in the Chinese industrial profits data also weighed down on the sentiment. China's industrial profits grew 25.1% in October compared to the year before, against a 27.7% rise seen in September.

The US investors are gearing up for a busy week, with President Trump scheduled to address Senate Republicans at their weekly luncheon Tuesday on taxes ahead of a potential vote on tax reform. Federal Reserve Chair Janet Yellen testifies before the congressional Joint Economic Committee in Washington, and the confirmation hearing for her nominated successor, Jerome Powell, begins.

On the data front, a survey of purchasing managers showed that businesses grew in November at the slowest pace in four months. The Markit flash manufacturing PMI fell to 53.8 from 54.6, while the flash services PMI fell to 54.3 from 54.6. A reading of 50 or better indicates improving conditions.

Today Jai Balaji Industries Ltd hit the upper circuit at  Rs.14.35. With the steel cycle turnaround in the offing and the government is coming out with sops for the scrap importers, most of the 2nd rung steel counters are expected to do well in the coming days. The scrip could make a new 52--week high in the days ahead.

A buy on COPPER suggested at around Rs.445.20, SL below Rs.442.50,for an intraday  Target of Rs.449.00. Copper touched Rs.551.700 today.

Join my Premium Service or trade through my associated brokerage house with a minimum portfolio size of Rs.1 lakhs, to receive next Super Call; which alone is likely to cover the cost of the subscription. 

Suzlon Energy Ltd (Rs.15) which was recommended to the clients of my associated brokerage house: BMA Wealth Creators Ltd, at around Rs.13.50-14 closed near the day's high of Rs.15.10. If the crude oil prices continue to boil in the international markets, then the stock of Suzlon Energy Ltd could make a new 52-week high in the coming days. 

The consumer electronics major Videocon Industries Ltd hit another buyer freeze at Rs.13.40 in the NSE. The company has  two large oil blocks on the verge of production in Indonesia and Brazil - the Indonesian block is likely to start production late next year or in early 2019 and the Brazilian field is expected to produce its first oil in 2020. Videocon Industries had consolidated outstanding debts of Rs 44,000 crore evenly divided between its domestic and overseas businesses, Dhoot said.  The company reported a consolidated gross debt of Rs 47,500 crore at the end of December 2015, the latest year for which the company’s audited financials are available. The risk taking investors should therefore accumulate the scrip in every decline, keeping a SL at Rs.11. 

Gitanjali Gems Ltd (Rs.93.15) which was recommended around Rs.66-67, recently, made a high of Rs.100 in the NSE today. It is pertinent to mention here that the scrip of Gitanjali Gems Ltd was recommended around Rs.38.75 on 15 October, 2015 on this blog.

~~ with inputs from Capital Market - Live News.

Today's Calls

1.  Buy M&M Finance Ltd at around Rs.444-445, SL: Rs.435, T: Rs.461 on T+2 basis.

2. Intraday sell Canara Bank at around Rs.387, SL: Rs.392.50, T: Rs.379-376.
3. Intraday sell Hexaware at around Rs.326, SL: Rs.328.50, T: Rs.321-319.
4. Intraday buy COPPER at around Rs.445.20, SL  above Rs.442.50, T: Rs.449.00.

Pre-Session: Market may see gap-down opening on negative global cues

27-Nov-17: Domestic stocks may take breather after logging gains for seven days in a row to Friday, 24 November 2017. The Sensex had jumped 918.80 points or 2.8% in seven sessions, from a close of 32,760.44 on 15 November 2017. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 32 points at the opening bell.

Overseas, Asian stocks gave back earlier modest gains and fell back from a decade high on Monday, weighed by weakness in the Chinese and South Korean markets.

In US, the S&P 500 and Nasdaq Composite finished at all-time highs on Friday, 24 November 2017 as retailers were in focus amid the Black Friday shopping holiday, a day after domestic markets were closed in observance of Thanksgiving.

On the data front, a survey of purchasing managers showed that businesses grew in November at the slowest pace in four months. The Markit flash manufacturing PMI fell to 53.8 from 54.6, while the flash services PMI fell to 54.3 from 54.6. A reading of 50 or better indicates improving conditions.

Back home, key benchmark indices settled with modest gains on Friday, 24 November 2017 as Government promulgating the ordinance to amend the Insolvency and Bankruptcy Code, 2016 perked up sentiment. The Sensex advanced 91.16 points or 0.27% to settle at 33,679.24, its highest closing level since 6 November 2017.

The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 416.28 crore on Friday, 24 November 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 427.63 crore on Friday, 24 November 2017, as per provisional data.

Among stocks, shares of Sun Pharmaceutical Industries (Sun Pharma) may be in action after the company said it is recalling two lots of Riomet (Metformin Hydrochloride Oral Solution), 500 mg/5ml, to the retail level (Class II Recall). This product is manufactured for SPII by a contract manufacturer. The Riomet has been found to be contaminated. The contamination was discovered during sample preparation for the Antimicrobial Preservative Effectiveness Testing (AMPET) being performed as part of the 12 month stability study interval. The announcement was made after market hours on Friday, 24 November 2017.

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Opportunity for Investors

Photo: Audacity Capital

There is an opportunity for those investors, who want to get a fixed monthly on their investments, away from the hustle and bustle of share market. The schemes, which are from a more than 30 year old company, are as follows:

(i) Invest Rs.5 lakhs and get Rs.49,000 per month for the next 12 months, through EMIs. That is you get Rs.(12*49,000) = Rs.5,88,000 in total, on your investment of Rs.5 lakhs; in 12 months.

(ii) Invest Rs.5 lakhs and get Rs.10,000 per month as Interest (2% per month or 24% in a year) on your investment, for the next 12 months. You will get 12 PDCs of 1 year & Promissory Note  on your investment of Rs.5 lakhs. In this case you are getting Rs.(5+1.2) lakhs = Rs.6.2 lakhs in 12 months.

This offer is initially available only for the first 200 individuals and is open till 31st December, 2017.

For more on this, please contact  me at: 

#suman2005s@rediffmail.com or 

#sumanm2007s@gmail.com on behalf of:

Mr.J Dcrus

Financial Consultant,

New Delhi, India.

Winning Strokes

Benchmark indices settled with modest gains as Government promulgating the ordinance to amend the Insolvency and Bankruptcy Code, 2016 perked up sentiment. The barometer index, the S&P BSE Sensex, advanced 91.16 points or 0.27% to settle at 33,679.24. The Nifty 50 index rose 40.95 points or 0.4% to settle at 10,389.70. Gains in global stocks also underpinned sentiment. The Sensex and the Nifty, both, hit highest closing level in 2-1/2 weeks. IT and power stocks gained.

The market gained for the seventh straight day. The Sensex jumped 918.80 points or 2.8% in seven sessions, from a close of 32,760.44 on 15 November 2017.

The market opened higher and held firm in the positive terrain throughout the session.

The Sensex advanced 91.16 points or 0.27% to settle at 33,679.24, its highest closing level since 6 November 2017. The index gained 150.45 points, or 0.45%, at the day's high of 33,738.53. The index rose 51.90 points, or 0.15%, at the day's low of 33,639.98.

The Nifty 50 index rose 40.95 points or 0.4% to settle at 10,389.70, its highest closing level since 6 November 2017. The index gained 55.75 points, or 0.53%, at the day's high of 10,404.50. The index rose 13.50 points, or 0.13%, at the day's low of 10,362.25.

The S&P BSE Mid-Cap index rose 0.58%. The S&P BSE Small-Cap index advanced 0.45%. Both these indices outperformed the Sensex.

The breadth indicating the health of the market, was positive. On BSE, 1,551 shares rose and 1,225 shares declined. A total of 159 shares were unchanged.

The total turnover on BSE amounted to Rs 4485.71 crore, slightly higher than turnover of Rs 4422.42 crore registered during the previous trading session.

On the macro front, the Government of India promulgated yesterday, 23 November 2017, the ordinance to amend the Insolvency and Bankruptcy Code, 2016. Earlier, the President of India had given his assent to the ordinance to amend the code.

The ordinance aims at putting in place safeguards to prevent unscrupulous, undesirable persons from misusing or vitiating the provisions of the code. The amendments aim to keep-out such persons who have wilfully defaulted, are associated with non-performing assets, or are habitually non-compliant and, therefore, are likely to be a risk to successful resolution of insolvency of a company.

In addition to putting in place restrictions for such persons to participate in the resolution or liquidation process, the amendment also provides such check by specifying that the committee of creditors ensure the viability and feasibility of the resolution plan before approving it. The Insolvency and Bankruptcy Board of India (IBBI) has also been given additional powers.

Meanwhile, the Cabinet Committee on Parliamentary Affairs today, 24 November 2017, recommended that the winter session of Parliament be held from 15 December 2017 to 5 January 2018. The ensuing winter session will have a total of 14 sittings over a duration of 22 days. Three bills are to be taken up in the coming winter session to replace three ordinances namely, the Goods & Services Tax (Compensation to States) Ordinance, 2017 (promulgated on 2 September 17); Insolvency & Bankruptcy Code (Amendment) Ordinance, 2017 and Indian Forest (Amendment) Ordinance, 2017.

Overseas, European stocks edged higher in sluggish post-Thanksgiving trading. Asian stocks gained after volatile trade. Japanese manufacturing activity expanded at the fastest pace in more than three years in November, a preliminary survey showed. The Markit/Nikkei Japan Manufacturing flash Purchasing Managers Index (PMI) rose to 53.8 in November on a seasonally adjusted basis from a final reading of 52.8 in October.

For complete guidance on stock market, you can either join my Premium Service or you can trade through my recommended brokerage house: BMA Wealth Creators Ltd, with a minimum portfolio size of Rs.1 lakh.

A2Z Infrastructure Ltd recommended yesterday reached its 2nd  target of Rs.42, as it made an intraday high of Rs.43.70. Those who are still holding some quantity of the shares, are requested to hold the same, with a SL at Rs.41.

Suzlon Energy Ltd recommended around Rs.13.50-14, today gave a break out on daily charts and is heading towards Rs.17-17.50 mark in the coming days. The company's fundamentals have improved a bit and a spike of crude oil prices is likely to give a forward kick to the shares of Energy Companies. Accumulate the scrip on intraday declines.

Jai Balaji Industries Ltd (Rs.13.80) today closed with slight gain in the NSE as the Steel Minister Chaudhary Birender Singh, assured of all possible support to secondary steel sector, which uses eco-friendly electric furnace to produce the commodity. Regarding, shortage of scrap which is required for making steel through electric furnace route and Duty on import of the commodity, Mr.Singh said that his ministry will take steps to address all issues of the sector which has the potential to create employment for 3 crore people.
Being an Integrated Steel Plant Jai Balaji Industries Ltd has both Blast Furnace and Electric Arc Furnace facilities. Moreover, as an integrated steel manufacturer its operations are sufficiently flexible to enable it to alter its product mix and position in order to minimize adverse effects in its business; in the highly cyclical steel industry. Besides, the government is also pushing investment through sectors like housing and railways, which will help boost demand for steel. 

This week, the NDA government through an amendment to the Insolvency and Bankruptcy Code, essentially barred a majority of the defaulting promoters from buying back their assets. However, if promoters can regularise the account by paying the overdue amount before the resolution process begins, they may be able participate in the bidding process. The steel assets are being bid out at a time when the steel price cycle has turned. While economic growth isn’t at its peak, it is expected to pick up from here.If at this stage in the cycle, a steel asset comes up for bidding, investors will probably not look away. Indeed that appears to be the case. As BloombergQuint has reported, both international and domestic steel firms have expressed interest in the steel assets that are being resolved through insolvency. 

Meanwhile, belying the earlier apprehension, the alloy and SS industry has started looking up. A part of it may be due to a mid-year revision of the availability figures in the official statistics that has made the finished steel availability in this segment to grow by 15.5% in October 2017 itself and by 14.5% during the first 7 months of the current fiscal. As a result, the apparent steel consumption in the country is maintaining its average growth rate of 4.5% in April-October period. Whatever may be the explanation, it looks pretty odd that during the last month, while consumption of non-alloy steel grew by 3.7% only, the alloy and SS consumption went up by a hefty 22.1%.
Raw materials consumed by the Jai Balaji Group includes: coking coal, non-coking coal, iron ore, scrap metal, manganese ore, high manganese slag, quartzite and dolomite among others. Steel Secretary Aruna Sharma recently informed the members of the industry that the duty on nickel has already been removed and the ministry has requested the Revenue Department to remove the duty on ferro-nickel and stainless steel scrap.

The shares of Reliance Communications Ltd today tanked to Rs.13.55, after a sell on rise call was suggested in this blog yesterday. 

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Market Pulse

Today the S&P BSE Mid-Cap index rose 0.33%. The S&P BSE Small-Cap index advanced 0.37%. Both these indices outperformed the Sensex. The Sensex is now trading at  33,689.44 up 101.36  points (+0.30%) and Nifty is now at 10,387.20 up 38.45 points (+0.37%).

The breadth, indicating the overall health of the market, was strong, till writing this report. On BSE, 976 shares rose and 448 shares declined. A total of 50 shares were unchanged.

Reliance Industries gained 0.89% after Reliance Marcellus II, LLC, a subsidiary of Reliance Holding USA, Inc., and Reliance Industries announced the closing of recently announced sale of its interest in certain upstream assets; which were operated by Carrizo Oil & Gas, Inc to BKV Chelsea LLC, an affiliate of Kalnin Ventures.

On the macro front, the Government of India promulgated yesterday, 23 November 2017, the ordinance to amend the Insolvency and Bankruptcy Code, 2016 (the Code). Earlier the President of India had given his assent to the ordinance to amend the code.

The ordinance aims at putting in place safeguards to prevent unscrupulous, undesirable persons from misusing or vitiating the provisions of the code. The amendments aim to keep-out such persons who have wilfully defaulted, are associated with non-performing assets, or are habitually non-compliant and, therefore, are likely to be a risk to successful resolution of insolvency of a company.

In addition to putting in place restrictions for such persons to participate in the resolution or liquidation process, the amendment also provides such check by specifying that the committee of creditors ensure the viability and feasibility of the resolution plan before approving it. The Insolvency and Bankruptcy Board of India (IBBI) has also been given additional powers.

Overseas, Asian stocks were mixed while investors viewed Chinese shares with caution after their big fall the previous day. Japanese manufacturing activity expanded at the fastest pace in more than three years in November, a preliminary survey showed. The Markit/Nikkei Japan Manufacturing flash Purchasing Managers Index (PMI) rose to 53.8 in November on a seasonally adjusted basis from a final reading of 52.8 in October.

US stock markets remained closed yesterday, 23 November 2017 on account of Thanksgiving holiday.

#The 1st target of A2Z Infrastructure Ltd has been reached as the stock touched Rs.41.40, intraday. Those who have not booked intra-day profit yesterday, are suggested to book some profit and keep holding the rest with a SL of Rs.37, for the next target of Rs.42.

#Shilpi Cable Technologies Ltd recommended some days back around Rs..14.45, is up ~2% today and is now trading at around Rs.15. The investors are suggested to accumulate the scrip on all declines.

#BF Utility Ltd (Rs.521.40) which was recommended around Rs.129--130, fell from around Rs.149 yesterday, after profit booking was suggested in the counter. The investors are suggested to hold the stock with a SL of Rs.111.

#TVS Motors (CMP: Rs.740) was recommended to buy on declines at around Rs.731-732 with a target of Rs.746-752. It reached Rs.730.50 intra-day, after recommendation. Hope you have entered the scrip. Yesterday Full Intraday profit at Rs.737.40 was suggested. The stock touched an intraday high of Rs.743.95 today, which is very near the short term target of Rs.746. The investors can hold the scrip with appropriate stop losses, if they are not willing to book profit at the current market price; however raise the SL to Rs.737 today.

For complete guidance on stock market, you can either join my Premium Service or you can trade through my recommended brokerage house: BMA Wealth Creators Ltd, with a minimum portfolio size of Rs.1 lakh.

Today's Calls:

1. Buy Suzlon Energy Ltd at around Rs.13.90 - 14, for targets of Rs.17-17.5, in the short term. U.S. crude hit a two-year high in thin trade on Thursday as the shutdown of a major crude pipeline from Canada and a draw on fuel inventories pointed to a tightening market, despite rising output from U.S. producers. This is likely to give an upward kick to all the energy stocks in the near term.
Suzlon Energy, promoted by Tulsi Tanti, is a fully integrated wind power solutions provider. It provides services such as wind resource mapping, land and infrastructure development, creation of power evacuation facilities, component manufacturing, and wind turbine installation in both domestic and international markets.

Suzlon Energy also undertakes the manufacturing and machining of large forging and casting products through its various subsidiaries.

Suzlon Energy entered a corporate debt restructuring (CDR) exercise in 2013 after defaulting on foreign currency convertible debt (FCCB) repayments in 2012 as overall debt peaked close to Rs12,000 crore. The firm had debt of Rs6,198 crore in FY17.

The company has since then tried to cut debt by monetizing assets. In 2015, Suzlon sold its German subsidiary REpower Systems (now known as Senvion) to US private equity firm Centrebridge for Euro 1 billion (about Rs7,000 crore). The sale was followed by an investment of Rs1,800 crore in Suzlon Energy by Sun Pharmaceutical Industries Ltd chairman Dilip Shanghvi and his family for a 23% stake. According to recent report by credit rating agency Care Ratings, the financial position of Suzlon Energy has improved.

2.  Intraday SELL NIIT Tech at around Rs.662, SL: Rs.668,  T: Rs.655-650.

3. Buy (T+2) Hindustan Petroleum Corporation Ltd at around Rs.429, SL: Rs.418, T: Rs.445.

4. Intraday SHORT NICKEL at around Rs.777, SL above Rs.787, T: Rs.765.

~~ with inputs from Capital Market - Live News

Market Pulse

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

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

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

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

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

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

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

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

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

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

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

Today's Calls:

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

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

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

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

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

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

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

-- with inputs from Capital Market - Live News

Market Pulse

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

Today's Calls:

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

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

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

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

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

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

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

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

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

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

Pre-Session: Indices may advance on firm Asian cues

22-Nov-17: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 30.85 points at the opening bell on firm Asian stocks.

Overseas, Asian stocks gained on record close for US stocks overnight. US stock-market indexes ended at records and near session highs yesterday, 21 November 2017, finding support on another round of strong earnings, with technology shares leading the way. The Chicago Fed national activity index rose to 0.65 in October from 0.36 in September. Sales of previously-owned homes jumped to a seasonally adjusted annual pace of 5.48 million in October.

Among corporate news back home, Bank of Baroda announced that the finance committee of the board approved the proposal of raising additional equity capital aggregating upto Rs 6000 crore by way of rights issue or qualified institutions placements (QIP), subject to applicable statutory/regulatory approvals. The announcement was made after market hours yesterday, 21 November 2017.

Key benchmark indices settled with modest gains yesterday, 21 November 2017, as firmness in global stocks underpinned sentiment. The Sensex advanced 118.45 points or 0.36% to settle at 33,478.35, its highest closing level since 6 November 2017. Stocks had gained for the fourth straight day.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 727.01 crore yesterday, 21 November 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 825.50 crore yesterday, 21 November 2017, as per provisional data.

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Opportunity for Investors

Photo: Audacity Capital

There is an opportunity for those investors, who want to get a fixed monthly on their investments, away from the hustle and bustle of share market. The schemes, which are from a more than 30 year old company, are as follows:

(i) Invest Rs.5 lakhs and get Rs.49,000 per month for the next 12 months, through EMIs. That is you get Rs.(12*49,000) = Rs.5,88,000 in total, on your investment of Rs.5 lakhs; in 12 months.

(ii) Invest Rs.5 lakhs and get Rs.10,000 per month as Interest (2% per month or 24% in a year) on your investment, for the next 12 months. You will get 12 PDCs of 1 year & Promissory Note  on your investment of Rs.5 lakhs. In this case you are getting Rs.(5+1.2) lakhs = Rs.6.2 lakhs in 12 months.

This offer is initially available only for the first 200 individuals and is open till 31st December, 2017.

For more on this, please contact  me at: 

#suman2005s@rediffmail.com or 

#sumanm2007s@gmail.com on behalf of:

Mr.J Dcrus

Financial Consultant,

New Delhi, India.

Jai Balaji Industries: Some Illuminating Facts

According to the Annual Report of FY17

Jai Balaji Group presently generates Power for captive use in three locations, viz Raniganj and Durgapur in West Bengal and Durg in Chhattisgarh, with an installed Power generation capacity of 101.10 MW. It produced 319.69  MU in FY17.

According to the annul report of FY17 , the Company has three wholly owned subsidiaries namely Nilachal Iron & Power Limited, Jai Balaji Steels (Purulia) Limited & Jai Balaji Energy (Purulia) Limited.

Regarding Join Ventures, Jai Balaji Industries Ltd (Rs.13.90) writes in its 2016-17, Annual Report: 

Your Company continues to have two joint venture (JV) companies namely, Andal East Coal Company Private Limited and Rohne Coal Company Private Limited.

#Andal East Coal Company Private Limited:

‘Andal East Coal Company Private Limited’ was formed in 2009-10, in which your Company along with Bhushan Steel Limited and Rashmi Cement Limited are venture partners. The said Joint Venture Company was formed in terms of allocation of Andal Non-Coking Coal Block in the State of West Bengal by Ministry of Coal, Government of India.

#Rohne Coal Company Private Limited:

‘Rohne Coal Company Private Limited’ was formed in 2008-09, in which your Company along with

JSW Steel Limited & Bhushan Power & Steel Limited are venture partners. The said Joint Venture Company was formed in terms of allocation of Rohne-Coking Coal Block in the State of Jharkhand by Ministry of Coal, Government of India.

None of the Companies have become or ceased to be the Subsidiaries, Joint Ventures and Associate Company during the year under review.

Now, at the CMP of Rs.13.90, the MARKET CAP of the Jai Balaji Industries Ld is only around Rs.133.01 Cr, against June 2017 quarter revenue of Rs.538.65 Cr and FY17 revenue of Rs.1,584.70 Cr. 

The cost of making a 1 MT capacity steel plant is around Rs.5500 - 6000 crore. This is a ready made steel plant, available for buyers, away from the initial hassles of all forms (Red - tapeism like licence, environmental clearances, etc).

I reiterate, at the CMP of Rs.13.90, Face Value of Rs.10 and with a debt of around Rs.2768 Cr, the market cap of the company stands at only Rs.133.01 Cr,  

In comparison to this Bhushan Steel’s (which was recently recommended as a buy in front of TV cameras, by a Bombay based operator) total debt stood at around Rs.42,355 crore as of 31 March. At the CMP of Rs.70.25, Bhusan Steel Ltd, has a Market Cap of Rs.1,593.53 Cr and Face Value Rs.2; which means at Rs.10, FV, its share price is Rs.351.

Moreover, the lagging indicators like EMAs more or less  confirm the uptrend in the stock of Jai Balaji Industries Ltd. The share of Jai Balaji  Industries Ltd, one of the largest steel producers in Eastern India, managed to close above its 21D, 50D, and 100D EMAs.  MACD and short term oscillators are also in BUY mode. 

Conclusion: When the Sensex is at 33,478.35 and the future prospects of the Indian Steel sector looks bright (especially with "Make in India" campaign), I don't think there is much risk associated in buying the shares of Jai Balaji Industries Ltd at Rs.13.90; for short term targets of around Rs.21-22 and medium term targets of around Rs.29-31.

Market Pulse

1. Bank NIFTY FUTURES recommended yesterday to  BUY around 25830: Book Profit at 25926. 

2. Golden Cross is in the offing in the shares of Jai Balaji Industries Ltd (Rs.13.65) - next target is Rs.17. Rise in input costs and an improvement in demand, especially from segments like housing, railways and automobiles, led to the firming up of steel prices in the past few months. Moody's Investor Services expects China's steel production capacity to continue to decline. Environmental protection measures in China have forced the closure of inefficient mills and prompted consolidation in the industry, leading to a decline in Chinese exports. This has supported regional steel prices which have firmed up subsequently.
In another significant development, earlier this month, Business Standard reported that JSW Steel was in discussion with Piramal Enterprises for a partnership that could result in a joint bidding for assets currently going through the insolvency process. According to the contours of the arrangement, Piramal Enterprises would provide the funding and JSW Steel the management to the assets once they come up for bidding, the report added. Assets that JSW Steel is jointly evaluating with investors includes Bhushan Steel Ltd, which is currently under bankruptcy proceedings.
The National Steel Policy 2017 aims to increase domestic production of steel to 300 million tonnes by 2030. Given the thrust on increasing domestic steel production and estimates of a rise in demand, National Company Law Tribunal (NCLT)-listed firms are attractive purchases at this juncture where setting up greenfield capacities could mean unending approvals. The NCLT has begun processing cases involving other steel companies like Bhushan Steel and Electrosteel Steels. The three steel companies have a total installed capacity of 18.11 million tonnes. With a debt of around Rs.2,678 crore, Jai Balaji Industries Ltd, is also a potential takeover candidate. Meanwhile, the Ministry of Steel has urged Indian Railways not to violate the "Make in India" policy that requires all infrastructure projects worth more than Rs.500 million to use locally-made steel.

3. Intraday SELL Tata Elxsi Ltd at around Rs.940, SL: Rs.947,  T: Rs.929. Book PART PROFIT around Rs.933.50.

4.  NIFTY Futures recommended yesterday at around 10310: Gradually Book PROFIT at 10360.

5.  SELL Ambuja Cement Futures at around Rs.267, SL above Rs.270, T: Rs.262..

6. The derivative contracts (FUTURE & OPTION..BOTH) for DHFL, DLF, HDIL, ICIL, INFIBEAM, JETAIRWAYS, JPASSOCIAT, JSWENERGY, KSCL, RCOM, RELCAPITAL, JUSTDIAL, TV18BRDCST, have crossed 95% of the market-wide position limit and are currently in the ban period.

7. SKM Egg Products Ltd book profit at around Rs.115 (Intraday high Rs.115.90). The stock which was recommended yesterday at around Rs.77-78, has given around 35% return in just two days, as egg prices sky rocketed in the Indian markets.

8. Buy Titan at around Rs.803-404, SL: Rs.790, T: Rs.823 on T+2 basis.

9. Bajaj Auto Futures recommended yesterday at around Rs.3255-3260: Traders may exit with minor profit at Rs.3267.

10. Gitanjali Gems Ltd recommended at around Rs.67, today made an intraday high of Rs.76.30 and is near the 2nd target of Rs.77. The traders can book some profits and hold the rest with a SL of Rs.72.
2nd target achieved in Gitanjali Gems Ltd as the stock made an intra-day high of Rs.77.40.

11.  Buy Wockhardt Pharma at around Rs.742, SL: Rs.725, T: Rs. 765-774 on  T+2 basis. 

Pre-Session: Market may extend recent gains on firm Asia

21-Nov-17:  Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 29 points at the opening bell on firm Asian stocks.

Overseas, Asian stocks gained as investors took heart from further evidence of strength in the global economy. US stock market closed higher yesterday, 20 November 2017, as investors continued to focus on corporate earnings and prospects for tax cuts. The leading economic index surged 1.2% in October and suggested no letup in a steadily growing US economy with the end of the year fast approaching.

Back home, key benchmark indices settled with tiny gains after a range-bound and lackluster session of trade yesterday, 20 November 2017, amid mostly lower global stocks. The Sensex rose 17.10 points or 0.05% to settle at 33,359.90, its highest closing level since 6 November 2017. Indices extended gains for third straight day.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 358.74 crore yesterday, 20 November 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 613 crore yesterday, 20 November 2017, as per provisional data.

Among corporate news, shares of NBCC (India) and Simplex Infrastructures will be in focus. NBCC (India) said it has awarded the contract for construction of various buildings for IIT Bhubaneswar at Bhubaneswar and its extended campus to Simplex Infrastructures, Kolkata for about Rs 524.12 crore with completion period of 15 months. NBCC will get project management consultancy fee on the same. The announcement was made after market hours yesterday, 20 November 2017.

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Today's Calls

1. Buy Nifty Futures on declines around 10290, SL: 10255,  T: 10332.....Book PARTIAL PROFIT around 10320. Book PARTIAL PROFIT around 10333. Target Achieved!!  

2. Intraday SELL Ambuja Cement at around Rs.268-268.50, SL: Rs.272, T: Rs.265-264. Book PARTIAL PROFIT at around Rs.265.80. 2nd target almost achieved at Rs.264.

3. Buy SKM Egg Products Ltd at around Rs.77--78, for short term target of Rs.87-91. Started in 1995 in collaboration with Belovo- Belgium, SKM produces Whole Egg powder, Egg Yolk powder, Egg Albumen (Egg White) powder and liquid eggs. Its customers are mainly Bakeries and FCMG companies. SKM combined the technical know-how obtained from Belovo with its own three decade long experience in the poultry industry to build the SKM brand. SKM products are exported to Europe, Japan, Middle East, Russia, Africa and Southeast Asia. SKM has sales offices in Netherlands, Japan and Russia. 

Only 3 (three) players exist in India, who are into this business with high entry barrier ie; SKM, Venky’s and Ovobel. The stock has hit the 20% upper circuits at Rs.97.80 in the NSE.

4. Moody's Investors Service has withdrawn debt-laden Reliance Communications Ltd's corporate family rating, citing a missed scheduled payment related to the company s dollar bond. "Moody's has today withdrawn Reliance Communications' (RCom) Ca corporate family rating (CFR) and its negative outlook. At the same time, Moody's has also withdrawn the Ca rating on RCom's senior secured notes," a Moody's statement said. I have asking all to stay away from this scrip since Rs.17-21. I feel after this downgrade the scrip of RCom Ltd (Rs.11.65) can go below Rs.9; unless some companies come and takes stake in it.

5. Net Loss of Mandhana Industries came as Rs.118.90 crore in the quarter ended September 2017 as against net loss of Rs.193.93 crore during the previous quarter ended September 2016. Long term investors can buy the shares of the company at around Rs.7.45, for targets of Rs.11-14.

6. Shilpi Cable Technologies Ltd could hit the upper circuits today. Today morning, it came out of the Upper Circuits and is now trading around Rs.15.45. Don't sell in a hurry.

7. Medium term investors can buy the shares of Jai Balaji Industries Ltd at around Rs.13.30, for targets of Rs.21-22. The company is making lot of efforts to come out of the debt. Meanwhile, the steel ministry has notified that preference will be given to locally made steel for procurement by the government and public sector undertakings. Rise in input costs and an improvement in demand, especially from segments like housing, railways and automobiles, led to the firming up of steel prices in the past few months. Moody's Investor Servies expects China's steel production capacity to continue to decline. Environmental protection measures in China have forced the closure of inefficient mills and prompted consolidation in the industry, leading to a decline in Chinese exports. This has supported regional steel prices which have firmed up subsequently.

8. Aggressive Traders can BUY Bajaj  Auto- FUT at around Rs.3255-3260, SL: Rs.3230, T: Rs.3292.

9. Intraday BUY ZINC around Rs.207,  SL below Rs.206.30,  T: Rs.208.  Book PROFIT in ZINC at CMP 207.75.

10. Intraday BUY NATURAL GAS at around Rs.198, SL below Rs.196, T: Rs.201.50.

11. Buy Bank Nifty  FUTURES on declines at around 25830, SL below 25760, T: 25950.

Indices may edge lower on weak Asia

20-Nov-17: Key indices may edge lower in early trade tracking weakness in Asian stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 7.50 points at the opening bell.

Overseas, most Asian stocks declined pressured by a retreat on Wall Street on Friday, 17 November 2017, amid tax reform uncertainty. Japan's export growth held steady in October. Ministry of Finance (MOF) data showed that exports rose 14% year-on-year in October.

US stocks finished the week on Friday, 17 November 2017 on a subdued note, as worries over US tax reform and a delay of the promises cut in corporate taxation, weighed on investors' minds.The US House of Representatives passed their version of a tax overhaul bill that would cut corporate taxes last week, but the Senate continued to wrangle over its rival tax bill, with investors uncertain about whether Congress will be able to reach a compromise.

Among corporate news back home, engineering and construction major Larsen & Toubro (L&T) will be watched after winning an order. The heavy civil infrastructure business vertical of L&T Construction bagged a major order worth Rs 8650 crore from Mumbai Metropolitan Region Development Authority (MMRDA) for the construction of Mumbai Trans Harbour Link (MTHL), packages 01 and 03. The project involves construction of a 21.80 Km bridge connecting Mumbai mainland with Navi Mumbai. The project has been bagged against stiff competition from renowned international and domestic companies. The announcement was made on Saturday, 18 November 2017.

IndusInd Bank and Yes Bank will be included in the S&P BSE Sensex, while Cipla and Lupin will be excluded from the benchmark index. The changes are effective at the open of Monday, 18 December 2017.

IT major Infosys said its Rs 13000 crore buyback offer will open on 30 November 2017 and end on 14 December 2017. The offer will see the company buying back over 11.30 crore shares at Rs 1150 each. The announcement was made after market hours on Friday, 17 November 2017.

IT major Wipro said its Rs 11000 crore buyback offer will open on 29 November 2017 and end on 13 December 2017. The offer will see the company buying back over 34.37 crore shares at Rs 320 each. The announcement was made after market hours on Friday, 17 November 2017.

Meanwhile, the stock market registered modest gains, extending previous session's gains on Friday, 17 November 2017, after rating agency Moody's Investors Service upgraded sovereign rating of India a notch above investment grade after a long gap of 14 years. The Sensex advanced 235.98 points or 0.71% to settle at 33,342.80, its highest closing level since 7 November 2017.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 1276.62 crore on Friday, 17 November 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) also bought shares worth a net Rs 1466.94 crore on Friday, 17 November 2017, as per provisional data.

Oil rebounded more than 2% on Friday after falling for five straight session as a major US crude pipeline was shut and traders anticipated an OPEC deal to extend curbs on production.

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