Urja Global  Ltd: A case of Unbridled Stock Manipulation or too much Euphoria.....?

Photo: BCG Attorney Search

The stock of Urja Global Ltd (Rs.9.72 on Re.1 Face Value and Rs.97.2 on Rs.10 face value) has been hitting the upper circuits since sometime. This Re.1 face value stock has been hitting the buyer freezes since some videos surfaced in the YouTube, claiming its growth story in the solar power sector, when majority of its established peers are not doing that well.

On reviewing its financials and other crucial parameters, what I find is:

#The net profit for Q2FY18 is only Rs.41 lakhs against a revenue of Rs.28.92 crore, giving an EPS of Re.0.01 or only 1 paise on its Re.1 face value share. 

#The depreciation shown is Re.1 lakh which does not make any sense, considering its product pipeline and its solar power business. 

#Interestingly its NPMs and OPMs are almost same. It has OPM at 1.45% while NPM at 1.43%, which looks quite bizarre. 

#If we look at its FY17 results, we find that it has a total income of Rs.118.15 crore, while its net profit is only Rs.1.03 core, which is less than even 1% of its turnover. This leaves many unanswered questions about its business model.

#In early November, 2017, the company announced the signing of Memorandum. Urja Batteries Limited, a subsidiary of Urja Global Limited, signed the Memorandum of Understanding (MOU) with Micromax Energy Limited. As per the MOU, the company will manufacture and supply batteries on OEM basis to Micromax. But singing of such documents does not mean much unless actual ground work begins. At that time scrip price was ruling around Rs.2.23, against the CMP of Rs.9.72 or more than 4 times. Or in other words the scrip price has become around 4 times in just 3-4  months.

#Urja Batteries, a part of Urja global, is a leading battery manufacturer in India that specializes in lead acid battery for Industrial, Solar, and Standby power solutions. However, there are huge number of me too lead acetate battery manufacturers in India, leaving it in the face of immense competition which is already seen in its very low margin business. 

#The Live Mint wrote today: India’s quest for low clean energy tariffs “possibly contributed” to the demands for renegotiation of the already signed power purchase agreements (PPAs), the Economic Survey said on Monday.

This in turn may result in legal battles and bring uncertainty for the sector, with the banks becoming wary to lend to such projects, the Survey cautioned.

This comes in the backdrop of India’s wind power tariffs plummeting to Rs.2.43 per kilowatt-hour (kWh) at an auction conducted by state-run Gujarat Urja Vikas Nigam Ltd last month, beating the record low solar tariff of Rs.2.44 per unit registered in May.

While solar power tariffs rose to Rs.2.65 per kWh at an auction conducted by the Gujarat government in September, last month’s auctions conducted by state-run Solar Energy Corp. of India threw up winning bids of Rs.2.47 and Rs.2.48 per unit.  

If this is the condition of renewable energy sector, then what is the growth story people are talking about in this space?

#It has a market cap of Rs.493 crore against its FY17 turnover of Rs.118.15, showing that the share price is already highly over valued, at the current set of financials. And, hence its future price as against its fundamentals and its highly touted growth story remains skeptical. 

#Its promoter holding is 33.52%, which means they do not have full control over management decisions. 

#Its book value according to Moneycontrol.com is Rs.3.23 against the CMP of Rs.9.72. Or  it is trading at around 3 x Book Value. However, the ET gives its book value at Rs.30.45.

Moreover, its P/E is at whooping 447.5 against the industry P/E of 38.98. Even if we discount, the extraneous factors, its PE of 447.5 does not give much justification of a buy at the CMP.

Besides, a renewable energy share with ordinary product portfolio is trading at Rs.97.20 (of Rs.10 book value) -- doesn't that look strange? However, the stock markets all over the world is guided more by sentimental play rather than fundamentals in the short term. Or according to my analysis, Mr.Market is never perfect in the short term and is guided by the cycles of too much euphoria and pessimism.....

The above factors, gives some signs of stock manipulation by the vested groups. I hope the regulators will swing into action and take pains to find out the unnamed entities behind making such videos in YouTube; before the horse actually bolts the door.  

The point is if money finds place in such highly overvalued scrips, then from where the money will flow in real turnaround stories like 3i Infotech Ltd (Rs.6.40) or Hindustan Zinc Ltd (Rs.310.75)?

Note: I am having severe teeth problems with excruciating pain in the Jaws. I am likely to be operated tomorrow -- if the situation turns more teething then by today night. Hence, the updates of the blog is likely to get affected in the near future. Please bear with me.

WINNING STROKES

Yesterday, the Indian stock market closed the lackluster trading session with modest losses. The barometer index, the S&P BSE Sensex, fell 113.23 points or 0.33% to settle at 34,082.71. The Nifty 50 index fell 21.55 points or 0.21% to settle at 10,476.70. Market opened with modest to strong gains on bargain hunting after a recent slump, but failed to hold-on to the gains as the session progressed. Mixed Asian stocks also hampered investors' risk appetite as domestic indices struggled for direction. The Sensex and the Nifty, both hit their lowest closing levels in more than one month.

Among key developments, the Reserve Bank of India (RBI), at the conclusion of its two-day Monetary Policy Committee (MPC) meeting today, 7 February 2018, left the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6%, on the expected lines. Consequently, the reverse repo rate under the LAF remains at 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate at 6.25%.

The decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

Overseas, European stocks edged higher after recent global markets turmoil. Asian stocks closed mixed. US stocks closed higher on 6 February 2018, albeit with wild swings witnessed in the day's trading, after two huge sell-offs in a row. The wild moves were attributed to a combination of factors like interest-rate fears, computer-driven trading and the obscure volatility funds that use leverage.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.43%. The S&P BSE Small-Cap index rose 1.95%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on the BSE. 1,988 shares advanced and 786 shares declined. A total of 94 shares were unchanged.

The total turnover on BSE amounted to Rs 4382.22 crore, compared with the turnover of Rs 5349.37 crore registered during the previous trading session.

Among private sector banks, HDFC Bank (down 1.37%), Axis Bank (down 0.96%), IndusInd Bank (down 0.52%) and City Union Bank (down 0.19%), edged lower. Kotak Mahindra Bank (up 0.03%), Federal Bank (up 0.38%), ICICI Bank (up 0.45%) and RBL Bank (up 1.11%), edged higher.

Most realty stocks advanced after the RBI kept the policy rates unchanged. Unitech (up 4.24%), Godrej Properties (up 3.94%), Anant Raj (up 2.50%), Phoenix Mills (up 2.19%), Indiabulls Real Estate (up 2.11%), Oberoi Realty (up 2%), Sobha (up 1.80%), Housing Development and Infrastructure (HDIL) (up 1.68%), Peninsula Land (up 1.13%), Prestige Estates Projects (up 0.62%), Parsvnath Developers (up 0.24%), DLF (up 0.13%) and Omaxe (up 0.13%), edged higher. Mahindra Lifespace Developers (down 0.75%), Sunteck Realty (down 2.57%) and D B Realty (down 4.98%), edged lower.

Purchases of both residential and commercial property are largely driven by finance.

The introduction of the long term capital gains (LTCG) tax on equities exceeding Rs.1 lakh at 10% in the Budget 2018, worries of higher retail inflation and subsequent hike in interest rates by the central bank going forward amid slipping fiscal targets, increase in minimum support prices (MSPs) for agriculture crops, rising global crude oil and commodity prices coupled with the concerns of inflation going northwards in the advanced economies like US, especially after a stronger-than-expected jobs report from US for the month of January, whacked investors' sentiment across the globe.

#3i Infotech Ltd touched Rs. how it could not cross the resistance zone of Rs.6.3-6.8. However,  Golden Cross has occurred on EOD Chart and the traders can expect the next targets of Rs.6.90 and Rs.7.30 within a short term. Those who have purchased at higher levels should average it, to reap significant gains in the coming days.

#A couple of days back, my associated brokerage house: BMA Wealth Creators Ltd gave buy call on Nifty CE10700, at Rs.48-49, when it zoomed to around Rs.108.90 intra-day.  Yesterday also it opened at Rs.108, but later settled at Rs.59.50, still much higher than the buy price. 

Join my associated Brokerage House, to get such scintillating Calls and stay ahead  of others. Demonetization is gone and is  history, and if you had made losses due to Narendra Modi's earlier stupidity, then this is the best chance to make up for the gains. 

Don't bother much about brokerage when higher gains can be made, by investing in some of the company's calls. Some people are too bothered with brokerage, that is why they end up slow trading platform and zero help in terms of research reports and intraday helps. This is a PENNY WISE, POUND FOOLISH FORMULA, as I have always advocated for a FULL brokerage platform rather than all those Budget brokers; the latter is best suited for experts only or who have multiple demat accounts.  

#I had earlier given a SELL call on the "Marwari" (Rajasthan based) company Urja Global Ltd, around Rs.11.30, when the speculators and punters were madly after this junk. The stock has already corrected by more than 30% from there and closed at Rs.7.84 on the NSE. The scrip of Urja Global Ltd has broken a major support at around Rs.8.4 and the next downward targets are Rs.7.40 and Rs.6.50. 

This fundamentally wear stock with FACE VALUE of Re.1, rose up insanely due to operators who made rosy videos about its ELECTRIC VEHICLE story and posted on the YouTube; which fooled the gullible traders and investors of DALAL STREET. But when there is no infrastructure at present for such vehicles both in Asia and Africa, where the company is touted to have huge future markets, it is just too much illusory and highly speculative to buy this stock at any price above Rs.2-3 (Rs.20-30 on Rs.10, Face Value). Stay away!!

#I had given a SELL on the speculative scrip, GVK Power and Infrastructure Ltd near its recent high of around Rs.27, when a south based BULL spun BULLISH stories about the company laden with too much debt and still has no clue as how to cut  it to manageable size. The scrip has already corrected by around 30%from there and closed at Rs.18.70 in the NSE, yesterday. I feel if the share breaks the support at around Rs.18.4, it can go down to Rs.16 and Rs.13.5. Stay away!!

#Those who had not booked profit in NDTV Ltd, can average the scrip at around Rs.42-43 or take fresh positions. With the chance of UPA coming to power in 2019, increasing everyday, due to some thoughtless policy blunders of the current NDA Government; this stock could become GOLDEN GOOSE of tomorrow. Stay invested!!

#Regarding Nifty, I would say as long as 104000 holds, the bulls will not have to worry much. The application of LTCG Tax, introduced by the FM will  not hurt much of the small investor community most of whom do short term trading and is already under the STCG Tax net. The LTCG TAX, which attempts to generate additional finance for the NDA government to boost up its rickety coffers and also to check the markets going too much CRAZY will hurt mostly the FIIs and Large Mutual Fund/ Share holders, like Rakeshesh Jhunhunwala or Ramesh Damani or Porinju Veliyath. The FIIs have been on a sell mode since the budget day and yesterday also they hawked shares worth Rs.1022.5 crores while the DIIs bought shares of value Rs.461.19 crores; as small mutual holders will not be affected much. Therefore, too much fear on this front is uncalled for.....and the market will slowly adjust to the new reality, as the government goes on spending mode during the next few months to give a forward kick to the depleting demand, following Demonetization and hurried implementation of the GST.

#I  have few SCRIPS which can give good returns over a period. Those who are willing to invest at around Rs.2 lakhs and share a part of the profit can send me a mail at; suman2005s@rediffmail.com or PM through my Facebook Profile. I feel it would NOT be an exaggeration to say here that: it be very difficult to make money on a consistent basis by simply following this blog - because there are lot of things, which are NOT mentioned here either due to paucity of time or some other reasons, but are send to the Premium Clients on appropriate time. Therefore, take professional help, as and when required, if you are really serious about making money from the Indian bourses. 
Also, lot of small investors whisper me behind camera that they are interested in joining my information service, but high subscription fees is what deters them. In this context, I would like to send this simple message to them: Don't bother too much about the current price tag of Rs.18000 per year for the Premium Service, if you are small investor. This price tag is for those who can pay or who have the ability to pay. In earlier too lot of small investors have joined me, giving only a fraction of what i demanded from the rich clients. 
Come to me, I will give a discount on that, so that you are comfortable with it and can be a part of me and my investing ideas. Tell me, what more I can do....since I also subscribe to many services which keeps me updated. Everyone has a limit and it is always prudent to take a 2nd opinion on serious issues like EQUITY INVESTING.

.~with inputs from Capital Market - Live News

Winning Strokes

Photo: 63 Moons Technologies Ltd

#The stock of Urja Global Ltd closed at Rs.5.44 down 4.90% in the lower circuits. If you can recollect, I had penned an article on 30 January, 2018 titled: Urja Global  Ltd: A case of Unbridled Stock Manipulation or too much Euphoria.....? At that time the scrip was quoting at Rs.9.72. After that I wrote several times in this blog not to get carried  away by the synthetic euphoria generated by vested groups and that any price of the stock above Rs.2-3, does not merit any attention -- the share I believe is moving towards that level. Now where are the Electric car, Solar Energy and African story gone? Why are the promoters who gave a (long) positive interview in YouTube are silent?

If possible read the contents of this blog on a regular basis,  to stay ahead of others. This blog is not an investment journal, however, I believe you will get lot of tips and tricks that might help you in chalking out an investment road map, in Indian bourses.

#The stock of Tata Motors Ltd moved to Rs.376.25, before closing at Rs.370.85. Tata Motors witnessed an overall growth of 38 per cent in passenger and commercial vehicle sales last month with its new passenger cars - Tiago, Tigor, Nexon and the Hexa being the growth drivers. In the commercial vehicle sector, industrial developments, fresh tenders in car carriers, coal movement and  the petroleum sector were attributed as growth drivers by the company. An increase in demand from construction, logistics, e-commerce and FMCG applications have also contributed to the retail of CVs. The growth is a promising one, considering the CV industry has been collectively limping back from the slow down witnessed in sales in 2017. 

Tata Motors Ltd reported a surge in quarterly profit, driven by higher sales at its Jaguar Land Rover (JLR) business after an exceptionally weak quarter a year earlier.

Net profit for the quarter ended December 31 came in at ₹11.99 billion ($187.15 million) compared with ₹937.7 million in the same quarter a year ago; the biggest jump in seven quarters. Tata Motors Ltd reported a near 11-fold rise in fiscal third-quarter profit as a surprise turnaround in its India business helped offset a slowdown in its Jaguar Land Rover (JLR) unit. 

Those who have bought the stock today in intraday dip can look for  short term targets of Rs.182-184; next week.

#The stock of Aban Offshore Ltd today closed flat at Rs.169.90, amidst a decline in the crude oil prices in the international markets. However, oil analysts expect the price of crude to rise steadily this year, but remain in a tight band dictated by U.S. shale output growth on one side and OPEC supply restraint on the other, a Reuters poll showed on Wednesday. The survey of 37 economists and analysts forecast Brent crude would average $63 a barrel in 2018, slightly higher than $62.37 projected in the previous month's poll. "OPEC's level of compliance (with agreed production curbs) and the pace of U.S. shale's output growth are likely to be the key fundamental price drivers in 2018," Ashley Petersen of Stratas Advisors said. Meanwhile,  the top oil exporter Saudi Arabia is likely to cut prices for all crude grades it sells to Asia in April after demand for Middle East crude fell in last month’s trade, trade sources said on Thursday. 

Based on the historical trend, population growth and economic outlook, most of the international agencies and consultants were of the view that oil demand would reach 121 mmbpd by 2040. However, as the automotive industry becomes more incentivized to build electric vehicles (EVs), this is unlikely.

Surely, EVs won’t replace all ICEs overnight. That transformation would require over decades. Therefore, no one is claiming that oil demand in road transportation in particular will be wiped out suddenly.  Offshore drilling rigs are an intrinsic part of the oil discovery and exploration industry and Aban Offshore Limited is a major player in this sector. 

In another development, there were earlier media reports that Promoters of Aban Offshore Ltd have offered to pay up to $600 million in a one-time settlement to 17 banks to which it collectively owes nearly $2 billion. The banks, meanwhile, are willing to take up to a 50% haircut which translates to around $1 billion as a potential one-time settlement -- this means perhaps we are very close to a settlement. 

#The stock of 63 Moons Technologies Ltd (Rs.92.95), formerly known as Financial Technologies Limited, was recommended today at around Rs.94-95, for short term targets of Rs.117-121. 

It is pertinent to mention here that Venkat Chary, Chairman of 63 moons technologies said on January, '18: "There are no liabilities today. Nothing has been proven. Not one contract entered into on NSEL platform has been proved illegal or irregular as on today. If any wrongdoing is proved against NSEL then at most we can take it to bankruptcy. We, as a holding company, have invested Rs 40 crore in NSEL and we will lose only that amount".

63 moons technologies (formerly FTIL) has already filed a special leave petition (SLP) in the Supreme Court challenging the Bombay High Court verdict upholding an MCA order directing the merger of scam-hit NSEL with FTIL. 

In February 2016, the GOI had passed an order directing the merger of scam-hit National Spot Exchange Ltd (NSEL) with FTIL. The draft order was issued in October 2014. It was the first case of the government ordering the merger of two private sector companies (under Section 396 of the Companies Act 1956).  

Section 396 in The Companies Act, 1956:

Power of Central Government to provide for amalgamation of companies in public interest.

(1) Where the Central Government is satisfied that it is essential in the public interest that two or more companies should amalgamate, then, notwithstanding anything contained in sections 394 and 395 but subject to the provisions of this section, the Central Government may, by order notified in the Official Gazette, provide for the amalgamation of those companies into a single company with such constitution; with such property, powers, rights, interests, authorities and privileges; and with such liabilities, duties, and obligations; as may be specified in the order. 

THE QUESTION THEREFORE REMAINS, HOW PENALIZING THE LEGITIMATE SHAREHOLDERS OF A COMPANY BECOMES, A CAUSE OF PUBLIC INTEREST,ESPECIALLY WHEN A COURT CASE IS GOING ON AND NOTHING HAS BEEN ESTABLISHED??!! ......only because NSEL was a subsidiary of Financial Technologies, where the latter held 99.99% stake? Now what are the characteristics of a subsidiary? 

According to an article in The  Economic Times, 26 November, '12: 

Each of these is a separate, legal entity with its unique identity and can be owned, either wholly or partially, by the parent company. The reasons for creating a subsidiary vary. It is either borne out of necessity (the nature of the parent firm's business, expansion to other geographies, etc), is the result of acquisitions or forays in a new line of business, or is formed purely as a legal wall to limit the liability of one company if either firm fails. 

The argument that:  If such amalgamations are not done then any person will be free to commit future frauds simply by floating a company and hiding behind a corporate veil, is misplaced, why?

Because Section 396 under which the merger was determined to be necessary in public interest, was meant to be used only for "exceptional cases". A loss in subsidiary company, due to highhandedness of its management cannot be construed as "Unique" and is a handiwork of the parent company. This is Utopian and goes against the principle of corporate spirit of independent management functions; apart from vitiating the concept of limited liability.  

I am therefore, sure that the Honourable Supreme Court of India, will take a note of the same and declare the government of India's illogical fiat as null and void. On the flip side if the apex court goes the High Court way, then it would set a dangerous precedence violating the concept of limited liability and would only mirror the face of a fascist regime; hereto India has never seen or witnessed.

Meanwhile, the net profit of 63 Moons Technologies rose 1564.29% to Rs.2.33 crore in the quarter ended December 2017 as against Rs.0.14 crore during the previous quarter ended December 2016.

The company’s new name is inspired from the 63 moons that orbit Jupiter -- it seems at present the planetary adjustments are progressing in the right direction, to get it's name cleared out of Rs.5,600 crore NSEL money laundering mess.

 Winning Strokes

As expected the markets started to rally post Christmas celebrations. I had earlier asked all through Facebook and Twitter posts, suggesting investors to buy good stocks during the market fall to take advantage of any post Christmas Rally. Those have heeded to that advice might be feeling happy.

Meanwhile, the shares of IRB Infrastructure Ltd (Rs.212.35), Suzlon Energy Ltd (Rs.8.90) and A2Z Infra Engineering (Rs.8.25) hit their respective Buyer Freezes. Congratulations to the Shareholders who bought the scrips on my recommendations.

Buy the shares of JBF Industries Ltd (Rs.20.80), for targets over Rs.50. JBF group is the second-largest manufacturer of textile-grade chips and third-largest producer of partially-oriented yarn and biaxially-oriented polyethylene terephthalate (BOPET) chips and films domestically.  

The company got badly affected due to Covid-19 Pandemic. However, the things are improving and its fundamentals are set to take a quantum jump, after the new management takes over the working machinery of the company. 

JBF Industries Ltd is engaged in the production of products in the polyester value chain, such as PET chips, which are of bottle grade, textile grade and film grade; polyester yarn, such as partially oriented yarn, polyester filament yarn, full drawn yarn and other specialised yarn; and PET films, which are of thin grade, thick grade and metallised grade. It defaulted on its debt obligations due to its weak liquidity position, according to a rating report by Care Ratings.

In 2020, RIL acquired a 37.7% stake in Alok Industries through the insolvency resolution process. It had then participated in the bidding process for the company in consortium with JM Financial ARC.

According to a Bombay Stock Exchange filing, CFM Asset Reconstruction Pvt Ltd has taken symbolic possession of all the secured assets of the Company.

Moreover, according to analysis presented by Simply Wall, JBF Industries had debt of ₹17.9b (Rs.1790 crore) at the end of March 2021, a reduction from ₹26.6b (Rs.2660 crore) over a year. However, it does have ₹1.49b in cash offsetting this, leading to net debt of about ₹16.4b (Rs.1640 crore), which I feel is looking manageable, with such a robust set up in place.

Besides, one redeeming factor for JBF Industries Ltd (Rs.21.79) is that, it turned last year's EBIT loss into a gain of Rs.1.40 billion (Rs.140 crore), over the last 12 months.

Also, according to a news in Financial Express, Reliance Industries Ltd is likely to take over stressed polyester manufacturer JBF Industries in consortium with CFM Asset Reconstruction Company (ARC).

Meanwhile, a recent report states that the Global Amorphous Polyethylene Terephthalate (PET) Market is expected to grow by $ 6.21 bn during 2021-2025, progressing at a CAGR of 5.96% during the forecast period.

By the way, why the regulators have put the scrip of this renowned Textile company, viz JBF Industries Ltd (Rs.20.80) in the T - group and not the stocks like Sintex Plastics, Sintex Industries, Urja Global, etc is beyond my comprehension. Earlier, they did the same thing, with the stock of BRFL (Rs.7.30) and if you remember, I had raised my concern during that time too...

The surveillance department of stock exchanges should explain to the investors, why a certain stock has been placed in the T - group. Otherwise, this kind of arbitrary move, can dent the confidence of the Shareholders/Investors.

#Buy the Shares of Dhanlaxmi Bank Ltd near Rs.14.10 for short term targets of Rs.17/18. SL: Rs.11.70. It has a TTM  PE of 11.23 against the Sector PE of 29.04. The Book Value Per Share is whopping Rs.28.67. Therefore, this is one of the best bank stocks for short term play. 

The figure above shows the net profits of Dhanlaxmi Bank for a certain period. The standalone September 2021 net Interest income of the bank, came at Rs.90.66 crore up 2.26% on Y-o-Y basis. 

Total income of Dhanlaxmi Bank during the July-September period of 2021-22, grew to Rs.266.59 crore from Rs.249.66 crore in the same period of 2020-21. 

Against this the market cap of the Bank is only Rs.366 crores, which shows that its stock is grossly undervalued. Photo: Moneycontrol.com. 

Market Pulse

The stock market rebounded sharply in mid-afternoon trade with the two key benchmark indices just falling shy of their intraday highs. At 14:17 IST, the barometer index, the S&P BSE Sensex rose 246.71 points or 0.75% at 33,279.80. The Nifty 50 index advanced 61.15 points or 0.6% at 10,215.35. Stocks of key public sector banks dropped.

Key indices started the session on a strong footing on positive Asian stocks as worries surrounding trade war eased on reports US President Donald Trump's import tariff plan may spare select countries from much of the impact. Indices trimmed gains in morning trade. Later, indices came off the day's low and traded with modest gains till afternoon trade. Key indices rebounded sharply in mid-afternoon trade.

The S&P BSE Mid-Cap index rose 0.09%. The S&P BSE Small-Cap index advanced 0.06%. Both these indices underperformed the Sensex.

The breadth, indicating the overall health of the market, was weak. On the BSE, 1,640 shares declined and 985 shares advanced. A total of 146 shares were unchanged.

Overseas, European stocks traded mixed ahead of the European Central Bank's (ECB) monetary policy statement is due later today, 8 March 2018. The central bank is expected to be cautious to prevent any unwanted tightening of financing conditions amid mounting global insecurities, especially in the wake of recent tariffs announcement by the US President.

Asian stocks edged higher amid news of potential US tariff exemptions. US stocks closed well off session lows yesterday, 7 March 2018 after the White House hinted Canada and Mexico could be exempt from tariffs proposed by President Donald Trump.

Stocks of key public sector banks dropped. IDBI Bank (down 6.5%), Bank of India (down 3.17%), Union Bank of India (down 0.57%) and Punjab National Bank (down 0.1%) edged lower. Bank of Baroda (up 0.19%) edged higher.

State Bank of India (SBI) was up 2.05%. The Reserve Bank of India (RBI) vide its press release dated 7 March 2018, imposed a penalty of Rs 40 lakh on SBI for non-compliance with the directions issued by the central bank on detection and impounding of counterfeit notes. The announcement was made after market hours yesterday, 7 March 2018.

Stocks of private sector banks were mixed. Yes Bank (down 2.38%), Kotak Mahindra Bank (down 0.7%) and IndusInd Bank (down 0.3%) edged lower. ICICI Bank (up 1.9%), Axis Bank (up 0.89%) and HDFC Bank (up 0.64%) edged higher.

Aviation stocks were mixed. SpiceJet (up 3.02%) and InterGlobe Aviation (up 0.39%) edged higher. Jet Airways (India) (down 3.78%) declined.

IT major TCS was up 0.19% after the company announced during trading hours today, 8 March 2018 that its flagship product TCS BaNCS has gone live in Hunan Rural Credit Union (HNRCC) in Hunan Province located in Central China. This go-live expands TCS BaNCS' footprint in China with three other large credit unions that are already fully operational in addition to 20 other financial institutions including one of the largest Banks in the country.

Foods & Inns galloped 8.21% after the company scheduled a board meeting on 13 March 2018 to consider sale of factory land at Chembur, Mumbai. The board will also consider allotment of convertible warrants into equity shares issued to promoters of the company on preferential basis and a proposal for acquisition of additional shareholding in Finns Frozen Foods (India). The announcement was made during market hours today, 8 March 2018.

Today's calls to Premium Members:

#Buy BANK NIFTY FUTURE at around 24280; SL: 24172; T: 24410..Book PARTIAL PROFIT at around 24332.

#Nifty_Spot: the Support zone at 10147 - 10150 is being tested.....Your intraday or short term buy/sell decision hinges on whether Nifty support at 10147 holds or not..Intraday BUY NIFTY FUTURES on declines at around 10165; SL below 10140; T - 10205.

#The stock of Urja Global Ltd hit another lower circuit today at Rs.4.55 in the NSE. If you remember, I had repeatedly asked all my well-wishers and blog readers to stay from this counter since it was trading above Rs.9. The stock has more than halved from  that price. The share does not merit attention above Rs.2-3. 

#TV Vision Ltd (Rs.15) is running the popular Mastii TV Channel along with others. The stock is available at dirt cheap price. One good quarter means the share has the potential to give at least 50% return from here.

#Intraday BUY APOLLO TYRE at around Rs.255.5,  SL: Rs.252.5, T: Rs. 259-260..1st target of Rs.259  and Intraday: 2nd Target of Rs.260, has been ACHIEVED.

#Positional Buy Union Bank of India Ltd at around Rs.96-97, T: Rs.111-117, SL: Rs.86.

#I will soon Recommend a MOMENTUM Small  Cap Counter. Those who will join my Premium Service by next week, will get this scrip name along with the existing members; which alone might be able to cover the cost of the subscription. Also note that I have devised a special discount scheme for small investors (those who have portfolio sizes, below Rs.1 lakh). 
Moreover, you will get regular inputs on some of my recommended counters like HDIL, 3i Infotech Ltd, Unitech Ltd, J P Associates Ltd, etc. 

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

Winning Strokes: Think Different

The stock of Vakrangee Ltd (Rs.66.85) almost doubled from the recommended price of Rs.33-34. The stock could find the next resistance around Rs.75, which also happens to be its 50D EMA. When I recommended the stock most from CNBC TV18 and Times Now, were bearish on it and were highlighting the corporate governance issues. Those who had taken my call at that time is now laughing their way into banks.

SKM Egg Products Ltd (Rs.80.50), which is one of the largest egg exporters from India, is planning to triple its domestic market share and achieve ₹500-crore turnover by 2021-22. According to a report on The Hindu, the company's Eggs are exported to more than 26 countries, including Japan, Europe and Russia. On a daily basis, the company processes more than 16.5 lakh eggs per day of which 5.5 lakh eggs are processed in-house and rest procured from private parties.
Though, for the full year, net profit of the company declined 46.37% to Rs.0.96 crore in the year ended March 2018 as against Rs.1.79 crore during the previous year ended March 201; sales rose 44.32% to Rs.282.07 crore in the year ended March 2018 as against Rs.195.45 crore during the previous year ended March 2017.
Lurking fear of Food inflation accompanied by Festive Demand is likely to keep the price of eggs buoyant in the coming days. You can add the scrip in every decline with a short term target of Rs.97.

The scrip of TV Vision Ltd (Rs.8.30) is consolidating near Rs.8-9 ranges. As mentioned umpteen number of times earlier, the scrip is from the reputed Sri Adhikari Brothers and hence, I am expecting it move to Rs.14 by the end of October, '18.

I will probably recommending a momentum counter on Monday. Those who want to invest in that scrip should get enrolled in my Premium Service by Sunday. Also, those who want to know about MBL Infrastructure Ltd (Rs.14.85), 3i Infotech Ltd (Rs.4.32), Urja Global Ltd (Rs.3.43), NDTV Ltd (Rs.51.45) etc, should either trade through my recommended brokerage house (BMA Wealth Creators Ltd) or get enrolled in my Premium Service. Making money from the stock market is not that easy and these days, it is becoming difficult even for the experts to eke out cash from the markets on regular basis. 

Stock market is no longer a PART TIME business. If you do not have time for research, then don't come here and burn your hard earned cash. Invest in Real Estate or Fixed Deposit and enjoy a hassle free life.  Also, if you have lost money in the past, then don't lose hope; gather some funds from somewhere and come to me, I will help you in this respect. 

WINNING STROKES

The stock market registered modest gains as bargain hunting emerged on the bourses after seven straight sessions of losses. The barometer index, the S&P BSE Sensex, rose 330.45 points or 0.97% at 34,413.16. The Nifty 50 index advanced 100.15 points or 0.96% at 10,576.85. Pharma stocks advanced. Cement major ACC surged after reporting strong Q4 results. Bhel advanced after strong Q3 earnings.

Key indices opened higher and extended gains in mid-morning trade. Later, indices traded within a narrow range with strong gains till afternoon trade. Indices trimmed some gains in mid-afternoon trade and closed with modest gains with a bit of volatility seen in the last hour of trading.

Stocks advanced as bargain hunting emerged after seven straight sessions of sell-off in the domestic equities in the wake of a combination of domestic and global factors. Lesser hawkish tone of the Reserve Bank of India (RBI) in its monetary policy meeting concluded yesterday, 7 February 2018, also supported the gains on the bourses. The central bank had kept key policy rates on hold, reiterating its intention to keep an eye on the inflation figures going forward and to support growth.

Earlier, the key indices had declined for seven sessions in a row after the Government announced re-introduction of long term capital gains (LTCG) tax on equities exceeding Rs 1 lakh at 10% in Budget 2018, surging interest rates on sovereign debt in US, and amid rising global crude oil and commodity prices.

Overseas, European stocks edged lower as investors waded through the latest batch of corporate earnings, ahead of a central bank decision in the UK. Asian stocks ended on a mixed note. China's trade surplus shrank in January on huge imports surge, data released today, 8 February 2018 showed. Trade surplus for January, in Yuan terms, came in at CNY 135.80 billion.

US stocks declined yesterday, 7 February 2018, after trading in a wide range again, as interest rates climbed back toward multi-year highs.

Among secondary indices, the S&P BSE Mid-Cap index rose 1.82%. The S&P BSE Small-Cap index advanced 2.25%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was quite strong. There were more than three gainers for every loser on BSE. 2,172 shares advanced and 640 shares declined. A total of 118 shares were unchanged.

The total turnover on BSE amounted to Rs 5547.07 crore, compared with the turnover of Rs 4395.53 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 2.91%), the S&P BSE Realty index (up 2.51%), the S&P BSE Basic Materials index (up 2.48%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.63%), the S&P BSE Industrials index (up 1.45%), the S&P BSE Telecom index (up 1.45%), the S&P BSE Capital Goods index (up 1.44%), the S&P BSE Teck index (up 1.41%), the S&P BSE IT index (up 1.40%), the S&P BSE Metal index (up 1.35%), the S&P BSE Consumer Durables index (up 1.32%), the S&P BSE Finance index (up 1.28%), the S&P BSE Auto index (up 1.17%) and the S&P BSE Bankex (up 1.12%), outperformed the Sensex. The S&P BSE Energy index (up 0.45%), the S&P BSE FMCG index (up 0.36%), the S&P BSE Power index (up 0.31%), the S&P BSE Utilities index (up 0.30%) and the S&P BSE Oil & Gas index (down 0.25%), underperformed the Sensex.

Banks stocks advanced. Among public sector banks, IDBI Bank (up 6.31%), Indian Bank (up 3.18%), State Bank of India (up 2.97%), Canara Bank (up 2.96%), Allahabad Bank (up 2.42%), Andhra Bank (up 2.27%), Syndicate Bank (up 2.19%), Corporation Bank (up 2.12%), Bank of Baroda (up 1.56%), Punjab National Bank (up 1.50%), Union Bank of India (up 1.50%), Bank of India (up 1.21%), United Bank of India (up 0.98%), Bank of Maharashtra (up 0.79%) and Dena Bank (up 0.66%), edged higher. UCO Bank (down 0.17%), Central Bank of India (down 0.52%), Vijaya Bank (down 1.15%) and Punjab & Sind Bank (down 2.01%), edged lower.

Among private banks, City Union Bank (up 3.95%), Axis Bank (up 1.75%), Federal Bank (up 1.39%), Kotak Mahindra Bank (up 1.33%), RBL Bank (up 1.08%), ICICI Bank (up 0.69%), IndusInd Bank (up 0.68%), Yes Bank (up 0.56%) and HDFC Bank (up 0.46%), edged higher.

Pharma stocks advanced. Cipla (up 7.83%), Sun Pharmaceutical Industries (up 6.32%), Dr Reddy's Laboratories (up 3.18%), Wockhardt (up 2.93%), Strides Shasun (up 2.80%), IPCA Laboratories (up 2.59%), Piramal Enterprises (up 2.49%), Divi's Laboratories (up 2.19%), Cadila Healthcare (up 2.13%), Glenmark Pharmaceuticals (up 1.47%), Alkem Laboratories (up 1.41%) and GlaxoSmithKline Pharmaceuticals (up 0.49%), edged higher.

On the macro front, the Reserve Bank of India (RBI), in a notification dated 7 February 2018, announced relief measures for micro, small and medium enterprises (MSMEs) registered under Goods and Services Tax (GST). Presently, banks and non-banking finance companies (NBFCs) in India generally classify a loan account as non-performing asset (NPA) based on 90 day and 120 day delinquency norms, respectively. The formalisation of business through registration under GST had adversely impacted the cash flows of the smaller entities during the transition phase with consequent difficulties in meeting their repayment obligations to banks and NBFCs.

As a measure of support to these entities in their transition to a formalised business environment, it has been decided that the exposure of banks and NBFCs to a borrower classified as MSME under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, shall continue to be classified as a standard asset in the books of banks and NBFCs, subject to a set of conditions, the central bank said.

#As expected the Indian markets bounced back, after a long hiatus. Nifty did got support around 10400 througout the day. The next targets for the Nifty spot comes around 10630 and 107286 on the upside. However, I feel the action will now be seen in the badly beaten small and mid cap sectors. Remain invested and average wherever necessary; but don't average every scrip.

#NDTV Ltd today hit the BUYER FREEZE in the mid afternoon trade at Rs.45. Yesterday, the traders and investors were suggested a buy on the counter on view of increasing chances of UPA returning  to power in 2019. However, the stock has some resistance around Rs.45-46.5 ranges which it needs to cross with good volume for the next target of Rs.51.

#The stock of 3i Infotech Ltd (Rs.6.35) today moved up with good volume, with rising RSI, indicating further bullishness in the counter. The investors should do well to accumulate the scrip in every decline and buy with long term targets of Rs.50 and Rs.100. You need to just buy and hold, like your fixed deposits. 

#The scrip of HDIL today moved up from the oversold positions with reasonable volume to close just below the resistance zone of Rs.52.60-52.70. The next targets for the scrip are Rs.59 and Rs.65, which it will easily reach during the next few trading sessions. HDIL is not a company but a Real Estate Empire, with a land bank of around 20 crore sq.ft in Mumbai Metropolitan Region, where the land cost is a major part of the total cost of construction. Even if we take a modest value of Rs.1500 per sq.ft of land in MMR, the land bank valuation comes to around Rs.30,000 crore, which will always give some cushion against debt. 

#The share of Urja Global Ltd today hit another lower circuits to close at Rs.7.45 in the BSE. The stock has been hitting the Lower Circuits, since my sell call at around Rs.11.30. I feel any price of this Re.1 face value scrip, above Rs.2-3 is unjustifiable. 

#The stock of GVK Power & Infrastructure Ltd today hit the buyer freeze at Rs.196.50 (on Rs.10 face value), probably due to "Hero Worship" formula, when the company has over the years amassed ~Rs.25,000 crore debt, raising its debt-to-market cap to as high as 13. I am not understanding the reasons to buy this Re.1 face value scrip at around Rs.19.6, when there are 100s of stocks, which  are looking screaming buys. 

In its annual report, the company said it had delayed payment of loan and interest and certain loan accounts have been classified non-performing assets by banks. 

Anyway good luck to those who buys JUNKS at such a high price because a fund manager has bought the same. Will the fund manager tell you when he exits the scrip, distributing the shares of the company on to your hands? 

Did Rakesh Jhunjhunwala ever whisper into your ears......before EXITING the companies like Orchid Chemicals and Pharmaceutical Ltd (now Orchid Pharma Ltd; CMP: Rs.17.85) or Hindustan Oil Exploration Ltd (Rs.121.30)? 

Moreover, the Financial/Business TV  Channels will never inform you why Rakesh Jhunjhunwala's Viceroy Hotels Ltd (Rs.16.15) failed to perform in the bourses, but will generally shout, about his investments in Prakash Industries Ltd (Rs.205.60) or Titan Company Ltd (Rs.800.65)....
This is how the whole system of stock market works, in collusion with media......Huh!! As a parting note, I would  like to point out that: I also recommended Prakash Industries Ltd at around Rs.41-42, but the media will always attribute the gains in the scrip price to RJ only......LOL!!

#My recommended Energy Development Ltd, an Amar Singh-Jaya Prada venture, at around Rs,17-18, today hit the upper circuits at around Rs.24.55.  The immediate targets for the scrip are Rs.27-29, which I feel will be achieved very shortly. 

#I have few scrips which could give good returns over a period. These are the scrips which are infront of your eyes but you might not find the reasons to invest in them, till they start hitting the upper circuits, due to hidden valuations. If anyone is willing to invest around Rs.3-5 lakhs in those scrips please do let me know. You will get the 1st mover advantage and naturally the gains will be higher. This is different from the Premium Service, which I run..

Also, small investors/traders can join my information service at a discounted rate or my associated brokerage house: BMA Wealth Creators Ltd to stay ahead of others. Exiting a stock is always very difficult than buying a scrip and hence expert opinion matters.

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

Winning Strokes

Yesterday, the BSE Sensex closed at 56,319.019 up 497 points (+0.89%), while the Nifty settled at 16,770.85 up 156.65 points (+0.94%). I'm expecting the Nifty to gradually trend towards 16400/15870 level in the coming days, before moving up. Photo: Times Now.

Finance Minister Nirmala Sitharaman will present her third budget and will be assisted by a team of advisers and secretaries with a mission to boost economy in these outbreak times. Sitharaman has promised that the upcoming Budget will be of a kind never seen before, one where fiscal concerns will be kept aside and there could be record public spending, with an objective of boosting demand and creating jobs. So, next year we can look forward to Sensex touching 70,000.

#The stock of Shriram EPC Ltd (Rs.7.45) touched a high of Rs.7.65 in the NSE before closing near the day's high. 

The Dubai-based family office Mark AB Capital will take over Shriram EPC, an engineering procurement and construction contractor and part of the financial services conglomerate Shriram group by picking up 26% stake for Rs.350 crore. Hence, this Dubai based firm is the New Promoter of Shriram EPC. Now we know from our previous experience that FERA Companies command high valuations. So, we need to look at the counter of Shriram EPC Ltd (Rs.7.50), from a new angle. Considering the brand of its new promoter, Bullishness associated with the construction sector and the upcoming Infrastructure focused budget we can look for long term targets of Rs.37/45/72/167/291. Buy on Market Declines. This is a sure shot bargain, as the company will not face working capital hassles and will now operate on international scale (foreign contracts).

The stock of Den Networks Ltd (Rs.40.25) is from the Mukhesh Ambani group, and has high safety associated with it. They also obtained a non-exclusive license from the DoT to set up and operate internet services all over India.  

Some people are of the opinion that, 5G Services could bring about the end of cable TV, whereas others think it won’t have much of an impact. 

However, the Den Networks Ltd is a hybrid player and therefore could excel in  this space or could take over the business of pure cable TV operators, by dishing out to customers, internet streaming platforms. I mean, even if 5G services next year pose some challenges to Cable TV sector, Den Networks will be able to match any drop in revenue through high speed video streaming.

The improvements to wireless broadband technology through the advent of 5G services can threaten cable TV companies, and hence the investors were shying away, but Den Networks has an excellent story. Up until now, while 4G LTE delivers excellent speeds, its capabilities are nothing compared to what a cable connection can give you. This is going to change, with India going for 5G services tentatively in the middle of next year. Many companies routinely offer connections of 200 Mbps or more, with Gigabit Internet now also available in most places. This means that 5G can replace cable Internet in some places, which would be detrimental to PURE cable TV business model and hence could help hybrid players like Den Networks to take over their businesses (if any). 

To give you a little better idea of what’s happening in the US on cable TV industry, here are some stats: 

• The 2 largest cable companies, Comcast and Charter, are trading at record high prices. Charter stock prices are up more than 150% in the past 5 years. (Sources 1, 2).
• In 2020, Charter added more than 2.1 million home Internet customers, up from 1.3 million the year before. (Source 3).
• Year-over-year growth for Comcast’s Internet service is above 5%, the highest rate in more than 6 years. (Source 4).
• In 2020 alone, more than 6 million people cut the cord, choosing to drop cable TV services in favor of streaming-only options. (Source 5)

Over and above, Den Networks, is debt free, comes from a big brand, entertains 13 million+ households in India across 13 key states and 433 cities and has the Largest Subscriber Base amongst all cable players in India. 

Besides, after revolutionising the internet adoption in India with Jio’s free internet data plans, Mukhesh Ambani has drawn up the plan for a second wave of the digital revolution through JioFiber broadband services.

On September 5, 2019, Reliance Jio launched a fiber-to-the-home (FTTH) internet broadband service JioFiber, also known as Jio GigaFiber, in over 1,600 cities in India. This is expected to get more aggressive, post 5G Launch in India. 

JioFiber is offering a speed starting from 100 Mbps and go all the way up to 1 Gbps. These plans come with access to free domestic voice calling, conferencing and international calling; TV video calling and conferencing, entertainment OTT apps, gaming, home networking, community management services, device security, AR/VR experience and more.

• High-Speed Internet
• Voice Assistant
• Free Voice And Video Calling
• 4K Set-Top Box
• Music And Video Streaming
• Home Networking And Smart Homes
• Jio Security
• Smart TV Experiences
• JioGate Community Management
• Online Multiplayer Gaming
• Virtual Reality Experiences

Those having a long term vision should have the scrip of Den Networks Ltd (Rs.40.25) in their kitties.

In another development, the case of Future Retail Ltd (Rs.54.35) is now all set to go in its favour of the master Indian strategist, Kishore Biyani, as he is all set to gift Biriyani...😀😀to his shareholders. The Economic Times writes, Future may use CCI order to get Amazon cases quashed. 

I have mentioned many times, in this blog that it will be very difficult, if not impossible to beat Mukhesh Ambani in his home turf. And the new developments, just indicate that.....We can now look forward for targets of Rs.100+, in the coming days. Accumulate on declines.

You can continue accumulating the shares of Bombay Rayon and Fashions Ltd (Rs.7.15) for targets of Rs.27/35. The company has opened new stores in Bangalore. Photo: Bombay Rayon and Fashions Ltd's new store in Bangalore.

Another, I want to ask the regulators: on what basis a stock is put in T - group (BL in NSE)? I see Stocks like Sintex Plastics Ltd (Rs.13.45), Trident Ltd, 3i Infotech, Urja Global Ltd (Rs.14.90), Nagarjuna Fertilizers Ltd (Rs.11.35), HCC (Rs.15.60), etc which are either hitting continuous Upper Circuit for weeks or there are too much speculation, have still not been shifted in Trade - to - Trade segment (T - group), while it is not the case for many others, Reliance Capital (Rs.13.65), Reliance Infra Ltd (Rs.95.15), A2Z Infra Engineering Ltd (Rs.7.70), etc. 

If the stock exchanges do this of regulation, then obviously the shareholders will question the intent of the regulators. I'll only say - we either have a very bad regulation policy or the persons who are entrusted with the implementation of the surveillance policies/mechanism are probably doing the work with a jaundiced vision. 

My request to the regulators of stock Exchanges: Kindly, take note of my concerns and take necessary steps to correct the aberration.

The shares of Suzlon Energy Ltd (Rs.7.45) has been hitting the buyer since the last couple of days. We can look forward for targets above Rs.10, as the government of India is all set to implement the Renewal Energy targets of 2022. The upcoming budget is likely to give incentives for the Renewal Energy sector. Accumulate in Market Declines. 

Buy the shares of A2Z Infra Engineering Ltd near the CMP of Rs.7.55, for short term targets of Rs.12/15.

According to Simply Wall, A2Z Infra Engineering Ltd (Rs.7.55) had a debt of Rs.3.63 billion as of 31 March, 2021, down from Rs.4.79 billion. However, it has a cash reserve of Rs.2.13 billion, hence its net debt is a meagre figure of Rs.1.50 billion -- this is very less, for the companies in its sector of performance.

Market Pulse

Key benchmark indices were trading lower in early trade, tracking negative leads from Asian markets and overnight slide on the Wall Street. At around 10:51, the BSE Sensex was seen at 35,925.06 down 108.67 points or 0.30%, while Nifty was trading at 11,023.05 down 26.60 points or 0.24%.

The Sensex slipped below the psychological 36,000 mark at the onset of trading session after opening above that level.

Among secondary barometers, the BSE Mid-Cap index was down 0.39%, underperforming the Sensex. The BSE Small-Cap index was down 0.11%, outperforming the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 706 shares fell and 575 shares rose. A total of 61 shares were unchanged.

Overseas, Asian shares were trading lower after US stocks sold off for a second day. US stocks declined on Tuesday, as heavy losses in health-care and energy shares weighed on the main indexes. Climbing US bond yields, which imply a rise in borrowing costs, also put pressure on stocks.

US Federal Reserve's Federal Open Market Committee (FOMC) commenced its two-day meeting on monetary policy yesterday, 30 January 2018, with a policy decision due later in the global day today, 31 January 2018. The Fed, in a widely expected move, had raised interest rates by 25 basis points (bps) to a range of 1.25-1.5% in its December monetary policy meeting.

Closer home, Mahindra & Mahindra (M&M) was up 0.53%. The company announced its foray into the sprayers business under the aegis of its Farm Equipment Sector through the acquisition of a 26% equity stake in M.I.T.R.A. Agro Equipments, a Maharashtra-based AgTech company (MITRA). The announcement was made after market hours yesterday, 30 January 2018.

Under the transaction, which is expected to close by February 2018, M&M will acquire a 26% equity stake in MITRA through a fresh infusion of capital into the company. The association with Mahindra will help accelerate the growth of MITRA, which designs and manufactures proprietary sprayers for horticulture crops.

Bajaj Auto was down 0.68%. The company said that pursuant to letter dated 16 January 2018 received by the company from the Workers Union (Vishwa Kalyan Kamgar Sanghatana), an indefinite hunger strike has commenced from 29 January 2018 at Akurdi and Chakan. The main reasons for the indefinite hunger strike as mentioned in the letter are the pending issue of eight workmen dismissed from the services for various acts of misconduct in 2013 -14 and dismissal of six workmen who did not report at the place of transfer/ deputation in spite of court orders, and delay in conclusion of the wage review process which is due with effect from 1 April 2016. The matter is pending before the Industrial Court, Pune and High Court of Bombay. The announcement was made after market hours yesterday, 30 January 2018.

Bharat Electronics was down 4.63%. The company's net profit fell 18.93% to Rs 302.84 crore on 12.92% rise in total income to Rs 2562 crore in Q3 December 2017 over Q3 December 2016. The announcement was made after market hours yesterday, 30 January 2018.

The board of directors of the company approved the proposal to buyback of not exceeding 2.03 crore shares of the company representing 0.83% of the total number of equity shares in the paid-up share capital of the company, at a price of Rs 182.50 per equity share payable in cash for an aggregate consideration not exceeding Rs 372.25 crore, representing 5% of the aggregate of the fully paid-up equity share capital and free reserves as per the audited standalone financial statements of the company for the financial year ended 31 March 2017.

Syndicate Bank was down 0.41%. The bank said that the board meeting will be held on 2 February 2018, for approving the revised capital plan of the ban from earlier Rs 3500 crore (of which Rs 1150.80 crore has been raised through qualified institutional placement) to Rs 3990 crore for the financial year ending 31 March 2018). The equity capital may be raised through QIP/rights issue/follow on public offer and or preferential allotment to LIC, Government of India and other financial institutions in one or more tranches depending on the prevailing market conditions. The announcement was made after market hours yesterday, 30 January 2018.

Indiabulls Housing Finance was down 0.69%. The company said that the bond issue committee of the company approved the issue and allotment of Rs 315 crore, 7.8% payable annually secured synthetic Rupee notes due February 2021. The announcement was made after market hours yesterday, 30 January 2018.

The next major trigger for the market is Union Budget 2018-2019, which will be presented by the finance minister Arun Jaitley in the parliament on Thursday, 1 February 2018.

The Budget Session of the parliament began on 29 January 2018. The first phase of the budget session of the parliament is being held from 29 January 2018 to 9 February 2018. After a recess, Parliament will meet again from 5 March 2018 to 6 April 2018, as per reports.

The Economic Survey 2017-18 was tabled in Parliament on 29 January 2018. The survey estimated that India's economy should grow between 7% and 7.5% in the 2018/19 (April-March) with exports and private investment set to rebound. The survey estimated that gross domestic product will have grown 6.75% in the current fiscal year ending in March 2018.

Today's Calls:

#Buy Eros Media Ltd at Rs.205, T: Rs.237-251, SL: Rs.197. 

#Buy Suzlon Energy above Rs.14.7, T: Rs.17, SL: Rs.14.2. The government could come up with some incentives for the Wind Energy sector.

#Buy Opto Circuits Ltd at around Rs.11, T: Rs.14, SL: Rs.9.6. The government could give some incentives to the medical equipment makers, in the ensuring budget. The stock is also good on the charts after a long time.

#Those who are still holding the shares of Hindustan Zinc Ltd can look for targets of Rs.221-222. Keep a trailing stop of 2%.

#Those who are holding the shares of HDIL inspite of its fall, can start averaging the same at around Rs.58, for targets of Rs.61-62. The government could give some relief to the REAL ESTATE sector, in the upcoming budget. 

#Buy Cadila Healthcare at around Rs.426,  T: Rs.432-435, SL: 421 on T+2 basis. This is a pure chart based call. 

#Those who are holding the shares of Urja Global Ltd (Rs.9.35 in the NSE and Rs.9.99 in the BSE), should look to exit the counter, before it starts hitting the lower circuits. The stock is highly overvalued and the current prices does not justify any valid reasoning.

#Buy Bhusan Steel Ltd at around Rs.52. for a short term target of Rs.66-69. The takeover story by Arcelor Mittal or other steel behemoths is still there.

~~with inputs from Capital Market - Live News

Note: I am not well and have undergone a minor surgery in the left jaw before the RCT. I might need another surgery to fix the problems of the incisors. Pain is there (not excruciating may be because of administration of strong pain killer) in the Left Jaw, but the things are looking a little better now. Hope the ordeal will soon be over and I will be back to my normal self again. My health conditions have taken a severe beating since the last few months. I have recovered from Malaria only a month back and now this issue is another bolt from blue.

Hence, the updates on this blog might get affected, till I fully recover from the cascading effects of multiple negative health problems governing my life cycle and also due to pile of work in my other verticals, which remained unfinished due to the same reason. 

Meanwhile, play light before the budget and use stop  losses in case the market does not recover, even after the budget.