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T I M E S
A TIME COMMUNICATIONS PUBLICATION
VOL XXVII No.16 Monday, 19 – 25 February 2018 Pgs.22 Rs.20
PNB scam sends shivers down Now follow us on Instagram, Facebook &
Twitter at moneytimes_1991 on a daily basis to
D-Street get a view of the stock market and the
By Sanjay R. Bhatia happenings which many may not be aware of.
The positive beginning to the week was short-lived as the PNB scam came to limelight. A fresh round of selling pressure
was witnessed as the benchmark indices especially Bank Nifty fell sharply. The markets failed to offer any resilience due
to lack of buying support. Even positive global cues and positive domestic inflation numbers failed to boost the market
sentiment.
The FIIs remained net sellers in the cash segment but were seen hedging their short-positions by remaining net buyers
in the derivatives segment. The breadth of the market remained weak amidst high volumes, which is a negative sign. The
US markets moved higher on the back of good economic numbers. Crude oil prices moved higher trading between $61-
64 after last week’s carnage when the dollar neared a three-year low. On the domestic side, the earnings season
remained a mixed bag.
Technically, the prevailing negative technical conditions
weighed on the market sentiment leading to selling pressure.
Believe it or not!
Dynemic Products recommended at
The Stochastic, KST and RSI are all placed below their respective Rs.199.80 in TT last week, zoomed to
averages on the daily and weekly charts. Further, the MACD is Rs.226.95 fetching 14% returns in just 1 week!
placed below its average on the daily chart. Moreover, the Nifty Maan Aluminium recommended at Rs.151.25
is placed below its 50-day SMA. These negative technical in TT last week, zoomed to Rs.168 fetching
conditions could lead to intermediate bouts of selling pressure. 11% returns in just 1 week!
The prevailing positive technical conditions, however, still hold IOL Chemicals & Pharmaceuticals
good. The MACD is placed above its average on the weekly chart. recommended at Rs.73.70 in TT on 5 February
Moreover, the Nifty is placed above its 100-day SMA and 200- 2018, zoomed to Rs.93.45 fetching 27%
day SMA. The Nifty’s 50-day SMA is placed above its 100-day returns in just 2 weeks!
and 200-day SMA, its 100-day SMA is placed above its 200-day Autoline Industries recommended at
SMA indicating a ‘golden cross’ breakout. These positive Rs.84.70 in SA on 5 February 2018, zoomed to
technical conditions could lead to buying support at lower Rs.101.90 fetching 20% returns in just 2
levels. weeks!
The –DI line is placed above the +DI line and is placed above the Mirc Electronics recommended at Rs.51.05 in
31 level. But it has come off its recent highs, which indicates that BE on 5 February 2018, zoomed to Rs.58.55
the sellers are covering shorts regularly. However, the ADX line fetching 15% returns in just 2 weeks!
is placed above 30, which indicates that the sellers have an (BE – Bull’s Eye; SA – Stock Analysis; TT – Tower Talk)
upper hand. The market sentiment remains weak and nervous.
The fresh Nirav Modi led PNB scam has kept the market
This happens only in Money Times!
sentiment subdued reminding everyone of similar scams earlier. Now in its 27th Year
BAZAR.COM
Unpardonable plunder!
History in its annals has many names of foreign rulers who came to India to plunder its immense wealth and rich
culture. Well, that was in the medieval and ancient era. Today, we have plunders from our country aided by the system.
The banks and securities market remain the soft targets for such plunders and scams. Non-performing assets (NPAs)
more often than not remain the most sophisticated way of looting the banks of the depositors’ hard-earned money. The
scam amounts remain an integral part of such NPAs. Hardly had the issue of NPAs settled with FM’s recapitalization
plan, there came in a $1.77 bn fraud at Punjab
National Bank (PNB). A thunderbolt of its kind Winners 2018 begin to perform…
this was!
By all means this Rs.11300 crore PNB scam was 8th week score
the biggest to hit any bank in the country.
History could talk of the Rs.4900 crore Harshad Of the 32 stocks, 22 stocks tested CP providing opportunity to enter at
Mehta scam during 1992 or CRB Finance’s Rs.57 lower levels. Thereafter, 11 stocks were trading in profit at 15.20 pm
crore scam in 1996 or Home Trade’s Rs.600 on 16/02/2018.
crore scam or Ketan Parekh’s Rs.1200 crore Of the 32 stocks, 2 stocks tested L2 providing opportunity to enter at
scam in 2001 and Bank of Baroda’s fraudulent lower levels. Thereafter, both the stocks were trading in profit at 15.20
export bill discounting of Rs.350 crore in 2015. pm on 16/02/2018 with gains of 11.39% and 16.23%.
Today, PNB faces a contingent liability in respect
of Letters of Undertaking (LOUs) that have been Of the 32 stocks, 7 stocks tested L3. Profit-booking level gains on L3
fraudulently issued to Nirav Modi (NiMo) and are: 11.06%, 16.56%, 25.25%, 42.42%, 16.95% and 30.18%.
Mehul Choksi group. The bank wrote letters to
all major lenders on Wednesday informing them Of the 32 stocks, all the stocks were gainers during the Jan-Feb period
of the fraud. Banks that have lent on the basis of at some point and we still have 10 months to go.
the LOUs issued by PNB have an exposure close
to Rs.11000 crore. LOU is like a bank guarantee The market is currently in a crash mode thereby allowing opportunity
that undertakes to pay lenders if the borrowers to enter at CP and L2.
default.
Currently, we have 7 gainers.
Initial investigations indicate that Allahabad
Bank, Axis Bank and UBI had funded close to Get Yearly and Quarterly Levels for accumulation and an update on
Rs.7000 crore on the back of such LOUs. It is also Quarterly levels every quarter.
believed that a major chunk of the loans were
sold down. State Bank of India and Bank of There are 44 more weeks to go!
Mauritius have secondary exposure. Bank For details of Winners 2018, please refer to ad on page no.5
sources in their initial workout fear this scam to
TRADING ON TECHNICALS
Weekly Up
Scrip Last Level Level Center Level Level Relative
Reversal Trend
Close 1 2 Point 3 4 Strength
Value Date
Weak Demand Demand Supply Supply
below point point point point
JSW STEEL 311.70 305.6 306.4 310.9 316.2 326.1 68.4 302.6 22-12-17
IIFL HOLDINGS 776.40 751.5 752.2 775.6 799.8 847.3 61.7 749.9 15-12-17
GOODYEAR INDIA 1170 1122 1131.7 1160.3 1198.7 1265.7 60.3 1104.3 16-02-18
JMC PROJECTS (INDIA) 595.75 570.9 572.8 593.9 616.9 661 58.7 571.8 09-02-18
GUJARAT ALKALIES &
CHEMICALS 790 745 748.3 786.7 828.3 908.3 57.1 766.3 16-02-18
*Note: Up and Down Trend are based of set of moving averages as reference point to define a trend. Close below
averages is defined as down trend. Close above averages is defined as up trend. Volatility (Up/Down) within Down
Trend can happen/ Volatility (Up/Down) within Up Trend can happen. Relative Strength (RS) is statistical
indicator. Weekly Reversal is the value of the average.
Weekly Down
Scrip Last Level Level Center Level Level Relative
Reversal Trend
Close 1 2 Point 3 4 Strength
Value Date
Demand Demand Supply Supply Strong
point point point point above
ALLAHABAD BANK 54.75 42.9 51.4 56.5 59.8 61.6 27.30 61.64 29-12-17
BANK OF MAHARASHTRA 18.40 17.1 18.1 18.7 19.1 19.4 27.97 19.30 19-01-18
SYNDICATE BANK 59.65 47.4 56.4 62.2 65.5 68 29.03 67.20 01-12-17
UNITED BANK OF INDIA 14.85 13.7 14.6 15.1 15.4 15.7 29.84 15.86 19-01-18
PUNJAB NATIONAL BANK 125.65 66.4 109.6 136.7 152.8 163.8 30.52 156.22 02-02-18
*Note: Up and Down Trend are based of set of moving averages as reference point to define a trend. Close below
averages is defined as down trend. Close above averages is defined as up trend. Volatility (Up/Down) within Down
Trend can happen/ Volatility (Up/Down) within Up Trend can happen.
BUY LIST
Note: SA-Strong Above, DP-Demand Point, SP- Supply Point, SA- Strong Above
Scrip Last Close Demand point Demand point Demand Point Weak below Supply Point Monthly RS
- - - - - - - -
PUNTER PICKS
Note: Positional trade and exit at stop loss or target whichever is earlier. Not an intra-day trade. A delivery based trade for a possible time frame
of 1-7 trading days. Exit at first target or above.
Note: SA-Strong Above, DP-Demand Point, SP- Supply Point, SA- Strong Above, RS- Strength
Weak RS-
Scrip BSE Code Last Close Demand Point Trigger Supply point Supply point
below Strength
- - - - - - - - -
TOWER TALK
White Organic Agro, the only listed company that caters to all organic activities, reported excellent results with an
EPS of Rs.6 for 9MFY18. The stock is a steal at the current level. Buy and hold for the long-term.
Gujarat State Petronet reported PAT of Rs.181.56 crore in Q3FY18, up from Rs.118.56 crore in Q3FY17. A good
long-term buy.
I G Petrochemicals posted an EPS of Rs.37 for 9MFY18, which suggests that the earnings for FY18 may cross Rs.50.
Considering the industry P/E of ~22.83x, the stock may cross the four-figure mark very soon. Buy immediately.
REC is again in top gear. Good earnings and dividend yield make it a good buy. It paid an interim dividend of Rs.7.40
and a final dividend of Rs.3 is a possibility. Add on every decline.
Prakash Industries has issued convertible warrants of Rs.234 crore to promoters and others to fund its expansion
plans. It is expected to report excellent results going forward. A good buy.
The electrical vehicles push can take Mahindra & Mahindra to greater heights. An excellent long-term buy from the
automobile sector.
GVK Power & Infrastructure plans to raise up to $1 bn via dollar bonds to fund the Mumbai airport project and
refinance its current debt. Reduction in finance cost will boost its earnings. Buy.
Power Grid Corporation of India is expected to grow at 18-20% annually over the next few years. A good long-
term buy.
NBCC (India) plans to subdivide its share to a face value of Re.1. This will improve liquidity. With huge orders in
hand, its future appears bright. Buy.
Amara Raja Batteries reported good results for Q3 with 20% higher PAT on 17% higher sales. A good time to
accumulate this stock.
K. Raheja group company Prism Cement reported PAT of Rs.14.85 crore in Q3FY18 as against a loss of Rs.47.02
crore in Q3FY17. A good buy.
NMDC doles out ~50% of PAT as dividend and is currently sitting on huge cash reserves. Rising iron ore prices and
expectations of a high dividend payout makes it a good investment.
BEST BET
******
Siemens Ltd
(BSE Code: 500550) (CMP: Rs.1264.20) (FV: Rs.2) (TGT: Rs.1500+)
Incorporated in 1867, Mumbai-based Siemens Ltd (a subsidiary of Siemens Aktiengesellschaft) manufactures and sells
electric motors, generators, transformers, electricity distribution and control apparatus, electric signaling, safety or
STOCK BUZZ
Stock Buzz
STOCK ANALYSIS
MARKET REVIEW
MARKET OUTLOOK
Sell on rise
By Rohan Nalavade
The market is in a downtrend for the month of February 2018. The Nifty has lost almost 700 points at 10452 from its
high of 11160. Bank Nifty is leading the downtrend as PSU Banks like State Bank of India and Allahabad Bank have
reported disappointing figures for the quarter. Moreover, the Punjab National Bank fraud has sent a bad signal for the
banking sector and spoilt the overall market sentiment.
The Nifty is moving in a range of 10400-600 and is unable Free 2-day trial of Live Market Calls
to sustain at higher levels of 10560-600. Selling pressure is A running commentary of intra-day trading
seen and, therefore, it may be prudent to sell on rise. Avoid recommendations with buy/sell levels, targets, stop loss
buying at the moment or accumulate quality stocks from on your mobile every trading day of the moth along with
Nifty 50 in small quantities at every 3% decline. If the Nifty
pre-market notes via email for Rs.4000 per month.
breaks 10400, it may test 10200-10100 levels. Only a close
Contact Money Times on 022-22616970 or
above 10600 can change the trend to bullish.
moneytimes.support@gmail.com to register for a free trial.
Among stocks,
Sun Pharmaceutical Industries is a ‘sell’ below Rs.577 for a target of Rs.570-565 (SL: Rs.584);
Axis Bank is a ‘sell’ below Rs.540 for a target of Rs.530-520 (SL: Rs.551);
Vedanta is a ‘sell’ below Rs.322 for a target of Rs.315-310-305 (SL: Rs.325).
PRESS RELEASE
EXPERT EYE
By Vihari
TECHNO FUNDA
By Nayan Patel
REVIEW
Dynamic Industries Ltd Sadhana Nitrochem recommended at
Rs.70 on 4 September 2017, zoomed to
(BSE Code: 524818) (CMP: Rs.96.75) (FV: Rs.10) Rs.218.75 last week appreciating 213% in
We had recommended this stock at Rs.70.85 on 18 September 2017, 5.5 months.
where-after it zoomed to Rs.117.60 in a very short time. We recommend Damodar Industries recommended at
this stock once again based on its excellent Q3 results. Rs.99 on 28 August 2017, zoomed to
Founded in 1989, Dynamic Industries Ltd (DIL) manufactures and sells Rs.157 last week appreciating 59% in 5.5
months.
dyes, chemicals and pigments. It is situated at Gujarat Industrial
Development Corporation (GIDC), Vatva in Ahmedabad. Its product ITL Industries recommended at Rs.45.5 on
palette primarily includes acid, direct and reactive dyes, which are a 14 March 2016, zoomed to Rs.352.15 last
week appreciating 674% within 2 years.
benchmark in quality. It exports to Germany, USA, South Korea, China,
Taiwan, Italy, Turkey, Switzerland, Russia, Pakistan, Spain, Brazil and
Argentina.
With an equity capital of Rs.3.03 crore and reserves Financial Performance: (Rs. in crore)
of Rs.19.20 crore, its share book value works out to Particulars Q3FY18 Q3FY17 9MFY18 9MFY17 FY17
Rs.73.4 and its P/BV ratio stands at 1.32x, which is Sales 13.69 10.20 40.07 34.73 46.26
attractive for this sector. The promoters hold
PBT 1.19 0.52 2.89 1.95 2.56
48.77% of the equity capital, which leaves 51.23%
Tax 0.35 0.17 0.88 0.66 0.78
stake with the investing public. Renowned small-
cap investor Subramanian P. holds 4.68% stake in PAT 0.84 0.35 2.01 1.29 1.78
the company. EPS (in Rs.) 2.77 1.16 6.64 4.25 5.87
During Q3FY18, DIL reported 140% higher PAT at Rs.0.84 crore on 34% higher sales of Rs.13.69 crore fetching an EPS of
Rs.2.77. During 9MFY18, PAT soared 56% to Rs.2.01 crore on 15% higher sales of Rs.40.07 crore fetching an EPS of
Rs.6.64. Its PAT for 9MFY18 was higher than the PAT recorded in FY17 PAT. It paid 10% dividend for FY17.
The stock currently trades at a P/E of 11.73x. Based on its performance parameters, the stock looks quite attractive for
investment at the current level. Investors can buy this stock with a stop loss of Rs.82. On the upper side, it could zoom to
Rs.135-150 levels in the medium-to-long-term.
*******
Rishiroop Ltd
(BSE Code: 526492) (CMP: Rs.128.25) (FV: Rs.10)
Incorporated in 1984, Mumbai-based Rishiroop Ltd manufactures and sells polymer blends for rubber and plastic
industries. It was formed as a result of the merger between Puneet Resins Ltd and Rishiroop Rubber (International) Ltd.
Its polymer blends are used to manufacture petrol hoses, LPG tubing, O-rings, seals and gaskets, printing and textile
rollers, cable sheathing, automotive components, etc. It also trades in synthetic rubber and other complementary
products. It also exports its products.
Rishiroop has an equity capital of Rs.9.7 crore supported by reserves of Rs.46.08 crore. The promoters hold 70.26% of
the equity capital, which leaves 29.74% stake with the investing public.
BULL’S EYE
Disclaimer: Investment recommendations made in Money Times are for information purposes only and derived from sources that are deemed to
be reliable but their accuracy and completeness are not guaranteed. Money Times or the analyst/writer does not accept any lia bility for the use of
this column for the buying or selling of securities. Readers of this column who buy or sell securities based on the information in this column are
solely responsible for their actions. The author, his company or his acquaintances may/may not have positions in the above mentioned scrip.
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