PICK OF THE DAY 9-6-16

09-Jun-2016

PICK OF THE DAY	TARGET 1	TARGET 2	STOP LOSS
BUY UJJIVAN AT 360	375	385	353
FUTURES
BUY AMBUJACEM FUT AT 238	244	248	236

OUTLOOK FOR 8-6-16

TECHNICAL OUTLOOK

SCRIP	CLOSE	SUPPORT	RESISTANCE	OUTLOOK
NIFTY	8266.45	8220 8160 8080	8335 8401 8470	RESISTANCE AT 8335
BANK NIFTY	17948.15	17770 17335 17170	18188 18415 18760	SUPPORT AT 17770.
ITC	362.75	359 353 349	366 370 375	MILDLY BULLISH.
REL INFRA	530.65	513 505 496	539 553 565	SELL ON RALLY.
VEDL	110.05	107 103 101	113 115 118	SELL ON RALLY.
TCS	2631.15	2589 2555 2519	2660 2690 2727	MILDLY BULLISH.
SAIL	41.90	41 38 37	43 45 46	SELL ON RALLY.
SBI	210.15	207 203 198	215 220 224	MILDLY BULLISH.
DLF	135.30	131 129 124	138 141 145	SELL ON RALLY.
INFOSYS	1257.40	1222 1203 1168	1282 1313 1350	SELL ON RALLY.
TATA MOTORS	463.05	455 449 439	471 483 497	MILDLY BULLISH.
BHEL	119.30	116 114 109	122 125 129	SELL ON RALLY.
TATA STEEL	342.60	326 316 307	347 354 366	SELL ON RALLY.
WOCKPHARMA	930.75	905 887 858	945 969 982	SELL ON RALLY.
ONGC	212.95	204 200 196	219 223 229	SELL ON RALLY.
ICICIBANK	254.10	251 247 242	259 264 272	MILDLY BULLISH.
RELCAPITAL	411.25	400 389 381	421 433 441	SELL ON RALLY.
RELIANCE	955.05	933 919 905	971 988 1001	SELL ON RALLY.
HDIL	97.90	96 94 91	100 103 106	SELL ON RALLY.
MARUTI	4135.65	4119 4073 4040	4175 4210 4258	SELL ON RALLY.
HINDALCO	109.50	107 104 102	111 115 119	MILDLY BULLISH.
ACC	1540.45	1509 1489 1436	1577 1600 1637	MILDLY BULLISH.
LT	1487.90	1444 1395 1378	1505 1541 1588	MILDLY BULLISH.

PICK OF THE DAY 8-6-16

08-Jun-2016

PICK OF THE DAY	TARGET 1	TARGET 2	STOP LOSS
BUY AEGIS LOGISTICS AT 121	128	132	118
FUTURES
BUY BEL FUT AT 1220	1250	1270	1209

Market Review for 7th June 2016

Nifty (8201) we said “8300 would be next technical target if the up move continues as technically the trend is still intact but I would not be surprised is some profit booking comes in but however the crucial support to watch is 8100’ the market saw some profit booking in the upper region and has so far closed marginally in the red but technically the trend is still intact up though we are at very crucial make or break levels of 8243…crucial support is at 8100…

The support for the Nifty is at 8134-8100 and the resistance is at 8243-8300

10 Favorite Quotes from Reminiscences of a Stock Operator

• There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.
• The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among professionals.
• I never lose my temper over the stock market. I never argue the tape. Getting sore at the market doesn’t get you anywhere.
• They say you can never go poor taking profits. No, you don’t. But neither do you grow rich taking a four-point profit in a bull market. Where I should have made twenty thousand I made two thousand. That was what my conservatism did for me.
• Remember that stocks are never too high for you to begin buying or too low to begin selling.
• A man may see straight and clearly and yet become impatient or doubtful when the market takes its time about doing as he figured it must do. That is why so many men in Wall Street…nevertheless lose money. The market does not beat them. They beat themselves, because though they have brains they cannot sit tight.
• After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was the sitting. Got that? My sitting tight!
• Losing money is the least of my troubles. A loss never bothers me after I take it…But being wrong—not taking the loss—that is what does the damage to the pocketbook and to the soul.
• Prices, like everything else, move along the line of least resistance. They will do whatever comes easiest.
• The speculator’s chief enemies are always boring from within. It is inseparable from human nature to hope and to fear. In speculation when the market goes against you hope that every day will be the last day—and you lose more than you should had you not listened to hope—the same ally that is so potent a success-bringer to empire builders and pioneers, big and little. And when the market goes your way you become fearful that the next day will take away your profit, and you get out—too soon. Fear keeps you from making as much money as you ought to. The successful trader has to fight these two deep-seated instincts…Instead of hoping he must fear; instead of fearing he must hope.

India : Struggling debt recovery tribunals add to stress in banking sector

At a time when India’s state-run banks are reeling under bad debt and trying hard to recover loans, the sorry state of debt recovery tribunals (DRTs)—a body set up for speedy adjudication and recovery of debts due to banks and financial institutions—is adding to the woes.

Nearly two years after finance minister Arun Jaitley promised to open six more DRTs in his maiden budget speech, nothing has changed.

There have been no fresh additions to the 33 DRTs in the country, said two lawyers who handle tribunal-related cases. The additions were supposed to reduce the burden of increasing number of bad debt cases and ensure speedy redressal.

The state of existing DRTs is also a cause of concern, according to the two lawyers.

“The current infrastructure is not sustainable and that needs to be fixed as soon as possible. Papers are still filed manually at these tribunals and many times, case papers disappear during important hearings and the court adjourns the matter, delaying it further,” said one of the two lawyers cited above, on condition of anonymity.

In September, Jaitley had asked the department of financial services under the finance ministry to computerize DRTs on a priority basis. But the proposal seems to have made no headway.

An email sent to the department on Thursday remained unanswered till the time of going to press.

Shortage of sufficiently qualified personnel to deal with complex legal issues of finance in DRTs too is hampering proper disbursal of debt-related cases.

“A lot of times, we have seen that presiding officers have trouble when a high-profile lawyer comes to DRT. The people appointed to these key positions sometimes lack the necessary experience and qualification to hear these cases,” said the second lawyer.

The lawyer, who runs an independent practice, spoke on condition of anonymity.

At the 33 DRTs across the country, 38 positions such as that of presiding officers, registrars, recovery officers and section officers are lying vacant, according to the DRT website.

Also, the appointment process too is not as robust as that for higher courts in India and pay is relatively meagre.

“Higher courts have examinations and interviews to appoint people to important positions and that’s why talented people come up and get jobs. But at tribunals, the process is voluntary, and frankly, the compensation is pretty small. This affects interest among those who are qualified, which is why they have to depend on some mid- or junior-level bankers who are deputed to these positions,” said the second lawyer cited above.

According to a vacancy circular dated 21 August last year posted on the DRT website, the average pay band for a section officer of the DRT ranged between Rs.9,300 andRs.34,800 with a grade pay of Rs.4,600. It is less for more junior positions in the tribunals.

DRTs are one of the three major legal mechanisms available for banks to deal with errant borrowers. The two others are the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002, and the recently approved bankruptcy law.

DRTs were first set up under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, also known as the DRT Act. Under the existing norms, a DRT is supposed to dispose of a matter referred to it within 180 days of the receipt of an application and an appeal can be filed against a DRT order with the debt recovery appellate tribunals (DRATs).

However, the 180-day deadline is rarely followed by the tribunals and cases are heard for years.

As on 31 December, cases with a total worth of Rs.4.5 trillion were pending before various DRTs compared toRs.3.75 trillion in the previous year, according to a 17 May report in The Financial Express.

Cases with loans worth Rs.31,215 crore were disposed of in the first nine months of financial year 2015-16.

Apart from staffing issues, some DRTs don’t even have permanent offices. In March, the Bombay high court took note of the issue and ordered the finance ministry to provide offices for DRTs in Mumbai after filling the vacancies.

The high court was hearing a petition which said that the chairperson of the Mumbai DRAT went on medical leave in April 2014, forcing the transfer of a case to the Chennai DRAT, thereby causing a lot of trouble for the litigants.

“The main issue is, of course, that there are no people to man the tribunals and secondly, there is a big appeal process in the DRT mechanism, which often leads to no decision. Moreover, the focus is too much on dispensing justice in such cases, while there is barely any commercial focus. Assets lose value over time and if there are delays due to too much focus on justice being delivered, then it impacts the amount of recovery. DRT is a recovery body and that should be its main focus, keeping commercial interests in the front,” said Abizer Diwanji, partner and head-financial services, EY.

With the rising burden of bad loans at banks, it would be crucial for the government to set up DRTs with all necessary infrastructure, while empowering them with qualified people.

As of March 2016, gross non-performing assets (NPAs) of 40 listed banks were at Rs.5.82 trillion, up 93% fromRs.3.02 trillion in the same period a year ago. Net NPA stood at Rs.3.39 trillion, more than double the Rs.1.68 trillion a year ago.

Date: 06 June 2016

Every Decline to buy side Likely Test Nifty 9000 + in 2016
Script Name		Trend	Closing price		Recommendations
Nifty Spot		UP	8220		Buy and Buy
Nifty Future		Up	8238		Decline to buy
Bank -Future		Up	534		Buy on decline for 18000
Axis Bank		Up	544		Trend Decider 534
ICICI Bank		Up	240		Buy for target
Yes Bank		Up	1053		Above 1000 looks good
SBI		Up	196		Above 195 looks good and target
BOB		Down	144		Buy on decline stop loss..................
Reliance		Up	965		Ready to blast
LT		Up	1472		Above 1500 looks hot
Tata Steel		Up	339		Decline to buy around 335 +
Telco		Up	456		Buy and forgot for 500
HDFC		Up	1260		Buy on decline
LIC Housing		Up	477		Ready to test 500 510
Can Bank		Up	185		Some weakness
HPCL		Up	938		Now ready to move
Lupin		Down	1460		Time to avoid pharma counter
Sun Pharma		Down	742		Time to avoid pharma counter
Rel Capital		Up	404		Break out stocks
Bharti Tele		Up	357		Decent support 350
TCS		Up	2623		Above 2670 sharp move
DLF		Up	133		Buy and decline for big move
Voltas		Up	337		Higher level cautious approach