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On Slack: Coffee Day IPO, Blood Bath in Markets, Tata Investment in Uber and More…

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The Slack Discussions

The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there, pop us a note by replying to this email. (If you’re a trial member this probably sound like Greek to you; it will be available when you sign up!)

Awesome discussions again!

A brief summary of some of the interesting things discussed there in the last few days:

SEBI gives Coffee Day the Go-Ahead to raise Rs.1,150 crore through initial public offer (IPO)

More Reading:  http://www.livemint.com/Money/dXFUBBapUm7Z3MIK3VNnWK/Coffee-Day-Enterprises-gets-Sebi-nod-for-1150-crore-IPO.html

How to not only Survive and even Prosper from the Coming Collapse:

https://www.youtube.com/watch?v=rkELgi6EkNo&feature=youtu.be

Analysts say as markets are in an uptrend, stocks like Tata Elxsi, Emami, Natco Pharma are qualifying for inclusion in the F&O segment

Read more at: http://economictimes.indiatimes.com/articleshow/48536124.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Discussion on Coal Prices: India’s Cheaper

• Vinayak landed cost including Transportation Taxes et AL for 4000 kcal coal is around 2 per kg. FOB price for imported coal is 3 per kg and landed cost is around 6 per kg. E-auction coal price of CIL is  2-2.5 per kg . And landed cost could be ~4-4.5 per kg

• On a cost per unit basis, imported is still twice the cost per unit even after price fall compared to long term tied-up coal. And e-auction coal is little less than twice the cost per unit.

Options Updates:

INFY ADR, multiple tops at 18.2

infy

HUL fut, 15 mins chart

ADR

• HUL future chart is showing bottoming pattern at lower level

• Bulls will say, it has formed a base.

DVR 250 CE…Stuck in Range; Needs to cross 6-6.5

DVR

HDFC options? They seem to have a PCR of 0.29 for 1300.

HDFC

• Note: One of the trades we saw through this process was writing the 1300 call, which went from Rs. 10.8 to Rs. 2.5 in two days.

• The idea is to find a weak stock and a strike price where the PCR is very low and write call options,

• The inverse could be a strong stock and a lower strike where the PCR is very high

Sun Pharma Gets US Regulator’s Approval for Acne Drug

http://profit.ndtv.com/news/pharma/article-sun-pharma-gets-us-regulators-approval-for-acne-drug-1209034

Lupin breaking out of APF

Lupin

Tata Opportunities Fund invests in Uber for services expansion

http://www.medianama.com/2015/08/223-tata-opportunities-fund-uber-funding/

http://www.ft.com/cms/s/0/e36e64d8-4657-11e5-b3b2-1672f710807b.html

http://inc42.com/flash-feed/tata-opportunities-fund-invests-in-uber/

 

The Reserve Bank of India today gave an in-principle nod to 11 entities for setting up payments banks

More Reading: http://www.medianama.com/2015/08/223-payments-banks-vijay-shekhar-sharma-airtel-ril-vodafone-fino-among-11-to-get-rbi-approval/

Here is the expert opinion from Deepak Shenoy : https://www.capitalmind.in/2015/08/new-payment-bank-licenses-are-finally-here-heres-what-they-can-do/

Kishore Biyani’s Future Group to manage overall public distribution system and ration shops in Rajasthan

http://economictimes.indiatimes.com/industry/services/retail/kishore-biyanis-future-group-to-manage-overall-public-distribution-system-and-ration-shops-in-rajasthan/articleshow/48549205.cms?from=mdr&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Q&A on the relation between Money Flow and Interest Rates

Q (@ritesh): why ‘money is chasing lower interest rates now a days?

A (@deepakshenoy): Why does one think that if our rates fall, our currency will too? Answer: because foreign investors in debt will take out their money and put it at places with higher rates. Firstly this is crazy because foreign investment in Indian debt is TINY compared to the amount invested in equity. Secondly, there’s hardly any place left with higher rates (except russia and brazil)

Deepak Shenoy[10:23 AM]But if rates fall, equities will do well. Foreign investors have lots of money in equity and can bring in more if they think equity will do well. Therefore, money will chase the lower interest rates.

And while this happened, we get a peek into the Federal Reserve minutes of meeting

http://www.irishtimes.com/business/economy/fed-edges-closer-to-a-us-interest-rate-hike-july-minutes-reveal-1.2322315

http://www.cnbc.com/2015/08/19/fed-approaching-hike-conditions-minutes.html

Blast from the Past: Sharp rise and fall in share price of Kwality Dairy India ; Brokers see foul play

http://articles.economictimes.indiatimes.com/2011-12-22/news/30546665_1_brokers-share-price-stock-price

https://forum.valuepickr.com/t/kwality-ltd-kwality-stock/967/7 

India Yet to clear dues on Oil to Iran

http://www.mydigitalfc.com/news/iran-asks-india-clear-65b-oil-dues-2-months-641

http://timesofindia.indiatimes.com/business/international-business/Iran-asks-India-to-clear-6-5bn-oil-dues-in-60-days/articleshow/48557498.cms?

South Korea and North Korea exchanged fires which resulted in a blood bath on Sensex & Nifty

http://edition.cnn.com/2015/08/20/asia/koreas-tensions/index.html?sr=cnnitw

Note: Nice reason, but we don’t think that was it.

Investors hustle away from risk. Surge in cash since early July similar other “risk-off” spasms of the past 5 years.

https://twitter.com/michaelsantoli/status/634307088571834368

Good sowing, but only marginally higher than last year 

Kharif sowing completed in 89% area so far

Highest Earning Hedge Fund Managers

fund managers

That Blast in China Also Hits Tata Motors – 5800 cars were in the Port

http://economictimes.indiatimes.com/industry/auto/news/passenger-vehicle/cars/tata-motors-5800-jlr-cars-at-china-port-hit-by-blasts/articleshow/48582647.cms

IOC: The Government will sell 10% stake on Monday, for Rs. 9,500 cr. 

http://timesofindia.indiatimes.com/business/india-business/Govt-to-sell-10-stake-in-Indian-Oil-Corporation-on-Monday/articleshow/48584756.cms

• 9,500 cr. is a LOT of money for a day – expect LIC to kick in?

• In world bloodbath times, this is going to be another squeeze.

Here is how the blood bath on Dalal Street ended on Friday

Sensex -241.75 (0.88%)

Sensex

Nifty -72.80 (0.87%)

Nifty

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Disclaimer

Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion. 

Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.

 

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