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)
• 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.
INFY ADR, multiple tops at 18.2
HUL fut, 15 mins chart
• 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
HDFC options? They seem to have a PCR of 0.29 for 1300.
• 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
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
• 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%)
Nifty -72.80 (0.87%)
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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.