Reliance Capital: A strong stock today.

Reliance Capital has become one of the best stocks today after its Q4 results. It has posted 2 continuous quarters of above 200% growth in its earnings, which has enabled the stock to rank at 92%, which means that this stocks is 92% ahead of other stocks listed in our tracking Index. On the technical side this stock took a beating since March this year, has formed a good bullish divergence on the daily charts. It is about to give a trend reversal long trade on further strength in price. The current price relative strength rank of the stock is at 25.32, which is not good, but a good earnings growth gives an added advantage for the stock to be a out performer in the markets during the next rally.

Add this stock to your watch list to trade on the daily charts for a high probability trend following long trade.

Team BraViSa.

Some Gems in the Squalor Bins.

Tight range continues on the broad indices, expiry day saw some volume moving up, but not anything to talk more about. If there is going to be any rally from here, it will fall short of next resistance. New high new low index today has gone in favor of bears. Anything that goes without decision ends in despair and so is the markets these days. 

There are few GEMS even in this rubble of sideways consolidation. Today, we will talk about INDIA CEMENTS, after its Q4 results. This stock has been in the EPS Top ranks for quite a few months now. It has also given a great opportunity to traders, to capitalize on the Cement Industry leadership in the markets, in the last quarter. Almost every Cement stock was up and running, now as the monsoon approaches Cements take a back seat. 

INDIA CEMENTS, Q4 was again worth writing, it has achieved 11.83 % sales Growth and 17.41% EPS growth in comparison with the same quarter of the previous year. A high growth in EPS means the company is adding more value to its products. This is a great plus to any stock. Rankings are 92.98 on Earnings, 91.20 on Sales & Net Profit Growth while its Price relative strength has come down to 52.82. This means opportunity, we have to keep this stock in our watch list for a trend reversal or a resistance break to trade long.

Mutual Funds have been big buyers on this stock, in the last 2 months they have accumulated above 46 lakh shares. And the Industry group ranking of Cement Industry now is A-, which indicates that the industry occupies the top 20% slot in ranking tables. These are the Gems that you need to identify and wait for them to give an opportunity to get long, it will be a sweet walk to the Bank, laughing loud. To 'Make a Living Trading Stocks' we get you such super performing stocks which will almost always give above 20% returns in each before they get their exits. 

In the last quarter, INDIACEMENTS gave a Rs. 30 gain on 73.50 Investment per stock, it is above 40% in 80 days, isn't it just great? We shall wait for such beautiful runs and take the opportunity when it is presented. Take this stock to your watch list and track it regularly. BTT will track on its own way and report the opportunity right before it happens.

Happy Trading from Team BraViSa.

Was Q4 of TCS worth the 12% run up?

A 30% increase in Sales and 19% increase in EPS in comparison with same quarter of the previous year for TCS, was not sufficient enough to get it a better ranking on its EPS growth. Ranking slipped from 86 to 76, taking the stock off the top performers list. The stock has made a 12% increase in price today, being the top most gainer in our BTT Index stocks. Why & what does this indicate? Market was expecting a very poor result and had gone short heavily on the stock, when the company announced a marginally better result than expectations and also gave a pretty good guidance, shorts had to be covered in panic, hence the bull run on the stock which has registered a 488% gain on volume today, against its average of 18 lakh shares per day.

The stock fell short of breaking its resistance at 1207 by 2 points and the stock was in sideways range on both the weekly and daily charts for quite some time now. Such great rallies do occur in non-trend areas, but they don't last long. Funds have also been largely on the sell side in the stock. For the month of Jan and Feb, funds have sold 76 lakh shares, while they bought 24 lakh shares, a clear indication that the funds have began to shy away from the stock. 

Though the stock performed better than the IT bell whether INFY in sales, its profit margins show a decline when compared to INFY. But, again INFY has not gained because of its core operations, the gains came from treasury operations. When a company derives its profits from non-core segment, it puts a negative thought on the investors mind. Sustainability is a big question mark when such things happen and the stock got rewarded well for its side stepping attitude. Comparatively TCS is a better stock to INFY, but, not the superior one for the moment.

Like the other sectors, where mid caps have become stronger, even in the Tech space, mid caps have began to out shine the front line stocks. MIDTREE was an example of superior performance and the stock got priced aptly for the richness it showed in performance. Surely TCS or INFY for that matter, are not growth stocks which long term investors would look to invest in, at the moment. TCS's performance on the market gave a fillip to yet another IT behemoth, WIPRO with a near 20 point gain on its stock price. Among the three top IT players, only WIPRO is now holding on to its trendiness on the weekly charts. Technically WIPRO does show strength, but fundamentally it is more weaker than the other two. Market is just tagging the stock along with TCS on expectations that it will also out perform on its Q4 results. What is in store has to be seen as days pass by?

Invest in the best performing stocks that have consistent growth in their earnings as well as price strength to earn a good return from the market. If we go sentimental or emotional in our stock picks, loss is the reward. If we invest in the best stocks on a regular basis, the possibility of 'Making a Living from Trading Stocks' will become a easy reality.

Stunning Q4 results form MINDTREE.

Mindtree Ltd, has given one of the best results of this season. A 35.40% sales growth, 114.90% profit growth and 115.85% EPS growth in comparison to the same quarter of the previous year. This is by far one of the best results at times of pressure build up in the economy. MINDTREE has gained an EPS rank of 89.43 which means that, 89% of companies tracked in our BTT index are performing lower than MINDTREE in EPS growth. Top 20% of the companies that have a good performance growth record always rule the markets and so, is this stock now. It's Price Relative Strength ranking is 94.33, which puts this stock on the top 10% list.

This stock has been a regular in our Ready To Take off Listing as, the stock has been traversing new high's regularly. Traders can place this stock on their watch list for a consolidation and break out of pivot to go long for a good profit potential. This stock also lists in our Big Money Channel selection, which means the stock is attracting good volumes too.

As every result season begins, it bring new opportunities in the market with the best performing stocks list getting replaced with new entrants, while the existing ones almost always get out with their level of profit booking as they breach supports. Trading opportunities in the best performing stocks always gives us an edge and provides us the opportunity to outperform the broader markets.

What to do with Infosys?

Infosys reported 22.72% down in sales growth on its fourth quarter, and a 59% increase in its earnings, while its net profit was at 33.72%. When sales is down and earnings is higher, this posts a glare picture that the company is not profiting from its operations and rather is using other methods to shore up bottom line. This is not healthy for the company which once was the darling of the technology line or order. 

The EPS ranking for the stock is at 70.67 which means there are about 30% of the companies from the list of 864 stocks tracked in our BTT index that have better earnings growth that Infosys. If you want to have world class earnings on your investments, you would be with the stocks that have top class earnings and not the mediocre stocks. In that manner Infosys is a clear no no in any serious investors portfolio. 

Mutual Funds have mopped up above 7 lakh shares of this stock while selling about 1.76 lakh shares, does this mean that the informed lot is doing a mistake in holding this stock. At times even the best of fund managers make mistakes, that is the investment game. But soon they will realize their mistakes and off load the stock. The MF figures that we are talking about is of Feb'12, while we can see on the price front the stock has tanked and is reaching for lower lows. Bear have a clear hug on this stock. Indicators are favoring bear strength, so, do not get emotional or sentimental to hold this stock because it is the top market cap leader of for that matter even the best tech company. It was once so, but not now.

As fourth quarter results start flowing in, ranking orders will change dramatically and give us a clear picture of which stock is the leader. Waiting in patience to get hold of those stocks will give decent return on investments. Trading or investing is not a day to day affair, we need to be cautious, wait for the right opportunity and grab the bucks when they are put before us. 

Keep a close watch on our columns and track the recommendations in our bttcalls.com section to find the best stocks to trade and make profit from. TATAMOTORS one of our trending calls which got its entry at 272 after a big run up has mopped up more that 10% in gains within a week after its entry. If you have to make money in stocks follow the leaders not the laggards.

BTT opinion: If you are holding Infy in your portfolio it is time to think of an exit and place the same funds in some high growth stocks. At the end of the it is money that counts, not sentiments. Later when the stock completes its bear phase and is ready for a bull run we will sure get an opportunity to enter and profit from this stock, in case if there is a chance to do so.

Team BraViSa.

Amara Raja Bat enters top ranking.

Q3 results have brought Amara Raja Batteries to the big league. An EPS growth of 66.36% against its same quarter of the previous year and the TTM EPS growth of near 37.81% year-on-year has given the stock an EPS rank of 81.37 among our BTT's tracking index stocks. This means a good 81% of stocks from our list have their earnings performance below Amara Raja. A stock moving up into the 80-100 band of ranking brings it into the top slot of market leaders by performance.

The stock belonging to the Auto Ancillary Industry group which ranks 70th among the 134 industry groups that are tracked in our ranking tables. This industry index has grown above 25% since the beginning of this calender year closely following the broad market averages with superior gains. Among the 32 stocks that comprise this index, many stocks have their rankings in the 80-100 range and have given good returns to investors since January 2012.

Amara Raja Batteries has closed Q3'2011 with a sales of 618.36 crores growing at 44.09% against its same quarter of the previous year. Profit margins at 10.75% has grown 15.37%. This stock had a steady increase in its rankings since 5 quarters and has moved into the big league now.

Price Relative Strength ranking for the stock is at 97.40 at the time of this writing. The stock has managed to achieve this high ranking due to its tremendous bullish move since 31st Jan'12. The stock has made its presence in the new highs list for quite some days now with its continuous up moves which also included high above average volumes. This week the stock will be closing with a weekly volume average above 250%, which is an amazing increase adding more conformity that the prevailing trend is likely to continue.

Investors can add this stock to their watch list to trade long after a basing and breach of resistance which at present is at 299.15.

Please feel free to write to success@bravisatempletree.com for any clarifications on the rankings and money management rules of the stock trading universe.

Why has Hindustan Unilever turned down in price?

Few days before result announcement, HUL picked up fancy and the media was abuzz with more expectations from this company in its 3^rd quarter results. As its parent company gave hints of the Indian arm posting double digit growth, expectations flew high from the considerable 8.5 % increase which the market was in expectation till then.  In expectation the stock priced soared and as soon as the result was announced as the reality got revealed.

Yet the stock held on to its previous lows at 374 levels giving a higher base formation. The stock is trending bullish on the weekly chart with high strength on its indicators. Whereas, the daily chart is non-trending since 7^th Jan’12. We have been running long position on the pullback with stop at 365.15, which the stock has managed to hold and the position has got a good add on too.

Now let’s go into the fundamentals and see what is in store for this stock. Dec’11 results saw sales increase at 15.79%, EPS growth of 19.46%, TTM EPS growing at about 20% year-on-year. The EPS rank of the stock is at 64.41, which shows that there are about 35.59% of companies in our ranking list are better than HUL in earnings growth. An EPS rank below 80 is not considered as a strong stock. The Price Relative Strength ranking for the stock is at 91.70 which are very good for the stock. Sales & Net Profit ranking is at 58.72, which is again a setback. HUL belongs to the Personal Care Industry group which has a ‘A’ rating in our Industry Group rankings. This puts the Industry at the 87 – 93% slab, which indicates that the Industry is very strong both in its price relative strength and EPS growth. This gives a clear indication that HUL is not the strongest stock in the Industry group.

HUL’s Mutual Fund holdings rank has a ‘D’ grade; it represents the 20-40% slab. This again indicates that the stock has lost its favor among Fund managers. For the December 2011 data fully available we have 33,82,965 shares on the buy side and 26,99,814 shares on the sell side with 156 funds participating in the stocks transactions for the month of December 2011. Quarterly record of Mutual Fund transactions in the stock are about 1.00 Crore shares on the buy side and above 81.50 Lakh shares on the sell side for the Oct-Dec quarter. Though the buyers are more in the stock, it does not show much strength.

If one of the best stocks of our country is not a favorite among fund managers and is not having a good rank from the Industry group which enjoys high rankings, which are the stocks that are good in this Industry? The top stocks as per current data are Godrej Industries, Godrej Consumer products and Marico have their EPS ranks above 80 and are comparatively very strong than HUL.

On the technical side HUL enjoys strength as the stock is in a bullish trend in the weekly chart. Long trades have already been established, while the stock is holding in the value zone now. There are chances for a move up along with the markets, but the next move up will attract more sellers than buyers in the stock.

Find More about the stock.

Earnings surprises from the markets today.

As many results for the 3^rd Quarter keep rolling out, there are very few numbers from them which have some surprises in them with superior growth percentages. Among the toppers in today’s results are Cholamandalam Investments, Usha Martin, Satyam Computers & Finolex cables. The biggest disappointment is from SPARC, which has reported -507.37% growths on EPS continuing its negative results for the fourth consecutive quarter.

Let’s go into detail of the toppers and look if there are some possible trade opportunities in them.

Colamandalam Investments & Finance: The Company has reported sales of 421.48 Cr which is a neat 59.97% increase to its same quarter of the previous year. EPS 3.40 which is showing a steady rise since 5 quarters now has grown 473.48%, this stupendous growth rate has put this stock into the top league with an EPS raking of 93.59 among the BTT tracking index stocks. EPS ranking of above 80 among our list of stocks means this stock has a potential for a long trade to look for in its charts. Sales and Net profit growth rank is at 94.30 adding to the stocks fundamental strength.

This stock belongs to the Finance – Leasing hire purchase Industry group which has an Industry group ranking of ‘A’, which is in the top 87-93% among our listed industry categories, this is plus to the stock. Fund representation ranking is at ‘C+’, which means the stocks fund holding among the top 53-60% range, this ranking though not so very attractive is expected to increase in the coming months.

Funds buy sell is not very attractive with 5 funds participating in the buy sell activities which are at 117907 shares on the buy side and 130466 on the sell side. Among the biggest buyer is DSP Black Rock Micro Cap Fund and the top holder is Reliance Banking Fund holding 1.19% of the stocks market cap.

Technicals for the stock shows that it has already began attracting investors since December 2011. The daily charts have given a Value long buy at 114.50 and has reached its target at 143.75 within three weeks from entry and is now trending bullish. On the weekly there was a Trend long trade at 145.00 after the prior week had a huge volume jump of 444% in the weekly charts. Current weeks move will take the stock into a non trend zone on the weekly due to the changeover of direction by the EMA’s. Here is an opportunity lying to be taken, the stock will have a pull back since it is non-trending now and that will give a good resistance, which can be used as a pivot to trade long when breached. So, this stock is a candidate to be on our watch list and tracked regularly.

Patience and regular home work pays rich dividends, nothing comes free without efforts. Let’s look for a nice profit opportunity in this stock shortly.

Reports about other stocks will follow in the next posts. Have a nice trading experience, be with it and you love doing it, you get it.

Challenging 3rd Quarterly reports.

Apart from NIIT which gave a triple digit growth in EPS of 575.35%, all the other results that came out in the last few days were subdued. With many stocks registering triple digit and 4 digit negative EPS growth rates like Polaris, Infomedia, Jet Airways, Hindustan Construction etc.,

NIIT, though has the best EPS growth, its sales growth was negative at -7.46% while its profit was at 37.37% increase. This is in one way encouraging that the company has managed to give a robust bottom line growth while the top line actually negative, but not encouraging.

Fund exposure in the stock has seen a steady rise of above 50% when compared to November data, this is encouraging too. Price of the stock is in the bearish trend on the weekly with a good divergence on the histogram forming a resistance at 46.70. On the Daily charts the stock has made a good bullish rally from 37.20, there are possibilities for some more gains in the stock on the daily before any weakness sets in.

WIPRO reporting a negative EPS growth of 13% was a setback to the Technology stocks today, but otherwise too, Technology sector is not the top sector of our markets today. Leadership positions in many industries are shifting positions to give way for smaller stocks which are mostly not so common names for the investor.

So, if you have to trade the best stocks of the industry definitely the prior leaders are not the ones to be bought for capital growth at the moment.

Hero Motors Q3 results

Results coming out of Corporates in the current quarter shows dwindling performance ratios. Not many surprises left to discuss. Though some companies are showing robust gains in the current quarter, their past records do not hold promise, stating that this one time increase in earnings can be a blip and cannot be trusted.

HEROMOTOCORP, announced one of the strong results in the current quarter with a growth of 42,91% on its EPS growth, but sales growth has declined to 16%. Though this is an advantage for the stock as they are reducing costs to boost the bottom line, when compared to previous records the EPS ranking for the stock is at 44.15 at the time of this writing, which means that there are about 55% stocks which are doing better than HEROMOTOCORP.

We would not want a stock that is so low on the EPS rank when compared to the industry. But the chart patterns show a clear bullish divergence on the daily charts which also had a trending buy having shown tremendous growth in the past few days. Friday’s volume was up 99% against it average and the indicators are gaining strength. This stock should see some short term gains towards 2000-2100 zones. Entries have already been in, so do not attempt new entries now.

Mutual fund participation in the stock though saw tremendous increase in the November purchase is showing very much lack luster in the December updates received so far, so fund are either not investing much nor selling in a big  way. This shows that  a wait and watch scenario is seen in this stock.

CMC Q3 Report

CMC ranks 301^st against 869 stocks tracked on the BTT index. Sales has grown 24.41%, profit margins at 12.84%, EPS growth is negative at -58.53%. Though there is sales growth, profits are less and the company is losing on the earnings side. Price has dropped 55% from the high’s at the time of this writing.

The stock belongs to the Computer hardware industry group which has a C- ranking which indicates 60-66% range on the overall Industry ranking, so not a favorable industry at the moment. Mutual fund sponsorship is B+, which again is a negative to the stock, funds are selling and getting out of the stock. Sales and net profit growth rank is 58.28, a poor rating for the stock get into the buy zone.

EPS rank is very low at 20.62 which means close to 80% of the companies in our tracking list are faring better than CMC. The stock saw a 480% volume jump post result announcement; though there was buying power it lacks strength. Technically the stock is in a bearish trend & took a good bullish run after a divergence on the histogram, but failed to gain strength and is languishing at the Sweet zone. Though its histogram is gaining strength any weakness from here will render the stock trendless.