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On Slack: Swing Trader, Sanjiv Kapoor, Taxation reforms, Essel Group, CCD listing 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!)

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

#fixed-income: Are debt funds getting riskier?

Investors in equity mutual funds are used to being told that these schemes are risky in nature and long-term investment is the best way to mitigate this and earn reasonable returns. In stark contrast, debt fund investors are more or less assured of their returns. And, since these returns, though higher than from fixed deposits, are not spectacular, most feel they aren’t putting money in risky instruments. (Link)

#options: 10 Price Action Tips That Will Make You a Better Swing Trader

What is price action? – Price action for swing traders is the art of looking at individual candles to determine the probable direction of a stock – without using any technical indicators.

Ultimately, analyzing price action tells you who is in control of a stock. It also tells you who is losing control: the buyers or the sellers. Once you are able to determine this, you can pinpoint reversals in a stock and make money. (Link)

#general: Sanjiv Kapoor steps down as SpiceJet’s COO; set to join Vistara

Sanjiv Kapoor has stepped down as chief operating officer at Spice-Jet, bringing to an end a seesaw two-year tenure marked by the low-cost airline’s string of financial losses, near closure, changed ownership and eventual return to profitability. (Link)

#general: Taxation reforms: CBDT to hire a private consultant for recast

In a first, India’s apex direct taxes body is looking to hire an outside consultant to get its house in order, setting the stage for big-ticket taxation reforms and changes in the way the department functions.The consultant would advise the Central Board of Direct Taxes on restructuring, bringing in an outsider’s perspective to the department that is looking to become more taxpayer friendly. (Link)

#general: Condom shares fall after China abandons one-child policy

Investors on Friday bet on a bump in sales for companies with baby or child-related businesses after China’s Communist leaders announced that all married couples would be allowed to have two children. The economic waves traveled as far afield as New Zealand, where the currency of the dairy exporting country surged. (Link)

#general: The Chinese exchange that lured 220,000 investors may have been a giant Ponzi scheme

Thousands of Chinese investors who have sunk an estimated $6 billion into Fanya Metal Exchange are trying to get their money back through public protests and even, at one point, kidnapping the exchange’s founder and turning him in to the police. The government has mostly ignored their plight, despite the fact that China’s state banks recommended Fanya to customers, its national television stations tacitly endorsed the exchange, and local regulators approved it. (Link)

#general: Essel Group’s Subhash Chandra handing over reins to kin

In what appears to be a gradual strengthening of the role of family members in the $3-billion Essel Group, it has been announced Amit Goenka, the son of Chairman Subhash Chandra, has been appointed chief executive officer (CEO) of the international broadcasting business of Zee Entertainment. Chandra’s younger brother, Jawahar Goel, has been elevated from the post of managing director of Dish TV to that of chairman. (Link)

#general: Recommended videos from Premium Users

Nobody cares about you : George Carlin – (Link)

Network (1976) – Ned Beatty – The World is a Business : (Link)

Option Greeks | Gamma : (Link)

#macronomics: Take it easy – Economies are too weak for normal monetary policy to resume

THIS was supposed to be the year when monetary policy started to get back to normal. Seven years after Lehman Brothers collapsed, central banks were expected to edge away from a policy of near-zero interest rates. But now, with the year almost over, the Federal Reserve has yet to push up rates while other rich-world central banks are focused more on easing than on tightening. (Link)

#general: India Hedge Funds Best Global Performers This Year (Link)


#stocks: Quess’s IPO hits road block due to differences of opinion between Prem Watsa’s India team & promoters

Business services group Quess Corp’s proposed initial public offering has hit a roadblock with apparent differences of opinion between Canadian billionaire Prem Watsa’s India team, and the original promoters of the Bengaluru-based company. (Link)

#stocks: Niece drags Baba Kalyani, family to court over wealth; claims one-ninth of the estate as her share

The Kalyani family from Pune that owns the eponymous business group has been dragged to court by the young niece of the patriarch Baba Kalyani, the chairman of the group’s flagship Bharat Forge, demanding her share of ancestral wealth, including stakes in listed companies.(Link)

#stocks: ITC announces retirement of two top execs: Sanjiv Puri frontrunner to succeed Y C Deveshwar

ITC Ltd announced the retirement of two top executives on Friday, pitchforking Sanjiv Puri, the cigarettes and FMCG business head, as the front runner to succeed long serving chairman Y C Deveshwar who is scheduled to hang up his boots in 2017. (Link)

#stocks: How Indigo’s Rakesh Gangwal Became The King Of The Blue Skies

Gangwal’s shrewd dealmaking and frugal innovation have propelled the budget airline to the top, culminating in a highly successful IPO. (Link)

#stocks: Eros – A Vicious Takedown by a Professional Scam Artist Or the New Enron?

(Link1) (Link2)

#stocks: Lesson from Cafe Coffee Day listing: Mandatory safety net for investors brooks no delay

The recent IPO of Cafe Coffee Day (CCD) has not been able to break the jinx — listing losses, i.e. the scrip being traded in the bourses at a discount to the IPO price.

CCD IPO price was Rs 328 but it had takers at only Rs 313 which is quite ominous for the retail investors. The years 2011 and 2012 marked a new low insofar as IPOs in India were concerned what with 80% of the issues condemned to a listing loss. (Link)

#general: FTIL, MOCBPL files defamation cases against activist Ketan Shah

Financial Technologies, holding company of controversial entrepreneur Jignesh Shah, and Mumbai-based brokerage house Motilal Oswal Commodities Broker have filed defamation cases against NSEL Investors’ Action Group founder Ketan Shah.

Both Financial Technologies (FTIL) and Motilal Oswal Commodities Broker (MOCBPL) last week filed separate petitions, accusing Ketan Shah, a self-styled activist investor, of wrongfully and incorrectly posting false and misleading information on social media network. (Link)

#start-up news:

TinyOwl to lay off another 100 staff as it scales back from four cities (Link)

Employee frauds surge as ecommerce companies take to speed-hiring (Link)

Pickingo can’t deliver food for now as deal with Zomato failed to take off (Link)



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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