Hello folks! I’m back again to irritate you ( and I intend to do that every week ^_^ ) and today i’ve special homework for you people.
So this week was pretty uneventful. Nifty just consolidated in a small range and filled the gap that was created last week ( which I had mentioned in my previous newsletter).
Well that was pretty much expected because we can’t just keep moving in a straight line, right?
Nifty did what we call as Mean Reversion. Meaning? In simple words, when the price moves too much away from the mean(or you can all it average) it usually comes back to test it. ( We’ll talk about it someday in this newsletter so don’t forget to subscribe, okay?)
So for the next week, we need to watch carefully is Nifty holds - 16987, that is going to be our support zone for the week. And on the upper side 17360 needs to be taken out to resume the journey.
Nifty’s American counterpart S&P 500 also remained at the same level although it’s near a strong supply zone of 4595 that bulls need to take care of.
I’m not ruling out the possibility of a small pullback or consolidation.
Oil started moving up again and now trading at 110 (Rising oil - bad for India & bad for our pockets)
But Gold remained almost flatish which is a good sign.
Now let’s come to the trades that I took last week -
Sadly two of Stop loss got triggered - United Spirits & Pix Transmission
But that’s okay, Stop loss is your saviour ( Strictly for trading). Every time a stock rises or falls you don’t know how much it can fall or rise, right? Only god can predict that, so we need something that can protect us from that downside, that’s SL in case of trading.
And as for the CUMMINS, it’s working well - It crossed it’s minor resistance of 1064 and inching towards the target.
Shifted my SL to cost, now if it reverses the only money i’m gonna lose is the brokerage.
(Should I keep sharing my trades? tell me in the comments)
So repeat after me, “I will never trade without a stoploss”.
So now let’s come to the “HOMEWORK” part.
So this week when I was scanning for the momentum stocks to trade ( Wanna learn how to find momentum stocks are create a watchlist? Subscribe to my youtube channel - THE AVERAGE TRADER video coming soon on this)
Enough marketing, let’s come back to the Homework part, ya so I scanning for the momentum stocks then i noticed that many MEDIA stocks are showing very strong momentum.
NDTV - 50% in 2 weeks
TV 18 - 10% (Went to 16%)
So it got me curious that is this only momentum or is there’s something changing fundamentally?
So I checked the financials and i noticed something interesting in case of TV18 - Revenue tripled and after 2018 and from 10Cr profit to 607 on TTM basis.
So I started looking for reason and my one friend on twitter told me - TV18 acquired 51% stake in Viacom 18 in 2018 .
Channels that Viacom 18 operates -
And this is what now TV18 broadcast operates right now -
That’s not it, they have Money Control, FRISTPOST and 39% stake in Bookmyshow as their digital offerings.
Plus through Viacom18 they have access to VOOT, which directly puts them in of OTTs.
On VOOT they have shows like - BigBoss, Roadies, Masterchef etc which are very popular amongst the youth.
Plus the launched VOOT SELECT which is their subscription based offering which achieved the mark of 10 lakh subscribers in <1 year of launch plus launched VOOT KIDS in 2020.
Plus they have the backing of Reliance JIO and they’re present of JIO platforms.
And one more thing I noticed, take a look at their margins in NEWS segment. Noticed something?
They we’re -0.7% in 2019, 0.8% in 2020 and suddenly jumped to 12% in FY21.
Are these sustainable? I don’t know because I couldn’t find the reason for sudden jump but i’m actively looking for it.
So all this got me interested in the media sector and specifically TV18 broadcast.
So this is your homework folks, Dig deeper.
( Disclaimer - Any stock discussed here is not a recommendation and i’m not a SEBI registered advisor so please consult your financial advisor before taking any trade or making any investment)
That was it for today folks! see you next week, have a great weekend.