Hello Investor!

In an exhilarating turnaround, the stock markets witnessed a robust recovery today. The BSE Sensex soared by 609 points, marking its second consecutive day of gains, while the Nifty 50 index confidently surpassed the 22,500 mark. This resurgence was bolstered by stellar performances from key players such as Asian Paints and Coal India Ltd (CIL), which saw impressive upticks of 5% and 4%, respectively.

But before we dive into today’s updates

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Today’s Market Menu

• Chart of the Day: NIFTY Metal Index

• Markets

• Everything else you should know today

• Strategy: Golden Rules for Fighting Inflation & Growing Richer

• Supercharge your Investing Skills

• Management Speaks: Ultra Tech Cement & Gulshan Polyols Limited

• Stock Screener to up your game

CHART OF THE DAY

NIFTY METAL INDEX: A DETAILED ANALYSIS

The Nifty Metal Index has exhibited a clear Stage Analysis Cycle, transitioning from an uptrend to a decline and now potentially moving into a new accumulation phase.

Let's analyze the technical structure, fundamentals, and global cues affecting the metal sector.

Stage Analysis Breakdown
The chart is annotated with Stan Weinstein’s Stage Analysis, highlighting four key phases:

✅ Stage 1 (Accumulation Phase):
➡️The index was in a base-building phase before early 2024.
➡️The 200-day moving average (blue line) acted as support, marking the end of the previous downtrend.

✅Stage 2 (Uptrend / Bull Market Phase):
➡️The index saw a strong rally from Jan 2024 to mid-2024 with price consistently above key moving averages.
➡️Rising RSI and higher highs and higher lows confirmed bullish momentum.

✅Stage 3 (Distribution Phase):
➡️Market formed a top between July–October 2024. o Price oscillated, failing to make new highs.
➡️RSI showed bearish divergence, indicating weakening momentum.

✅Stage 4 (Downtrend / Bear Market Phase):
➡️The breakdown happened post-October 2024, leading to declining moving averages and price falling below support levels.
➡️The index entered a downtrend, making lower highs and lower lows.

✅Current Phase: Potential Stage 1 (Re-Accumulation)?
➡️The index has stabilized and bounced off a key support level (8,500).
➡️Moving averages are flattening, indicating a potential transition to Stage 1.
➡️RSI is rising above 50, hinting at renewed buying interest.

🔍 Key Levels to Watch: 
✔️ Support: 8,500 (recent bottom)
✔️ Resistance: 9,000 (recent breakout level)
✔️ Breakout Confirmation: A sustained close above 9,000–9,200 with volume would confirm a Stage 2 uptrend.

MARKETS

The Indian stock market rebounded strongly, with the Sensex surging 609 points and Nifty crossing 22,500. This marked the second consecutive day of gains, driven by strong buying in Asian Paints and Coal India. Broader indices also saw positive momentum, signaling widespread investor confidence amid global optimism.

_{Closing figures as on 06.03.25 (3.30pm IST)}

🔎 In Focus

🔹 Sectoral Performance: 

➡️IT Stocks: Mixed performance with Infosys & TCS witnessing mild gains, but some mid-tier IT firms faced profit booking.
➡️Banking & Financials: HDFC Bank, ICICI Bank, and SBI saw moderate gains as investor interest in financial heavyweights remained stable.
➡️FMCG & Consumer Goods: Asian Paints led with a 5% jump, supported by a strong demand outlook. Other FMCG stocks like HUL and ITC traded flat.
➡️Energy & Power: Coal India surged 4%, while power stocks like NTPC and Tata Power gained on expectations of higher electricity demand.
➡️Metals & Commodities: The sector saw selective buying, with Hindalco and Tata Steel recording small gains. Pharma & Healthcare: Stocks like Sun Pharma and Cipla were largely stable, with no major moves in the sector.
➡️Auto Sector: Performance was neutral to positive, with Maruti and Tata Motors showing mild gains.

✅ Top Gainers:

🏆 Asian Paints (+4.78%) – Leading the rally
⛏️ Coal India (+3.89%) – Boost from commodity demand
🏗️ Hindalco (+3.74%) – Strength in the metal sector
⛽ BPCL (+3.59%) – Energy sector gains
⚡ NTPC (+3.58%) – Power sector support

🔻 Top Losers:

💻 Tech Mahindra (-2.25%) – IT sector weakness
🛍️ Trent (-0.71%) – Retail stocks under slight pressure
🛠️ Bharat Electronics (-0.71%) – Minor dip in defense stocks
🏦 Kotak Mahindra (-0.58%) – Banking stock under pressure
🏥 HDFC Life (-0.47%) – Insurance sector sees mild selling

NIFTY 500: Positive Vibes

Institutional Action

_{Provisional Figures (Rs. in Crores)}

FPI Action (February 2025)

Sectors where FPIs Bought & Sold during February 2025

Foreign Portfolio Investors (FPIs) exhibited a mixed approach in February 2025, with notable inflows into some sectors while aggressively offloading stocks in others. Details here

FROM THE FRONTIER

Everything else you should know today 

🚀 Gamechanger: The Reserve Bank of India (RBI) has announced a substantial liquidity infusion, comprising ₹1 lakh crore through Open Market Operations (OMO) and a $10 billion forex swap. These measures aim to alleviate the ongoing liquidity crunch in the banking system, ensuring smoother monetary policy transmission and supporting economic growth.

📈 Boost: Castrol India's share price experienced a significant uptick following reports that Saudi Aramco is considering acquiring a stake in the company. This potential investment by one of the world's largest oil producers underscores Castrol India's strategic value at around $10 billion in the lubricants market and could lead to enhanced growth prospects.

⚡ Shocking: The CBI has booked Jai Corp Director Anand Jain and others in a massive ₹2,434 crore bank fraud case, alleging fund diversion and financial misrepresentation. This move highlights growing regulatory scrutiny on corporate financial misconduct.

🤝 Synergy: Zaggle Prepaid Ocean Services Limited has entered into an agreement with Tech Mahindra to provide its 'Zatix' spend management dashboard. This collaboration aims to offer improved visibility and control over corporate and purchase card expenditures, enhancing operational efficiency for Tech Mahindra.

🔋 Electrifying: Ola Electric Technologies Private Ltd, a subsidiary of Ola Electric Mobility Limited, has received a sanction of ₹73.74 crore from the Ministry of Heavy Industries under the PLI Scheme for Automobiles and Auto Components.

💵 Fund Raising

✅ Capacite Infra to raise ₹75 crore via NCDs for debt repayment and corporate growth.

📝 Order Wins

✅ INOX India Ltd wins ₹190 crore orders, including a major European university contract for cryogenic equipment.
✅ RPP Infra secures ₹80.98 crore water supply project in Tamil Nadu, enhancing infrastructure with underground tanks and feeder mains.

ONEZERO-F ACADEMY

Warren Buffett’s Golden Rules for Fighting Inflation & Growing Richer

In the face of rising inflation, Warren Buffett, the Oracle of Omaha, offers timeless strategies to safeguard and grow wealth. His approach emphasizes personal development, strategic investments, and prudent financial practices.

💰 Let's dive into these five insightful lessons:

1. Invest in Yourself:
Buffett asserts that the most valuable asset is oneself. By enhancing your skills and knowledge, you create an inflation-resistant foundation for your earning potential. This self-investment not only boosts your career prospects but also ensures that your abilities remain valuable regardless of economic fluctuations. ​

2. Choose Businesses with Strong Pricing Power:
Investing in companies that can adjust their prices without losing customers is crucial during inflationary times. Such businesses maintain profitability even as costs rise, making them resilient investments. ​

3. Avoid Cash and Low-Yield Investments:
Holding large amounts of cash or low-yield bonds can be detrimental during inflation, as their real value diminishes over time. Buffett advises allocating assets into investments that offer returns exceeding the inflation rate to preserve and grow wealth. ​

4. Invest in Low Capital-Intensive Businesses:Companies that don't require significant ongoing investments to maintain operations are preferable during inflationary periods. These businesses are less affected by rising costs and can sustain profitability without the need for continuous capital infusion. ​

5. Diversify with Inflation-Protected Securities:Incorporating Treasury Inflation-Protected Securities (TIPS) into your portfolio can provide a hedge against inflation. TIPS adjust their principal value in line with inflation, ensuring that your investment maintains its purchasing power over time.

SOCIAL MEDIA SPEAKS

SUPERCHARGE YOUR INVESTING SKILLS

Shree Rakesh Jhunjhunwala, Money Bee Month 2016

MANAGEMENT SPEAKS

Management Call Highlights

✅ Ultra Tech Cement announced a significant capacity expansion plan, aiming to reach 182.8 million tons by the end of FY25, capturing approximately 28% of the industry's capacity. This aggressive growth strategy underscores Ultra Tech's commitment to meeting India's burgeoning infrastructure demands and solidifying its market leadership.
✅ Gulshan Polyols Limited (GPL) shared an optimistic outlook in their recent analyst call, highlighting favorable government policies and a softening of raw material prices. The government's decision to supply Food Corporation of India (FCI) rice to the ethanol industry at a subsidized rate of ₹22.50 per kg is expected to positively impact GPL's ethanol segment margins.

STOCK SCREENER TO UP YOUR GAME

Peter Lynch Screener

by Shankar Nath

Market Capitalization > 500 AND
Market Capitalization < 15000 AND
Price to Earning < Industry PE AND
Price to Earning < Historical PE 5Years AND
Profit growth 5Years > 15 AND
PEG Ratio < 1 AND
(Price to Earning / (Profit growth + Dividend yield)) < 0.5 AND
(Price to Earning / (Profit growth + Dividend yield)) > 0 AND
Debt /Total Assets  < 0.25 AND
(DII holding + FII holding) < 20

Your Opinion Matters

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Until tomorrow!

Mohit & the OneZero-F team

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