what a day it was for the markets with 17000 being breached convincingly but the bears clawing back at the end with some profit booking to end the day just short of the landmark figure. This rally is clearly driven by liquidity chasing quality assets and better than expected performance of the economy as a whole. Exports and agriculture though remain a concern and the appreciation of the rupee hasnt helped the IT bunch either. Dubai crisis came and went in oblivion without anyone hurting anyone touchwood ! traders cut their positions short but the positive momentum driven by high volumes made them reenter at " fair valuations" if we see the growth trajectory of most sensex companies.
Some pundits are giving the recommendations of "buying on dips" without realizing that dips cant defined and support levels are a mere numerical figure in the current volatile trade. We suggest a defiant strategy of buying at current levels and holding on to positions till september 2010 for an annual return of 75
% with marginal risk.
here for the picks of the day -
1) madhucon projects - long term pick
2) tfci - tgt 26
3) ifci - tgt- 56.50
4) dhanalaxmi bank - long term pick
5) BF utilities - tgt 1550 - multibagger pick
6) tanla solutions
7) prakash industries - tgt 185 ( short term call)
disclaimer - i personally hold all except madhucon , dhanalaxmi and tanla solutions
Monday, November 30, 2009
Monday, November 23, 2009
what a cracker of a day for the markets....
today was a remarkable day for the traders as well as the investors as leading names lead the rally and every dip was seen as an entry point both by the domestic as well as institutional investors. The star of the day has to be reliance industries whose GDR doubled at the LSE and was up 3% on the sensex by the end of the trading session. Banks , autos , financials all participated in the liquidity and positive momentum rally taking cues from the US and asian markets.
commodities and PSU'S didnt drag either both posting handsome gains. In commodities space GOLD was again the sparkling spor with its futures showing no signs of slowing down
Now...the tips for tomorrow....
buy calls...
1) pratibha industries
2) tanla solutions
3) bank of maharashtra
4) union bank/corporation bank
we maintain underperform on telcom and media
commodities and PSU'S didnt drag either both posting handsome gains. In commodities space GOLD was again the sparkling spor with its futures showing no signs of slowing down
Now...the tips for tomorrow....
buy calls...
1) pratibha industries
2) tanla solutions
3) bank of maharashtra
4) union bank/corporation bank
we maintain underperform on telcom and media
Sunday, November 22, 2009
FII'S being net sellers in last two trading sessions
The technical indicators of the BSE Sensex index chart were looking
bullish last week, but the slowing upward momentum near the 17000
level and lower volume on Fri, Nov 13 '09 were concerns that haven't
been dissipated.
The BSE Sensex spent the week playing hide and seek with the 17000
level, finishing the first two days above it, the next two days below
and then, with a final surge on short-covering on Fri, Nov 20 '09,
ended on 17022 - 173 points (1%) higher for the week. Interestingly,
FIIs were net sellers on Friday.
FII's have been short for 2 days but in the long run we have to remember that they are bullish on india . Its a question of valuations now-how much to give seeing the growth prospective of the company . Also they have been increasing their stake in some of the companies they feel would be leaders of tomorrow. Anant raj industries , amara raja batteries , lakshmi energy , modern dairies are such examples.
short telecom stocks tomorrow....:)
bullish last week, but the slowing upward momentum near the 17000
level and lower volume on Fri, Nov 13 '09 were concerns that haven't
been dissipated.
The BSE Sensex spent the week playing hide and seek with the 17000
level, finishing the first two days above it, the next two days below
and then, with a final surge on short-covering on Fri, Nov 20 '09,
ended on 17022 - 173 points (1%) higher for the week. Interestingly,
FIIs were net sellers on Friday.
FII's have been short for 2 days but in the long run we have to remember that they are bullish on india . Its a question of valuations now-how much to give seeing the growth prospective of the company . Also they have been increasing their stake in some of the companies they feel would be leaders of tomorrow. Anant raj industries , amara raja batteries , lakshmi energy , modern dairies are such examples.
short telecom stocks tomorrow....:)
Friday, November 20, 2009
what a remarkable come back after a volatile session....
markets were down and out 200 odd points then suddenly gained a positive momentum after montek singh's annoucement of healthy capital inflows in the country this year. As i had suggested in my yesterday's post , banks and oil stocks did well , so did the capital goods and power sectors...power wasnt bad either.
yesterday's recommendations -
lakshmi energy -up 6 %
Sun pharma up - 3%
mercator lines up - 4%
icici bank up -2%
dishman pharma - went up 3.5 %..then profit booking led to 3 % down closing
sulzer was up 5 % during the day but ended 1.5 % up
and other calls had similar results...
tata motors has given a clean break out frm the 630 level with most FII'S giving it a "over weight" rating. I give it a "buy" with a target of 725
keep an eye on GVK , powergrid and PSU banking space.
yesterday's recommendations -
lakshmi energy -up 6 %
Sun pharma up - 3%
mercator lines up - 4%
icici bank up -2%
dishman pharma - went up 3.5 %..then profit booking led to 3 % down closing
sulzer was up 5 % during the day but ended 1.5 % up
and other calls had similar results...
tata motors has given a clean break out frm the 630 level with most FII'S giving it a "over weight" rating. I give it a "buy" with a target of 725
keep an eye on GVK , powergrid and PSU banking space.
Thursday, November 19, 2009
The Hare (investor) and the Tortoise (investor)
The fable about the race between the hare and the tortoise is one of
the better known amongst Aesop's fables. These fables not only provide
entertainment to young children, but usually end with a moral that has
relevance for adults.
But does the fable have any relevance to the world of investments? To
find out, let me recap the story:-
The hare once ridiculed the tortoise for its slow pace. Upset, and
knowing the frivolous nature of the hare, the tortoise challenged the
hare to a race. The hare promptly accepted the challenge.
On the appointed day, the race began and the hare was off and running.
As it came near the finishing point, it decided to rest a bit and soon
fell fast asleep. The tortoise, way behind, was slowly but surely
plodding along. It didn't stop even once, and kept right on going with
its measured steps till it got near the finishing point. The other
animals that had gathered to witness this incongruous race, started to
cheer.
The noise woke up the hare. It realised that the tortoise was about to
reach the finishing point, and made a mad dash to try and win the
race. But it was too late. The tortoise won. The moral of the fable?
Slow and steady wins the race.
Is investing a race? Yes, it is. The race is against time, which
doesn't stand still. Remember the saying, time is money? The more time
you can spend in making money, saving money and investing it
appropriately, the more money you will have for your enjoyment and old
age.
When we are young, we tend to be frivolous about our money. And our
time. We spend both on useless pursuits - haring off after a inside
tip or, a sure shot winner or, a great swing trade opportunity. We end
up losing money and wasting time.
In one investing lifetime, only a handful of bull and bear markets can
be fully utilised for generating large profits. To be able to do that,
you need to do your homework, develop proper strategies, and have the
discipline to stick to stop-losses. Otherwise, you will choose exactly
the wrong times to enter or exit the market.
As we grow older, we tend to value our time and money a lot more - may
be because we do not have enough left of either! So, to be successful
as an investor, don't be like the hare. Don't run after get-rich-quick
or multi-bagger schemes. One fine day, you will realise that the slow
and steady tortoise-like investing can amass a lot of wealth through
sheer discipline and the ability to stick to a plan....
nice way to sign out....
the better known amongst Aesop's fables. These fables not only provide
entertainment to young children, but usually end with a moral that has
relevance for adults.
But does the fable have any relevance to the world of investments? To
find out, let me recap the story:-
The hare once ridiculed the tortoise for its slow pace. Upset, and
knowing the frivolous nature of the hare, the tortoise challenged the
hare to a race. The hare promptly accepted the challenge.
On the appointed day, the race began and the hare was off and running.
As it came near the finishing point, it decided to rest a bit and soon
fell fast asleep. The tortoise, way behind, was slowly but surely
plodding along. It didn't stop even once, and kept right on going with
its measured steps till it got near the finishing point. The other
animals that had gathered to witness this incongruous race, started to
cheer.
The noise woke up the hare. It realised that the tortoise was about to
reach the finishing point, and made a mad dash to try and win the
race. But it was too late. The tortoise won. The moral of the fable?
Slow and steady wins the race.
Is investing a race? Yes, it is. The race is against time, which
doesn't stand still. Remember the saying, time is money? The more time
you can spend in making money, saving money and investing it
appropriately, the more money you will have for your enjoyment and old
age.
When we are young, we tend to be frivolous about our money. And our
time. We spend both on useless pursuits - haring off after a inside
tip or, a sure shot winner or, a great swing trade opportunity. We end
up losing money and wasting time.
In one investing lifetime, only a handful of bull and bear markets can
be fully utilised for generating large profits. To be able to do that,
you need to do your homework, develop proper strategies, and have the
discipline to stick to stop-losses. Otherwise, you will choose exactly
the wrong times to enter or exit the market.
As we grow older, we tend to value our time and money a lot more - may
be because we do not have enough left of either! So, to be successful
as an investor, don't be like the hare. Don't run after get-rich-quick
or multi-bagger schemes. One fine day, you will realise that the slow
and steady tortoise-like investing can amass a lot of wealth through
sheer discipline and the ability to stick to a plan....
nice way to sign out....
Mild correction before a breakout...
sensex broke the 6 days upward trend to close at 16785 with nifty nose diving 60 points odd to 4989 led by real estate, banking and capital goods stocks. i expect the market to bounce back 35 points on the nifty tomorrow led by metals , FMCG and pharma stocks by the leaders will have to be the big boys like the ongc's and reliance who have a significant weightage on the indices.
some stocks to look forward to tomorrow are suzlon because of the hansen stake sale buzz , sun pharma because of the drug approval in the US , mercator lines , ICICI Bank , dishman pharma.
some of the gems i would advise my readers would be " sulzer " , sunil hitech , facor alloys , REC , lakshmi energy , walchandnagar industries and TV18. Keep coming back for more updates and brokerage reports.
some stocks to look forward to tomorrow are suzlon because of the hansen stake sale buzz , sun pharma because of the drug approval in the US , mercator lines , ICICI Bank , dishman pharma.
some of the gems i would advise my readers would be " sulzer " , sunil hitech , facor alloys , REC , lakshmi energy , walchandnagar industries and TV18. Keep coming back for more updates and brokerage reports.
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