Sanity returns on Dalal street - not quite the same for the bears..:P

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