RNRL up at 145 -up 21%

I had just entered RNRL at 105 levels last week for a short term punt. My target was around 140 bucks in two weeks and the stock did it in just 3-4 sessions.

This is market which is a trader’s delight!

Stock Watch -RPL

Do you remember the time when I talked about RPL at 100 about three months back and the stock again found mention in September at 120 levels.
The stock has already touched 260 levels. Thats 130%+ in three months! Did you even dream such a run? Don’t underestimate the power of trends.

L&T ,RPLs and Reliance Energy’s of the world are powering this market and might continue to do so!

Dollar at fresh lows,crude at new highs and NIFTY at new highs

These days even a non supporter of trends might start believing in them. The same old story is getting repeated.

A few days back we had discussed how a downhill for dollar has begun and it looks like there is no bottom in sight for the greenback. At the same time crude is hitting fresh highs at $96! And with the 25 basis cut by the US Fed yesterday, the emerging equity markets might roar again.

The falling dollar holds much significance as it forces international investors to withdraw their dollar assets and put them into commodities and emerging markets. In September, international investors had sold $70 billion of equities in the US market and most of it flowed into India, China and the commodities. This is a big trend and might continue in the coming times.

The biigest risk to this market remains “capital flow control” by the finance minister. Exporters are being badly hit and there has been a loss of jobs . All one can hope is that these doesn’t snowball into some kind of political issue and forces the government to take harsh steps to stem the flow of dollars into India.

Coming to markets, I had written last week that markets are planning to make a big move towards higher levels. To put a number to this move is not possible. When I tell possible targets, people feel surprised. So let the surprise remain while we ride this uptrend.

So what can one do if one is invested or wants to invest now? My suggestion is simple – This is a good time to churn your portfolio and evaluate it again.This is because this rally might get narrower as we proceed forward. If you are not in the “right” stocks, you might not benefit much form these moves.

If you have cash, then either you can take some medium term momentum bets or if you can’t handle the risk just stay in cash. Let me give you an example -many of my clients were able to pick BHEL at 2000 bucks during the famous “P-Note correction”. So just wait like a chameleon and strike at the right time!

I am also thinking as to what can bring a correction this time?

What do you guys think?