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Stocks update

Saturday, August 1, 2009 Leave a comment Go to comments

The overall stock market has acted according to our analysis with no major surprises. Although individual stocks have behaved differently.

The IT pack has performed very well and some of the stocks that we discussed like Infosys, Wipro ,Satyam have done well. (Wipro has moved 10%+ ). Short term traders would do well to book profits in such stocks while longer term investors might nibble at every dip.

Banking stocks too have done resonably well especially SBI. There might be still some more juice left in these stocks but positional traders can book their profits. After get 5-10% in a week, you should be happy.

Reliance was building good momentum but lost it due to bad results. We now have to watch if it picks up momentum again or not. In the longer term, the stocks is still a buy on dips.

Telecom stocks have been laggards and continue to drift sideways. I soon plan to write a post on telecom sector stocks.

Cement stocks like ACC and Grasim are also warming well to the bull market.

In auto, Ashok Leyland is slowly moving up and gaining momentum. Being a small stock, it moves really fast.

Watch out for power and construction stocks. My sense is that next leg of rally might be led by these stocks. I will discuss some of these stocks over the weekend.

Overall market is in a good shape and as long as we don’t get any global shocks, things might just be okay.

Do I see a bubble building- Yes and No.

Yes- because I again see people running after small value stocks. Although some of them have not performed as well as they’d have liked to.

No- because I see a healthy dose of scepticism in the market.

Our job is to stay awake and guard ourselves against any dangers. The market is out there to get us and we have to be ready to defend ourselves. And we can do so only if we stay rational and not be carried away by euphoria.

Categories: Market View
  1. KKDhanotia
    Tuesday, August 4, 2009 at 5:05 pm

    Pl post the date also along with your blog.

  1. Saturday, August 1, 2009 at 3:32 pm

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