Home > Market View > Sector Watch – Auto Pack, BEL

Sector Watch – Auto Pack, BEL

Wednesday, November 25, 2009 Leave a comment Go to comments

Auto pack is again picking up momentum and my picks in the sector are Maruti, Tata Motors, Ashok Leyland and Hero Honda. Infact, I had recommended the same to my subscribers about 1 week back (for swing trading) as one could see the big moves coming.

Even if you see in the slightly longer term a stock like Tata motors has been a clear outperformer. Back in July I had targets of 600 in mind and now it seems 750 is also possible in this rally.

Similarly, Ashok Leyland has been a great performer in our portfolios. The stock was picked at 34-35 levels back in July and already the stock has delivered 50%+ returns as compared to the index which has virtually not gone up more than 10% in this period!

There are many stocks and sectors that will give such outperformance in the coming months. The trick is to be in the right stocks at the right time, so that you can ride the big waves. You do not have to indulge in short term trading to make your money.

On a sidenote,  Bharat Electronics which I had talked about last week has suddenly shot up by 5-6%. Keep an eye on this beauty.

There is no need to run after a Bharti or a Suzlon or a Unitech.  Compare their performance with that of the stocks I mentioned above. There might be a temptation to bottom fish in these stocks but I’d advise every smart investor to exit on rise and every smart trader to short them on rise.

Definitely, there will be some sweet pickings in the telecom sector if you are a value player.The best time to pick such stocks is on the day when they announce “earning shocks”. That’s when you can buy the fear and make money!

So play this momentum while managing your risks. it is important to be aware of the fact that  this market won’t look like a bull market for all the stocks. That happens only at the end of a bull market phase. This might just be the beginning!

Who knows if we are entering again into a 2003-2007 kind of bull market again?

Categories: Market View
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