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Posts Tagged ‘Hindalco Stock’

NIFTY set to cross 5000

Thursday, September 17, 2009 2 comments

With global equity markets picking momentum again, NIFTY is set to cross 5000 today. When this upmove started, 5100+ was the level I had in mind( had shared this with my subscribers).  Going beyond this level is not impossible and my sense is that we might stay above this level in the coming weeks and months.

Coming back to stocks, a switch to large caps has proved fruitful. We made spectacular gains in the likes of Tata Steel and SBI. Also metal stocks like Hindalco and Sterlite have done well. And do not forget about auto stocks (Hero Honda, Tata Motors,Maruti and Ashok Leyland)! Did you notice how Infosys is leading from the front? In 2007, we had avoided Infosys and in this bull run we are riding it right from the beginning!

This is a particular characteristic of stock trading- when you are winning, you get a lot of winners. This is what is happenning right now. Also when moves begin to go bad, you can also get a string of losers. That’s why it is important to have proper risk management in place to control the leverage and survive the unfavourable times.

If this bull run resumes, one has to make the tactical move of rebalancing the portfolios. My sense is that this is not a bull market where every stock will move. So pick your winners carefully. You don’t want to be caught in the wrong stock at the right time. Also you don’t want to be in the right stock at the wrong time.

If this is the beginning of another multi year bull rally, then you have to position yourself right now. Also, avoid the temptation to do intraday trading. Catch the big moves!

NIFTY at 4600 – Bulls take complete charge

Thursday, August 13, 2009 Leave a comment

Today was a super day for the bulls! They took full advanatge of the global cues and forced the bears to liquidate their positions. A normal rally would have been 200-300 points but it got extended to 500 points because of short covering.

The bulls might not going to stop here and might try to win this battle by futher taking the markets up. 4700 is again in sight before profit booking  again starts to set in. On the downside 4550 is now a good levels for bulls to watch for. In the short term this market is very choppy and is playing between the 4400-4700 range now. But today’s move was very convincing as it came without much intraday volatility.

Stock specific, I’d look at moving partially out of sugar as part of risk reduction and move into something  like Reliance Industries /RPL. Metals stocks still look interesting. Sterlite and Hindalco were big winners today and might continue the bullish trend. In short term ITC and Ashok Leyland are two stocks that can pick momentum. Same is true for IFCI and GVK Power. JSW Steel stock from the steel sector looks promising from a short term trade point of view. Auto stocks which were mentioned yesterday made a smart move today.Hero Honda and Maruti were up more than 6% while Tata Motors was up 10%.

This can actually be a good rally as many stocks are ripe to resume their short term uptrend and the bulls can easily do sector rotation. All we need is the non occurance of any nasty surprises and some market euphoria. To deal with nasty surprises, we need to have risk managment in place. Our job is to make money rather than feel excited by this market euphoria. I’d advise everybody to sell their junk stocks (all those unknown midcaps and small caps) into this euphoria because when markets correct these junk stocks will fall more rapidly!

Stock Watch -Sterlite Industries , Hindalco

Tuesday, August 11, 2009 1 comment
Copper Price Chart

Copper Price Chart

Sterlite Industries is a pure play on copper price movements, which have been on an uptrend for past three to four months (see chart). As commodity stocks are volatile, one should be cautious in trading this stock.

550 is a good support region for the stock and can act as a stop loss for the stock.If the stock manages to cross 700, then it can reach 850-900 in quick time.

Similarly Hindalco, which is an aluminium play has been trending up nicely. Accumulate the stock on dips. Strong supports around 95 and 85 levels.