Posts Tagged ‘NIFTY’

Metals,Banking,Auto and IT back in focus

Wednesday, November 18, 2009 Leave a comment

Metals stocks have resumed their uptrend after going through a severe correction. JSW Steel is back above 900 while Sterlite is knocking on the doors of 900 and might soon reach 950+. Hindalco too is moving up after correction.

Similarly, a stock like Hindustan Zinc which is play on Zinc, is rising steadily and is now close to 1000 levels.

Although these are high beta stocks, but it is evident now that the commodity cycle has turned again and we might see some momentum on these stocks in the near future.

IT sector is also defying gravity and is trending up. A stock like Wipro which I have been riding since 400 levels has moved to 650 levels in last 3-4 months giving a 60% return. TCS and Infosys also continue to shine and move upward. These stocks have definitely surprised a bit on the upside.

Auto stocks like Ashok Leyland,Tata motors and Maruti which I have been recommending for last few months also continue to give excellent returns. I now see the rally spreading to auto ancillary sector and there are some real gems in the sector that carry huge potential to be next multibaggers.

Banking is another sector which has shrugged off the interest rate fears and are moving up on momentum. it is very likely that market has priced in some interest rate hikes by the RBI in the near future.

At the same time, there have been many sectors like real estate and telecom that continue to drift down. Every rally is a chance to sell. It is very unlikely that these sectors shall begin their uptrends in a hurry.

If you are searching for value, you might find it in some small and mid caps. if you are searching for momentum, then it is better to stick to large caps and ride this liquidity driven uptrend.

Categories: Market View, Stock Ideas Tags:

NIFTY-Will we get a correction?

Friday, September 11, 2009 4 comments

As indicated last time, this market is testing the patience of bulls as well. Yesterday was a case in point. The bulls became over confident and the markets told them not to take things for granted.

The upmove which started from 4600 is still intact and short term startegy should be to buy on dips(if you get any).

Stocks to watch could be something like Torrent Power which was one of yesterday’s stars.

Large caps is the space where I am currently focussing my attention as midcaps need to take a bit of rest before they fire again.

Where are all the bears?

Wednesday, September 9, 2009 Leave a comment

The bulls have now taken a good grip on the market with bears no longer in sight. I keep on hearing various predictions how this market will fall back to “11000 again”. My sense is that market bears are spreading these stories because they have missed the bus. Some of the retail crowd is also feeling a bit scared to buy at these “high levels”.

If you also rely on such predictions, you might also miss some of the moves. Let’s learn to listen to the markets rather than spend our energies in proving ourselves right. and right now- the markets are telling us that they want to go higher. if you manage your risk well, you can benefit immensly from these moves.

When it comes to sectors, I would pay special attention to the metals space. You’d have noticed how Sterlite and Tata Steel are steadily climbing the charts.

Also, I’d make the tactical move of booking profits in midcaps and moving to large caps.

5000 on NIFTY might be the magical figure which might attract many more investors into the system. We are safe as long as scepticism about this bull run prevails.

As a final note, a big thanks to those who are trying and using my products. I don’t promise a get rich quick scheme but  stay committed to give the best stock ideas to the clients and educate them about markets.We are making decent money on our ideas and intend to make much more in the long term.

I’d also suggest that you read some of the past articles in the Investor Education section. They might be of good assiatnce to you in this market.

Categories: Market View, NIFTY Strategy Tags:

Markets on a roll

Monday, September 7, 2009 Leave a comment

Today was a great day for stocks with many of the stocks shooting up more than 5% , especially some of the small and mid caps.

In large caps- Auto stocks are the stars.

Hero Honda has been running up steadily while trading stocks like Ashok Leyland(beyond its medium term target of 40) and Tata Motors(up 11%) are playing their part in supporting the markets.

DLF and Unitech are also moving according to the expectations with each up significantly.

I am just hoping that you are able to make some money out of these moves! I am shifting my focus on new ideas as well as exits for the existing stock ideas. There is still lot of money to be made in the medium term if one plays the moves correctly.

Categories: Market View Tags:

Are markets ready to set a new high?

Monday, September 7, 2009 Leave a comment

After last week’s consolidation, the bulls managed to again get a firm footing on Friday. The uptrend might continue on Monday and the remaining week.

What’s interesting to note is that, despite all the negative news outflow, this market is not falling! What does this tell us?

One of the biggest issues with us is our mental roadblock. We take too much time to realise a bullish market and take too much time to react to bearish trends.

For example, this current uptrend actually started around 3300-3500 levels(not at 2500!) and continues to firm up. My sense is that most of the investors shall realise this only after the markets start to surprise them on the upside.

An opposite of this happenned in 2008 when investors took a long time in realising that bearish trend has started.We have seen this cycle happenning in 2007 and history shall repeat itself because human nature seldom changes. If you are waiting to pick the top and the bottom, you just end up missing a large part of the gains and end up being caught in the reversal moves.

So it is always good to be prepared for surprises in the markets. Be aware of your greed and stay disciplined. My sense is that in the current climate, you might be pleasantly surprised on the upside.

Categories: Market View, NIFTY Strategy Tags:

Bulls feel jittery

Tuesday, September 1, 2009 Leave a comment

As expected, the bears attacked the bulls while they were enjoying their wins. Caught them by surprise! The correction might continue but the bulls might try to defend 4500 level.

That is the reason why it is important to evaluate your risk on a constant basis. This is more important for leveraged players as one bad move can spoil the whole party!

If you don’t know your entries, exits and risks, such moves can cause great confusion and damage your confidence to trade successfully. This is not a one way market and will question your beliefs at every step. For investors, this is not the question of being right all the time but knowing when you are wrong. As they say- investing is the business of making least number of mistakes. Those who make more mistakes are knocked out of this game.

A lot of investors will undergo this confusion in the coming days. Are you prepared?

NIFTY at 2009 highs -What next?

Monday, August 31, 2009 Leave a comment

NIFTY has so far behaved according the expectations. Seven consecutive days in the green!

Last week’s outperformers included stocks like L&T and stocks from oil and gas. (Aban offshore in particular) . Also one of my favourite large caps Infosys Technologies is leading from the front. Sometimes, my predictions do go right!

The bears got no favourable support from the global markets and are still licking their wounds. They might launch a big attack sometime this week to scare away the bulls. As stock market trading is more of a mind game, this might again create doubts in the minds of some players. I’d use any such correction to add some potential rockets.

I had suggested last time that one should start thinking of hedging once NIFTY starts to move beyond 4700+ levels. The best way might be to sell higher level call options (covered call strategy) just in case you wish to keep your long positions.

I have some big targets in mind for this current upmove. So let’s be a bit more greedy but also keep a sharp eye on our risk. If you go overboard or leverage too much, you might gift away this advantage.

Categories: Market View Tags: ,