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Posts Tagged ‘Reliance’

Market update-Stocks to watch

Thursday, July 23, 2009 Leave a comment

In this rally, it might be a prudent strategy to stick to the large caps like Reliance, SBI and L&T. I am saying this because the volatility might be too high on small and mid cap stocks.
In terms of sectors-capital goods, banking and pharma look the best. In pharma stocks like Dr. Reddy and Cipla are hitting new highs, which is always a good sign.
The most critical thing will be manage the high volatility and make a timely exit. If NIFTY picks up momentum after 4700, it might be a good idea to hedge by selling some out of money call options. Alternatively putting tighter stops will do the trick.

The macroeconomics of Indian economy are improving as is evident from the fact that infrastructure sector is picking steam again. As last bull market was driven primarily by capital spending, market participants (read FIIs) might see it as a good sign.

So ride the wave but always look around for danger signs.(like 4250 on the NIFTY or a rise in upside volatility)

Mukesh Ambani’s Goldmine

Tuesday, July 21, 2009 Leave a comment

Came across this interesting story about Mukesh Ambani and RTGIL. I wonder if this is equivalent of being unfair to RIL shareholders.At the same time, this man will surely retire as the most wealthy person on this planet.

Categories: Trading Ideas Tags: ,

Mukesh Ambani's Goldmine

Tuesday, July 21, 2009 Leave a comment

Came across this interesting story about Mukesh Ambani and RTGIL. I wonder if this is equivalent of being unfair to RIL shareholders.At the same time, this man will surely retire as the most wealthy person on this planet.

Categories: Trading Ideas Tags: ,

Markets resume uptrend

Thursday, November 15, 2007 8 comments

Yesterday was a day when markets resumed their uptrend. Now the only hurdle that remains is 6000 on NIFTY. If markets are able to take out that, then 6200-6300 is highly probable. How far we go shall depend on how many people go short on this rise.

At the same time we need to pay specific attention to their risks. Global conditions are still shaky and any sharp correction cannot be ruled out. So if you don’t act greedy, you will do well to ride this. Those who have booked profits at 5000 might feel tempted to jump in and we shall wait for such guys to give in to their temptations.We shall be getting out when such guys shall begin to get in!Its all about taking the right opportunities and managing your risks.As you are competing with the best in the world, you need to give your best.

My old favourites like L&T,RIL etc are doing well and some more momentum might be expected in these scrips. RNRL too is showing a renewed momentum and I have made a re-entry into the scrip. RPL seems to be suffering from “over ownership” and every rise in the stock is met with increased supply. It looks like RPL shall take a long time to regain strength. The price action on Power Grid too was not encouraging.Clearly one needs to keep a close watch on the stock.

One of our earlier ideas-JP Hydro is showing considerable strength and 100-105 looks possible in the short term. That might make it a “doubler” for us in less than three months!Still this might rank well behind couple of stocks that have given 3-4 times in last couple of months.

Now I know many of you(also many market commentators) might say that markets have “overshot” on the upside. I agree but our style is all about taking advantages of such moves(read greed). An Adani might be a bad stock but gave us 200%+ whereas an Infy which is a good stock gave -15%. What do you prefer? We just focus on making more money with lesser risk.

IT stocks are staging some sort of recovery but I won’t be taking it seriously till some real strength emerges. This was was more of a dead cat bounce (similar to what ITC did the other day).

Markets displays strength – SBI hits a new high

Monday, November 5, 2007 4 comments

The markets displayed a great strength on Friday and held the 5700 levels I had mentioned. All this, despite the negative global cues! this market has a mind of its own and does what it wants to do. If you remember we fell on Thursday despite stronger global cues.

Another interesting point to note is the FIIs were buyers when markets fell on Thursday and they were net sellers(provisional data) when markets rose on Friday. Usually it always happens the reverse way!Does this signal the arrival of the domestic investor? (Might be too early to draw a conclusion- one or two observations are not enough)

Things look positive as of now and we seem to be on track to have a nice Diwali. Also do you ever wonder as to why the TV channels have suddenly stopped talking about FII money slowdown? Everyone anticipated that after Oct 25 and predicted a sideways to downward move. As a result many people might have missed this upmove.

Banking stocks like SBI seems to be heading higher. This remains my top pick in the PSU banking space. For short term punts one can also look at Bank Of Rajasthan and Bank of India.

The Reliance pack looks very interesting and I have placed quite a few bets on them in the last two weeks. So far they have netted some handsome gains.

As long you manage your risks, you don’t have to worry in this market. the moment you go on extra dose of leverage or buy based on the “hot news”, you might land up in big trouble. This market shall conspire against you and throw you out of this game!

My next targets on NIFTY are pretty huge if the trades work out. I am being pleasantly surprised each day. At the same time I am aware that things can change any time. This market is evolving very fast and you have to adjust to it pretty fast.

So stay put and remain vigilant. Always remember-it is your hard earned money which is on the line.

Markets cruise ahead-no targets in sight!

Monday, September 24, 2007 11 comments

When this move started in the beginning of the month, my sense was that 4800-4900 might be reached. The markets have gone past these levels with relative ease(surprise! surprise!). To be honest with you, I have been pleasantly surprised by upmoves in the likes of RPL and RIL. When REL crossed 800, I said 900 is possible in couple of weeks. Today I see the stock around 1100.Two weeks back RPL was at 120 when I talked about it and today it is 170. This is the power of trends for you!

Now that 4900 has been reached in such a short time, I see a lot of sceptical faces on the street. Almost everyone is “waiting for a correction”and is therefore predicting a correction. This also implies that lots of market participants are feeling uncomfortable seeing this sharp move.Somehow they are not able to explain the moves!

All the focus should now shift to profit preservation and adding on to the profits. This move can easily take us to unthinkable levels. The game is more about keeping a clear head and executing your strategy.

There is no need to waste your time thinking about the next target on NIFTY/SENSEX. 5000 might offer some resistance on NIFTY.My feeling is that markets might continue to move up without significant corrections. I shall continue to ride NIFTY while it goes for the moon!

So just ride your winners and manage your risk. Let the rest of world find the “reasons”. By the time they have enough reasons on their hand, the markets might choose to reverse!

(For those who want to short this market should consider this- when GOOGLE was listed at $100+ in 2004, people thought it was expensive. Today it is trading at $550 and continues to trade higher.Would you like to go short on such a stock?)