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Posts Tagged ‘SBI 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!

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Stock Check- Reliance Energy, SBI

Friday, September 28, 2007 5 comments

Just check how far Reliance Energy has come from the day I first discussed it. from 675 levels to 1200+ levels is actually amazing. Thats almost 80%+ gains in less than 3 months! And this is not a penny stock we are talking about. I won’t be surprised to see higher levels on the stock.

Also check SBI. The stock was at 1350 levels when I first talked about it. Today it is 1950-an all time high for the stock. Again a gain of 45% in three months.

I don’t understand why many investors shun large caps and put their money in “penny stocks” where the risks are far far higher.You can make 50% in a week but you can also lose 80-90% in next week!

In markets “safety” comes first and then comes the “returns”.