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Posts Tagged ‘Sensex’

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.

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Sensex kisses 20,000 -Mukesh Ambani becomes the richest man in the world!

Monday, October 29, 2007 10 comments

Sensex kissed 20,000 for the first time led by the rally in the capital goods stocks. Now didn’t I tell you that it is a good time to pick stocks because most of the people might be thinking of slowdown in FII flows and might be in a wait and watch situation. Now what would those guys be thinking? Will they dare to enter now?

One important thing to notice is that the breadth is getting narrower and very few stocks are participating in this uptrend. It will become more challenging to construct the portfolios with right stocks.

Tomorrow is RBI’s policy meeting and if market indicators are anything to go by, one might see a status quo on interest rates. All housing finance companies’ stocks were going through the roof and banking stocks were also trading firm.Has the market correctly read Mr. Reddy’s mind this time?

While writing to clients last week, I had talked of a 6000 level on NIFTY but I never expected the level to be reached in 2-3 trading sessions! Anyways markets are there to surprise you.

One good thing about this move is the lack of general euphoria as many people were kept waiting on the sidelines. Its tough to re enter markets if you have lost big time on sharp corrections.

First it was was the “pain of loss” and now they will feel the “pain of missing out”.

So just ride the trend till it bends! These are good times-make the most of it.

I am eagerly waiting for the day when Indian economy crosses the resistance level of 10% growth . One it crosses that, the growth trajectory shall alter.

One more thing- I used to tell my friends that in 5 years Mr. Mukesh Ambani shall be the richest person on earth. Who knew that he will reach that milestone in 5 weeks ?

Now all I can say is that gap between him and No. 2 shall be big in the coming years. Reliance has just started!