Thursday, September 6, 2007

liquidity problems subside

the market in uptrend due to
1. No global problems like yen carry trade and subprime related liquidity crunch.
2. Overall domestic poletical problems over

So bad news is not there and 9.3% GDp is enough to keep upward momentum intact.. A good news may just put the market in anaother fresh rally where it will reside into the clouds say over 16200 where the floor could be 14850 and trading brsikly above 16500+ where the target could be easily 17150.
But this is possible if both the above conditions atre intact.
Currently the senario according to me is a ytarget of 16000 or 16150 but a good float at 14500.
Value buying lies at 13390 (using Pe multiple calculations)
put in money in the market in good stocks (illiquid stocks midcaps) or might be good liquid stocks which are ot rally driven. Think of stocks as u can take them home and marry them but not as one night strand....
For traders trade is FMCG its safest.(ITC,HUL,GSK cons is betterr)
Among my buys Geodesic info looks good alomg with a hold on elecon lanco and Sadbhav engg.
Buy Power at ur risk and if u have power (those who read my previous blog) hold it at my risk.
telecom looks good to me.
Invest in MF if u dont understand the market trend.......:)
IT looks good as valutaion for long term
I know u have losses in IT dont sell them off.
Add if u trust them and add trusted ones only.
Dont trade in liquid stocks. They are the one largest hit by above problems
Buy futrs keep 15-20% loss bearing capability.
Dont belive in Diwali funda mkt are not emotionals as Indians are.
this is the best time to restructure porfolios do that now.....

No comments: