Thursday, October 29, 2009

Be Careful!!

We are quite high levels.....and Growth targets for next year are much lower from expected. I see the GDP forecast between 5.6-5.8% but not more than 6.2%. Consumer demand seems however been picking up.Hence its safer to move into automobile and Consumer goods especially the later.
Markets could plummet if the results are below expectations.

To look at atleast 20% safe upside. I recommend the following

Glaxo (2000+)
Nestle (10% more++++)
and P and G ( CMP: 1422 ;should touch its high of 1650+)
these stocks have very litlle downside even if the markets fall.

Marico, Dabur and Enami are also good but I would bet on MNCs. Marico is better in Indian FMCGs if you looking a growth in the next 4-5 years.

Nirma, will grow slow owing to undeperforming marketing strategy, but some investment is recommended here. Although MNCs should be given more concentration.

Hindustan lever (HUL) would be a lagger in this space being an MNC. Co

Kindly note that these stocks are not only buffers but at the same time will lead the rally in case the Sensex goes to 20k and Nifty to 6k as the pure factors driving this will be Indias consumer demand.

Even at higher levels a hold is recommended in these stocks

As I have always said..try exiting Reliance stocks of both the Reliance groups.They will underperform.

Auto story will also be driven by huge consumer demands in comming heres. Hero Honda, Tata motors and Maruti remain good picks. :)

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