Sunday, November 18, 2007

Y can’t it be…………….

The story is contrary to the current happenings at the bourses. The positive side shall go like this way….
In my earlier write up I clearly mentioned to hold positions in fertilizer stocks for decent gains that turned right. Now they doubled from the prices recommended to buy & hold. In the same manner I wrote about the investments of FIIs in our markets. They first invested huge amounts in the Reliance group. They are familiar with the Reliance group growth story than the Indian growth story. Now they are spreading their investments to other sectors with different groups.
The situationed at large caps are rather fully saturated at the price level and left with little scope for further appreciation. So the MFs, FIIs and the DIIs are left with no option but to explore new opportunities with emerging companies, though they are small to medium in size at this point in time. The flare up in prices is due to the mismatch in their size and the amount of liquid cash chasing the stock.
The negative side shall go this way….

The small caps and the medium cap stocks are now in their flare-up run at the bourses is visible but the investigative approach can show a dark side of manipulations in the game.

The story goes back to the 2005-2006, the FIIs, the MFs and the operators heavily invested in (the early bird catches the fish-but the frontliners bite the bullets in the war front) the Mid & small caps to capture the instant large gains which turned out a futile effort due to lack of liquidity due to the steep crash when the Sensex was at 12000-12500 range. The investments became dud for long two years with no moves. After a long frustration, now these people captured the up moves with vengeance.
I personally feel that the prices are sky rocketing with thin edge time to retail investors to participate in those sharp moves is a clear sign of distribution at higher levels.The retail investor will now about the rise in the scrip at the end of the day, after the next day only large participation comes above 20% rise. To conclude the view, these stocks likely to hit the lower circuits or steep fall occur after three to five trading sessions of Bull Run. So Be cautious…………………… buy but never chase.

2 comments:

Anonymous said...

Well I am a value investor, and go for a long term, I feel This Bull run is going to stay :)

BAMMIDI NAGESWARARAO said...

yes, invest in the the infra & reality sector and the telcos-tower business will become the investment zone and stay invested in FMGC- food & apparel sector,after one year the retail boom is the hottest ting to discuss.