The Nifty will test new high in May, though it pared some gains in Friday trades it added on Thursday. The condition valid even the Nifty touches 3978-79, keep long in the telecom, and energy sectors. The govt. offered some sops to cement industry and will likely to announce benefits relating to sugar and real estate. The RBI likely to play its intervention role to keep the Rupee at 41+ level. The volumes also increase considerably in the recent trading sessions.
The positive news is that the MF raised Rs 24,271 crores recently, to make the total to Rs 3,50,440 crores.
Saturday, May 05, 2007
Wednesday, May 02, 2007
The Mid Cap Honey moon, now!
The market was hammered to every body’s surprise in May-06, lead to a little participation from the small investor in the mid caps. That time most of the investors lost thousands of crores in sugar stocks and later in reality sector stocks, the night mare still hangs in the minds. The markets beyond expectations bounced back made most were surprised to invest. These situations lead the HNI’s queue to invest in stocks becoming long day after day. In the mean time the MF’s came with different NFO’s one after the other.
Recently the Regulatory authorities came with restrictions that no MF can park more than 10% of their assets in Short term deposits, where as it was nearly 30 % at one point.The Fund managers started identifying better places to park their money and on the other hand they were convinced that the front line and large caps are reasonably highly priced and even became risky. So the best option left is the Mid Caps which are lagging the rally for quite some time became the source to depend.
Now they are sending the feelers that the Mid caps are the best bets at this point in time. No doubt that there some Mid caps are still under valued but not all, great potential left to outperform the market. Invest in the highly liquid stocks in the emerging sectors as we have discussed in the earlier posts.
Recently the Regulatory authorities came with restrictions that no MF can park more than 10% of their assets in Short term deposits, where as it was nearly 30 % at one point.The Fund managers started identifying better places to park their money and on the other hand they were convinced that the front line and large caps are reasonably highly priced and even became risky. So the best option left is the Mid Caps which are lagging the rally for quite some time became the source to depend.
Now they are sending the feelers that the Mid caps are the best bets at this point in time. No doubt that there some Mid caps are still under valued but not all, great potential left to outperform the market. Invest in the highly liquid stocks in the emerging sectors as we have discussed in the earlier posts.
Tuesday, May 01, 2007
The market may touch 3920-3940
The Nifty fails to trade above 4140 on 3rd & 4th May-07, the market may touch 3900 range before it make afresh bid to cross the historical high. The Nifty is struggling to find support for upward move as the Cipla, ICICI, Bajaj Auto and HLL has not enthused the market. If the market receives lackluster numbers from the metals space and ITC, the it will take longer time to cross the high.
Why we should buy “Tech Stocks”?
The rupee appreciation is a great concern for those got positions in the Tech stocks as they were the most affected. But the long term investors should consider this is a great opportunity to buy those companies which are having offices across the world especially in China. The companies like TCS, Satyam, HCL-Tech, Tech Mahindra, and Polaris could out perform the market after six months. If you still consider the rupee could touch 38-39 then wait, other wise the deals made here after would be boom to them.
Monday, April 30, 2007
Bright Long term bets.
SAIL, lost the steam may touch 112-114 in short term, if the stock fails to trade above 134-135 range, it could even touch 106. Now it is forming south ward journey. But on the long term bets it could easily cross 250 as its strengths are increasing day by day.
Buy IDFC for long term at 91-93 with a stop loss at 85. It could touch 145-150 range as it will out perform the market in future. The broking houses valuations are high, it’s “Share khan” is no less than the peers.
Buy IDFC for long term at 91-93 with a stop loss at 85. It could touch 145-150 range as it will out perform the market in future. The broking houses valuations are high, it’s “Share khan” is no less than the peers.
Fund Manager of your Funds
Try to become a fund manager of your capital to earn big returns from your capital.
A definite plan and a disciplined execution with reasonable investment over a period of time in the Stock market can reap good capital gains. Simple protective measures in down turns of market and regular incremental investment of returns to save from the rising inflation.
A plan of your invest should meet your future needs and that should include and care for the unforeseen debacles. The market always provides good opportunities to those who are vigilant and got the patience as the farmer waits till the crop yields, will pay better returns in the stock market.
Initially try to allocate your 100 as 15% for long term (more than 3 years), 20% for medium term (1-3 years), 40% for short-term ( 3 months to 1year) investments and rest 25% for momentum buying as short period of investment. Plough back 50-60% of your profits back into your long term stocks so that profits earn more profits.
A definite plan and a disciplined execution with reasonable investment over a period of time in the Stock market can reap good capital gains. Simple protective measures in down turns of market and regular incremental investment of returns to save from the rising inflation.
A plan of your invest should meet your future needs and that should include and care for the unforeseen debacles. The market always provides good opportunities to those who are vigilant and got the patience as the farmer waits till the crop yields, will pay better returns in the stock market.
Initially try to allocate your 100 as 15% for long term (more than 3 years), 20% for medium term (1-3 years), 40% for short-term ( 3 months to 1year) investments and rest 25% for momentum buying as short period of investment. Plough back 50-60% of your profits back into your long term stocks so that profits earn more profits.
Sunday, April 29, 2007
Free, free.. every thing is free,..
Now we are in a world of offerings with big slogans stating “Free, free.. every thing free,.. absolutely free”. In spite of the fact that we all know “Nothing comes free” we tend to pay attention. I know some people, you may also know that many people lost their money, time and even lives in Stock Markets. The market operates on most competitive and professionalized battle field with bulls and bears fighting to gain control. The stock market is no exception to float free advices, free recommendations and free services. All losers blame the market for the loss incurred/debacle but not his /her greed and lack of common sense in accepting “that Free”. We should accept that advice as a piece of information but not as a mandate but we get trapped in emotion.
Most of the recommendations are sponsored ones to bring/ prepare scapegoats. Most of the recommendations come only after they acquired sizable quantity in that stock and then they release the “targets”. Initially for some time they also buy so that the recommendation gets some weight-age and then they make us as liquidity creators for their offloading. Never forget to understand the “motives” of the person offering the recommendation.
The stock market is a business place neither anything comes free no anybody do business for a loss. All kinds of people come to stock market to become rich by their talents but not to make the other person rich. There could some genuine “Suggestions” but not “Recommended Targets”.
Please provide time to do your home work; as the market is most dynamic “no one” can be right every time and all the time, understand what deals you make and the response from the market. There is nothing wrong in paying reasonable price for “gaining the most required experience” of “what not to do in the market”. Never accept any recommendation blindly, including mine. Try to apply your judgment, think twice before coming to a conclusion on your investments.Free your self from the FREE….No “one” can win the Market but every body can run along with the market. Try to be in the winners club and sail along with the wind to make the journey simple and beautiful. Have a great successful and gainful journey. Good Luck.
Most of the recommendations are sponsored ones to bring/ prepare scapegoats. Most of the recommendations come only after they acquired sizable quantity in that stock and then they release the “targets”. Initially for some time they also buy so that the recommendation gets some weight-age and then they make us as liquidity creators for their offloading. Never forget to understand the “motives” of the person offering the recommendation.
The stock market is a business place neither anything comes free no anybody do business for a loss. All kinds of people come to stock market to become rich by their talents but not to make the other person rich. There could some genuine “Suggestions” but not “Recommended Targets”.
Please provide time to do your home work; as the market is most dynamic “no one” can be right every time and all the time, understand what deals you make and the response from the market. There is nothing wrong in paying reasonable price for “gaining the most required experience” of “what not to do in the market”. Never accept any recommendation blindly, including mine. Try to apply your judgment, think twice before coming to a conclusion on your investments.Free your self from the FREE….No “one” can win the Market but every body can run along with the market. Try to be in the winners club and sail along with the wind to make the journey simple and beautiful. Have a great successful and gainful journey. Good Luck.
Young & Energetic companies
Like human beings, companies born, enjoy their young days and matured with their special qualities, get reorganization for their expertise and become old over a period of time, vanish all the celebrity.
Try to invest in young companies whose capacities to rule the future is unrealized but their enthusiasm to excel is highly exhibited. These qualities reflect and can be understood by the balance sheet. The initial times is rosy and fairly reward their investors. These young companies become matured over a period of time but many a times survive with depleting energies. As the time passes, they even become old companies and drag their life in their respective category of industry as destitute. Their performance grossly depends on the industry fortune and nothing special about them. These companies hardly enrich the new investors.
Invest for long term in those companies whose experience has the multi dimensional reach to grab the existing opportunities and place their hands on the emerging opportunities. Their sustained energy always reflected as incremental increase in their market capitalization. The company management has to be respected even in case of bad cyclical weather that lives for short term. The matured companies live with energetic mood to expand, perform and enrich their investors.
Now the special case arouses. The matured companies fail to with stand the vagaries of down turn fortunes, may lead to a stage like ‘coma’ for some period of time. The new investors/ management come to the rescue, infuse fresh energy into the team that could change the face the company. Most of the times, these companies reward their trusted investors and become “Multi- baggers”.
In the universe of nearly 1100 traded companies in NSE, find out the category in which your beloved company falls and it’s energy level.
Try to invest in young companies whose capacities to rule the future is unrealized but their enthusiasm to excel is highly exhibited. These qualities reflect and can be understood by the balance sheet. The initial times is rosy and fairly reward their investors. These young companies become matured over a period of time but many a times survive with depleting energies. As the time passes, they even become old companies and drag their life in their respective category of industry as destitute. Their performance grossly depends on the industry fortune and nothing special about them. These companies hardly enrich the new investors.
Invest for long term in those companies whose experience has the multi dimensional reach to grab the existing opportunities and place their hands on the emerging opportunities. Their sustained energy always reflected as incremental increase in their market capitalization. The company management has to be respected even in case of bad cyclical weather that lives for short term. The matured companies live with energetic mood to expand, perform and enrich their investors.
Now the special case arouses. The matured companies fail to with stand the vagaries of down turn fortunes, may lead to a stage like ‘coma’ for some period of time. The new investors/ management come to the rescue, infuse fresh energy into the team that could change the face the company. Most of the times, these companies reward their trusted investors and become “Multi- baggers”.
In the universe of nearly 1100 traded companies in NSE, find out the category in which your beloved company falls and it’s energy level.
Subscribe to:
Posts (Atom)
