Now what to buy?

Any use to buy at these levels is the question to be asked at this critical juncture?. The stock market is a such a beautiful place where it accommodates all sorts of people irrespective of their participation…Bulls, Bears, Day-traders, Swing-traders, Investors, Riggers, Manipulators, above all the Market Operators and the Regulators in its journey either up or down.

In my earlier post on 20-07-07 suggested the sectors and the stocks to buy with a title “The up-move unlimited!…The markets world over inching up day after day despite of some concerns and negative views and cautious suggestions from the brokerage houses.
The Nifty has crossed the 4480-4520 range as posted earlier, now the suggestion is stay invested with the remaining balance in the del. of Idea, Bharti, Zeel, Ster, IDBI and IDFC. In case of compulsive nature to take del. try in Ranbaxy, L&T and Dabur. The FMCG move could in the offing as the retailers increasing their space rapidly. It is very likely that DLF and UNITECH will be included in the NIFTY by next quarter. So accumulate in small lots and gain from the move. The early initiatives from the KPO and CRAMS likely to benefit India and the nuclear deal can make a lot of change in the valuations of the equipment manufactures like BHEL, ABB, Punj Lloyd. The NTPC, REL and Tata power will benefit, as they are leaders in power generation. The above companies can be accumulated, and the fall becomes a big opportunity.

The Nifty has resistance at 4583-89 range, in case it trades below 4555-4551, bears will have the advantage. The RIL may get selling pressure if it fails to trade above 1901-03 in the first half an hour and the low is below 1885. The run-up in banks likely to continue incase SBI trades above 1589-91 and ICICI above 993. Those who are holding the Idea del from 118 can book profits at 135 as suggested. The Bharti del holders can wait until it stays above 873-71. Incase persons long in Nifty can prune their positions by 50%.

So start buying with a perspective of 6 months in mind and reap the full benifts of investments.

The stock markets are not for BULLS only...?

I am attaching this to recapitulate the anticipation made in advance to make a clear decision in days to come....
In my earlier posting titled-----“The need to press panic button?…. The answer is certainly “no”. The technical analysts, the viewers of this blog might now that the fall could be massive and the levels expected yet to come. So why this cry?- the answer could be the speed and steep fall occurred without warning to many but not to the readers as I clearly stated on The bears are making in………roads?.… The volatility is not because of the expiry of the July but the preparation for a deep cut on the face of bulls by the bears.

As posted, RIL came to 1791, we expected 1785, ITC in bear grip until it trades below 169.
No need to get panic until RIL trades above 1711-09, SBI trades above 1435-39, RCOM trades above 491, Tata steel trades above 585 and Bharti trades above 806-09 levels. So wait for the right opportunity and start accumulating in the blue chips”.

The fall can become an oppertunity and can accumulate in small lots as the Nifty is likely to touch 4075 level as expected earlier. The markets are influenced by external forces but they live short period but OUR ECONOMY & PERFORMANCE that matters at the end of the day.
So those who believe that our economy can do well, can start buying blue chips with special focus on emerging sectors.

Who is sick and who is paying the bills?

The US is facing the problems of Sub-prime sickness and hospitalized for its own reasons. But unfortunately the world is worried over the emperor’s ill health and the kings are paying the hospital bills.
The Indian economy is intact and the emerging markets growth was not questioned but the indices are falling because of the “Global Economy” tag.
The markets will realize soon and chase the stocks in INDIA. But the damage is done and the heart attacks are not accounted as of now every body is looking through some other person’s spectacles. At the end of the day the question is “who is sick and who is paying the hospital bills”.

No Green, All Red?

The world is now under tremendous pressures on Sub-prime issue. Renowned companies involved and struggling to save their face in spite of having experts of top quality failed to save them.
Anyway the number game is to live so long the market lives. The Nifty is likely to open below the support level 4330 and could even touch mid June levels of 4140 immediately. The rampage is a carry forward effect; it should recover fast before it could consolidate further. To such effect, Nifty should trade above 4320 level with 4-5 trading sessions. The RIL has good support at 1792, SBI has good support at 1540-45, ONGC has good support at 833-34, Bharati has good support at829-30, Infy has good support at 1920-35, TCS has good support at 1093-96, Satyam has good support at 459-61, Wipro has good support at 462-59, Tata steel has good support at 620-23, Sail has good support at 139 level NTPC has good support at 161-63, ITC has good support at 158-59 levels.
In case SBI trades below 1485, the market is under severe bear pressure, in that case it should trade above 1540.

Worries about to widen in future?

The Sub-prime issue is not surfaced days back but before two months. The indices climbed high and to higher level even after the news broke. It is now became an issue to brought the prices down and cause anxiety in the minds of the investors. The game plan can be easily understood- the stock prices of mid caps and selective large caps whose upward is not warranted but moved to lure the weak hands to participate. Now every body is talking that the prices are mouth watering but more pain is left as the indices can correct up to 30-40%. Just think about these statements aired and are for whose sake?.
All the leading brokerage houses, MFs and FIIs have their research teams to study the situation but the poor retail investors lack the strength but driven. So one can understand the love and the helping nature of the wealthy and deep-pocketed market operators. One statement, once again “If you are an investor the fall will become an opportunity, otherwise a wiper”.

Governments Infused the Oxygen?

The markets really looking for the Global cues but bears waging their best battle to win, so that they even bring the markets in to bear grip. The Friday up move from lows and to days work is to save the day while waiting to see more unfolds from the Sub-Prime.
I think the markets will fall by its own wait unless bulls take charge of the situation to see Nifty trade above 4401-03 level in the morning first hour. So long Nifty trade below 4391 level is a caution to longs and incase it trades below 4339 no longs at all. Tomorrow, RIL has to cross the high of 1846 and shall not trade below 1818 level to keep faith in the up move. The Bharti shall trade above 863 and high shall cross 876. The two will tell the future tale of bull move.
As suggested, those who have taken delivery in IDBI at around 104-06 level can exit around 139-141 level, in case it trades below 116-114 level can book profits and fresh shorts can be initiated.
Now every body is interested in low volatile & defensive stocks, ofcourse they turn volatile once the retail section chase.
Sorry for not publishing the Monday possibility.