Never sell the Enterprise…

The markets are facing rough time but the ray of hope lies in the growth story. The markets are likely to bounce back to new levels and even cross the High in the months to come as the dust will settle after two quarters. The India’s economy growth is intact and the corporate performance will improve in future. The internal consumption is huge and the breadth is increasing by strength.

The Nifty is strong at 4500-4600 levels. The range suggested earlier (5200 to 6300) is still a valid range as the FII’s have heavily from 19th Sep-07 to 16th Oct-07, invested at the 4500-5700 Nifty levels. The FII out flow is a cause of concern at this point in time but not at all a worry some event.

So long Reliance stays above 2430-50 level, ICICI stays above 1035-29 level and the ONGC stays above 1000-990, SBI stays above 2020 and the Bharti stays above 810 level the markets enjoy the bulls support. Small aberrations through opportunity to buy but not to sell.The HDFC, HDFC bank, RCOM, REL, NTPC, SAIL, Tata Steel are going to catch up in future. The Techs are bottomed out and they have limited space left to correct. The correction could not change the bottom supports of ITC and HUL. The rest any way change their weight age time and again as they could through no material impact on the Nifty levels.

The immediate support levels for Nifty are at 5080 and can easily touch 5680 with or with out global cues that can favour our markets. The US recession will become a boon to us as they out- source services to products. The Auto and auto components business will benefit in future will get favourable news from June-08. The bad period may last for 6-9 months; consider this as an opportunity for a fine consolidation period and an excellent base for the next boom. The market participants know that markets observe periods of consolidation and a vertical rise cannot last longer.

So Never sell the growth story of the enterprise but sell the stock at higher levels and re-enter at the lower levels. The investment at higher levels is a valid proposition for the operator as it could through some opportunity to offload large chunk of holding but not for the small/retail investor. “Never chase stocks - Never miss a Growth Stock”.