Saturday, January 07, 2012

THE BOTTOMS ARE BUILDINGS!!!!!

The Nifty is in a very narrow band. I posted the same in my earlier posts.The markets are in a sense building the bottom. The strength in the market is intact. The Nifty is getting support at 4700 level.

During my personal interaction, people are interested to buy large caps because of the liquidity. They wanted to invest 2-5 lakhs in one go. Where the tiny stocks which multiply by 5-10 time need separate patience to acquire. The SIP- Systematic Investment Plan is a model known to many market participants. The SIP term is a popular one but a coined a word like -KoI-Keep on Investing with Knowledge of Investment.

The multi-baggers are not possible with large cap and mid cap stocks. The small caps take the advantage of becoming large. The tiny stocks though look weak on fundamentals but they takeoff like fire. It is very difficult to identify such stocks but the small cap universe is quite large.

During my recent discussions, I suggested friends to buy Relcap rather than SBI, since then it gave a 30% return and it has much more potential stored in. The insurance business will give good valuation in coming months. This a sector having very bright future apart from the infra structure.

the market fall from the current levels are very good for long-term investors who can build their portfolio over a period of 12 months. The best case to start buying the value stocks from 4400 level Nifty touches.
The RIL likely to touch 620 level and it may touch 550-585 level but the market as whole looks gloomy but that is not the true colour!!!!.....

No comments: