Indian markets on a high tide

For the past 5 days the Indian markets have been extending profits with positive response from all the sectors. Market may consolidate due to sell off from investors. If you are holding any stocks waiting for the right time to exit this is the right time to book profits. You can re-enter the the stock after some correction or you can take fresh position in your identified potential stock.

Ride the tide wisely and safely !!!

A pause for the D-Street massacre

Today(24-11-2011,Thursday), the Sensex & Nifty took a pause for its 9 day continuous massacre. The grant of bail for all the corporates accused in the 2G scam added its penny to this relief rally. Experts are advising traders to be more cautious because of no developments in euro zone debt issues. They are suspecting that euro zone crisis may trigger the recession in US. When come to investors, as one can't predict the bottom of a stock price, accumulate selected stocks on dips.

Here are some of the stocks which are looking attractive at current price-

Stock                                               Comments

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1.Tata Steel               -Ve:Euro zone issues & impact of land mining policy

                                  +ve:Leader in metal space & excellent dividend paying record

2.Spicejet                  -Ve: High debt, poor results

                                 +Ve: Growth sector, awaiting for FDI policy & expansion at faster pace

3.Coal India              -Ve: impact of land mining policy

                                 +Ve: One & only in its sector & excellent results

4. Muthoot Finance  -Ve: Plunge in gold price(which is unlikely in current situation)

                                 +Ve: Excellent growth & results

5.HCC                      -Ve: Heavy loss incurred due to halt of Lavasa project

                                 +Ve: Hopes of raising funds for Lavasa through IPO.

Continued....

Stocks to watch

All most all major indices touched 52 week lows. Valuation wise most of the stocks looks healthy thus making them attractive. Its safe bet to pick only large cap blue-chip stocks along with some mid caps. Here are some stocks to watch.

1. IDFC

2. Suzlon Energy

3. GVK power & infra

4. HCL tech

5. TCS

6. Wipro

7. TATA steel

8. M & M

9. TATA motors

10. DLF

Disclaimer : I neither hold any major position in the above stocks nor i have any commitment to them. The above ideas mentioned are my personal opinions. Investors are advised to do a self research and consult your financial adviser before investing.

Fear driven markets

With the 3 day continuous destruction of the global markets, it is obvious that there must be a relief rally, which is already on cards and the same happened with global markets on Wednesday. The rally was also backed by the fed announcement of unchanging the interest rates till 2013 .If you think its celebration time and park your investments, then you are digging your own grave. Mega investor Mr. Rakesh Jhunjhunwala in an interview said that in this turmoil situation its better watch markets for 3-4 days instead of predicting the bottom.

Today the US markets opened in red and fell sharply with the fears of french debt default. French banks holds 350 million USD italy's debt on their books. So, indian markets may be plunged on friday's trading.

The world is eagerly waiting for the important fed meeting which will be held on August 23rd 2011, in which hopefully a resolution will be brought over the debt crisis. That will be the major market trigger as on now.

Global markets lost ground

Due to the fears over US and European dept crisis, all the global markets trembled with fear by nosediving on Friday(5-Aug-11). The Sensex lost over 390 points, recording a intraday low of 600 points, which is the worst one day dip since Nov 2008.

Some market analysts are saying that, these are the signs of double dip recession. Even tough US congress passed the bill for extending the debt limit, its like a temporary relief to the pain. The raise in US unemployment added fuel to the issue.

I think this debacle is not over with this black friday. The global markets will still remain wildly volatile for the next couple weeks, untill any major relief comes to US & European debt issues.

The climbing down of crude prices may give some positive outlook for oil companies.

So if you need to stay invested in markets watch out for triggers and invest. As an alternative investment gold is now the choice of many investers, that pushed its price to all time high. Its an alarming situation for gold. Once the global markets back on track gold will return to Rs.2100-Rs.2500(per gm) . So, becareful before investing in gold. Prefer gold ETF's over physical form.

Happy Investing.