Jan 31, 2008 09:55 PM
4499 Views
(Updated Feb 08, 2008 11:18 PM)
*Another sensex and nifty crash in January 2008.
Reasons -** Indian market was overheated and thats why it take a breather.Almost 25% correction
happened from the top level.Short term trend is moderate; however clouds of bearishness hover
over intermediate trend, due to many fundamental reasons, which are as follows:
*1. 4-5 years Bull run was mainly liquidity driven(FII money).India recived huge amount of dollar
inflow in terms(Dollar falls 25% against rs. in 1 year) of FDI and FII investment which is now
showing a sign of slowdown and tiredness.
Ban of P-Notes is a major dampener and will further curb FII flow.
Valuation of many sectors/shares is higly overstreched and can't be justified fundamentally.
POSITIVE SIGNS- **Retail investor's participation is visible now in a big way which was absent during
the Sensex rally from 8000 to 20000.
*How to cope with new situation- Nifty seems to be moving 5000 to 5500 levels. So make your
portfolio of 5-10 differnt types of stocks.**Choose from following sectors(Given Below) and stocks
of your choice.
*Invest atleast for 1 year.Invest 30% to 40% of your capital in different stocks at a time
*and accumulate the same stocks on every dip.Also invest your 10% money(at least) in Mutual
*Funds.
Never panic sell your stocks.
Real Estate - DLF 800+( Target price 1400+), GMRINFRA 170+(Target 400+), Parsavnath(500+) etc.
Banks - ICICI 1140(Target 1550), IDBI 114+(Target 180+), AXIS BANK 1100+(target 1650+) Etc.
Steel- JSW Steel 960+(Target 1500+) Jindal steel 2300+(3600+), Tata Steel(Target 980+).
Power- Suzlon 305+(Target 550+), PTC india(Target 240+), Power Grid 102+(Target 180+).
Sugar stocks - Balrampur Chini(Target 135+), Sakthi Sugars.
IT Shares- TCS(Target 1300+), Infosys(Target 1900+).
Petroleum- IOC(Target 850+), RPL(Target 350+), ESSAR OIL(Target 380+).
Other stocks to watch and Buy- Punjlloyed(Target 750+), BhartiAirtel(Target1200+), Rcom
(Target1100+), Unitech(Target 600+), Allahabad Bank( Target 155+), TTML(Target 70+),
Andhrabank(Target 150+), Yes Bank(Target 320+), DCB(Target 200+) .Mutualfunds of SBI also
good.**Those targets may be achieved in year or even sooner.
Never look where Sensex or Nifty is going.Not all scripts running with them.
*If you can invest 4-5 lakhs in above mentioned stocks and for a time period of 5-7 years, you can surely expect at least 20 lakhs plus.
*Note - Please invest your spare money only.Invest and forget.Never trade in front of screen.Never trade intraday.Intraday traders and screen traders never make money.
( I myself having stocks of Jindalsteel, Suzlon, Ispatind, JPassociates & DCB)
