Wednesday, June 18, 2014

FII/ FPI and DII Trading Activity
The investors today were asked to buy good shares, which has a story like IVRCL Ltd (rights issue, PM's billion dollar infra-fund, CDR scheme, etc) or Suzlon Energy Ltd (interest rate waiver, increase in time limit to pay debt, Listing in LSE, Rise in Oil price generally helps renewal energy companies, etc)  or Shiv-Vani Oil and Gas (Rise in crude oil price is positive for the company) taking the advantage of the dip, as the market did not break the critical support. You should  note that any CDR scheme generally gives interest rate waiver to the borrower---this is one of the greatest advantage of this package. Also, before any Rights Issue the share price of any company rises. These are basics of any equity investing--follow them and make money. 

Moreover, many will point to the March, 2014 quarter results of IVRCL Ltd and say that that they were bad. But, my dear, you need to read  between the lines, why they were bad or will they improve in future. I cannot tell exactly the reasons behind this, in an open forum due to some restrictions, but think about it, pivoting on the CDR package. Did you get right answer.....?

But, unfortunately some  news channels and over smart marketmen were bent on scaring the genuine investors. If the small investors fall prey to these people, then what can be done!! If everyone becomes a doctor, then who will sweep the streets?

I am sure those who have bought these scrips today, will make gains in the coming days,  as pre-budget rally has already started. Allied Digital Services Ltd (Rs.21.40) has started to hit the buyer freeze and this would continue for some more time. If some stocks like Richa Industries Ltd (Rs.22) is not performing, inspite of having fundamentals, then there is definitely some problem in the company in the short term and you should come out of it and invest the money in some other counters.

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