Market Musings:

Yesterday while the Indian and Asian markets were up, emerging markets, comprising of Brazil, Mexico and Russia fell. Indian markets raced ahead to garner a smart 165.13 points on the SENSEX Today the most of the Asian markets are in the red. Japanese stocks fell after the dollar slid against the yen by the most since July and an index of Philadelphia-area manufacturing suggested an economic slowdown in the U.S. may be spreading. I do not know why everytime we have to look at the US markets to find a direction. I have mentioned a number of times in my postings that Indian economy is more or less domestic driven unlike Japan or South Korea or some other South Asian Country. Hence, Indians have to ignore what a small province in the US is doing( Read Philadelphia-area). During my interaction with a number of Analysts I have found that, most of them are of the opinion that these are just Media caricatures to grab the eye balls and it is better if we overlook them in the short term. Some time back there were news that US market were having a danger of inflation shooting up, now media is slowly building the hype that there might be recession in the US. These kinds of assesment are based on too many "Ifs and Buts"-- primarily based on the premise that if the US economy slows , Indian and Chinese economies will go "drain"....I cannot eat this logic a number of "white skinned" economist are throwing at will in some media channels. Indian markets are still reeling under "Bull Onslaught"..and FIIs are conitnuously fuelling this "mad rush for gold. If the US economy is slowing down then US could go even further and cut the interest rate to boost consumer spending. But definitely there is no immediate danger of recession in the real sence of the term. Today the markets are likely to be Range Bound and may open in RED. But later on as the day progesses, the broader market will be strong and the markets will recover as there is no major cause for the Indian markets to down clowning the other Asian or US markets. Keep ur focus on the Mid and Small cap counters. The Asian market should recover at the end of the day. Hence, I do not see too much blood bath in the Indian markets---may be some drop of 50 to 100 points at the end or vice versa. Wednesday's S..L...Ltd at Rs.42 was SPL Industries Ltd ---a textile player and should Cross Rs.50 within a short time. Look for the Steel and Banking counters. FII were net buyers yesterday, so keep tension free!!! Yesterday, Advances were 54% and declines were 44.4% of the total trade--so "Bulls" and "Bears" are evenly balanced in this "Tug of war. Crude oil is still below $65 per barrel. Look for metal and Bank counters for the short term. Q2 quarter results will be strong and hence the markets are looking bullish as usual----there is a strong "Bullish" undercurrent. Buy: 1. Essar Shipping at Rs.27-->Medim Term play for a target of Rs.37 2. Avon Organics Ltd at Rs.25---> Short and Medium term play with a target of Rs.42 etc.(Please go through my previous posts). Look for Research Rreport on this company on next Monday. 3. SPL Industries Ltd at Rs.45 for a target of Rs.54( very short term). 4. F...P...L....at Rs.85 for a target of Rs.110 and Rs.150. 5. Uttam Galva steel Ltd for the short term for a target of Rs.42.

Intraday:

Gabriel India Ltd at Rs.35.5 Intra-day only for a target of Rs.39--Rs.40. There is unconfirmed news, that it is selling its Mulund (Mumbai) property at Rs.85 cr.Engine bearing division is being demerged into separate company. [http://stockstorm.wordpress.com]

Hold: 1. Tilaknagar Industries Ltd--Look for some spot news on Monday. 2. California Software Company Ltd 3. Samkrg Piston and Rings Ltd 4. Chandra Prabhu International Ltd--Do not take fresh positions till the meeting is over. More in the following mails..................... Best wishes, Suman Mukherjee India.