Today I had expected the market to be range bound as is normal after festive week. But the markets surprising all the analysts and equity strategists, throwing all the concerns down to drain, moved up and up, closing with some mouth-watering gains. This is Equity Market to be precise, "as Unpredictable as ever". Hence it is always foolish to time the markets. The best option is to find the undervalued counters at any time and go for investing. This is not a traders' market and hence traders keep away from it. The markets are always good for investors who play for the Long Term. 80% of persons who come here to generate CASINO like incomes, go home empty handed. Some reach the stage of "Judisthir" of Hindu Epic, "Mahabharata"; ready to sell their Wives. Hence my advise is not to look on the stocks u invest, on daily basis, but to monitor them on weekly basis, except when some crashes occurs. Always keep a trailing stop loss and have an individual targets in mind. I think this is amplified by a SumanSpeaks member( and my long term Yahoo Messanger Friend), Bansal(Yahoo ID-->edgeliver2000) while dealing with scrips. Ask him how he most of the time wins from my recommendations and through his own choice of picks. I remember in one of the scrips he exited at Rs.24 but the scrip rose to more than Rs.34. I asked him don't u feel disappointed!!?? His candid answer was: "I had this target in mind and hence no regrets, the markets always provides endless opportunities". So always be long on the makets...and so ask Bansal for some solid investing ideas. Moreover, in a rising market it is always advisable to keep trailing stop loss instead of normal stop loss. As in this case the SL Price Increases with price of the scrip but when the price of the scrip goes down, the stop loss amount do not correspondingly decrease and thus the investors are saved from a major catastorphe. The market settled above 12,900 for the second time after 16 October 2006 as buying resumed in heavyweight counters, taking the Sensex near to its all-time high of 12,994.45, inspired by the smooth rollover of October derivative contracts. The benchmark indices witnessed a solid spurt in the second half of the day's trading session, as investors developed a strong appetite for Reliance Industries, Bharti Airtel and Dr Reddy's Laboratories, and other index heavyweights. The BSE 30-shares Sensex surged 208.40 points (1.64%), to close at 12,906.81. It had opened with a spurt as buying began afresh after the smooth rollover of open positions in the futures & options segment on Thursday (26 October). The S&P CNX Nifty rose 61.80 points (1.68%), to close at 3,739.35. The market-breadth was positive, with stocks across the board contributing to the rally. For 1,273 shares that advanced, 1,206 declined, and 85 remained unchanged. The BSE Mid-Cap index rose 0.57%, while the BSE Small-Cap index rose a mere 0.09%. The total turnover on BSE amounted to Rs 3,934 crore, higher than Rs 3,408 crore on Thursday. Among the 30-Sensex pack, 25 advanced while the rest declined. Bharti Airtel was the top gainer, up 5.03% to Rs 529.70, on a volume of 4.86 lakh shares. It had attained a new high of Rs 530. The stock was boosted by better-than-expected July-September quarter results. On a consolidated basis, the group posted a net income of Rs 933.82 crore for Q2 September 2006, compared to Rs 520.91 in Q2 September 2005. Total revenue increased from Rs 2,709.10 crore to Rs 4,357.14 crore. Index heavyweight Reliance Industries (RIL), lacklustre till afternoon session of trade, began surging on high volume. The stock advanced to Rs 1,227.10, an intraday high, as demand grew. The stock finished 4.35% stronger, at Rs 1, 226.35, on an aggregate volume of 17.38 lakh shares. The company today announced that it was running the 6,60,000 barrels per day Jamnagar (Gujarat) refinery at full-capacity. I had advised a buy on the scrip, the day its factory was gutted, mentioning how the share prices of companies get elevated when there is a fire in the factory premises. Those who regularly read my Columns must have read that, I am sure. Also, those who are compulsory large cap investors, must have enjoyed this call of mine. Though the scrip rose 4.35% but actual gains will be more as it is a F & O counter. Reliance Communications surged 4.74% to Rs 385.50 on a high volume of 34.61 lakh shares. Hindalco Industries was the top loser, down 0.80% to Rs 187, on a massive 19.86 lakh shares. The company is reportedly said to have hiked aluminium prices by Rs 9,000 per tonne from 1 November 2006. Development Credit Bank ended at a sharp premium of 82.7%, at Rs 47.50, over the IPO price of Rs 26. The stock got listed on BSE at Rs 35.35, and hit Rs 48.65 and a low of Rs 35.35. It clocked a huge volume of 5.76 crore shares. The other debutante, Global Vectra Helicorp, finished with a marginal premium, at Rs 187.40, over the IPO price of Rs 185. The stock was listed on BSE at Rs 175 (also its low), and went on to hit a high of Rs 195. As many as 27.02 lakh shares changed hands in the counter on BSE. A huge block deal for 22.37 lakh shares was struck in the United Breweries counter at Rs 168.50 per share by 9:58 hours. The stock finished 0.83% to Rs 169.45, on a cumulative volume of 23.62 lakh shares. IT stocks rose on renewed buying following a robust set of results from them. The BSE IT index advanced 49.13 points (1.03%), to 4,840.25. Tech Mahindra (up 10.16% to Rs 1,012), HCL Technologies (up 2.22% to Rs 630), Infosys (up 1.48% to Rs 2,103), Mphasis (up 0.20% to Rs 231), Polaris (up 1.65% to Rs 135.55) and Satyam Computer (up 0.60% to Rs 433.10) gained ground. GSK Consumer surged 7.43% to Rs 548, after its Q3 September 2006 net profit rose to Rs 36.2 crore (Rs 30.3 crore). Net sales increased to Rs 301.5 crore (Rs 258.6 crore). Suzlon Energy dropped 5% to Rs 1,296, after it reported 13.3% growth in consolidated net profit for Q2 September 2006 to Rs 235.37 crore, against Rs 207.68 crore in Q2 September 2005. Total income surged 85.4% to Rs 2, 095.63 crore, from Rs 1,129.89 crore. The results for Q2 September 2006 include results of Eve Holding NV, Belgium. Patni Computer rose 2.74% to Rs 451.10, on the back of a solid set of results. Patni Computer's consolidated net profit as per US GAAP rose 33.4% sequentially, to Rs 102.40 crore in Q3 September 2006 from Rs 76.60 crore in Q2 June 2006. Consolidated revenue, as per US GAAP, rose 6.1% sequentially to Rs 697.10 crore in Q3 September 2006 from Rs 656.10 crore in quarter ended 30 June 2006. Operating income rose 46.4% sequentially, to Rs 115.30 crore from Rs 78.60 crore. Graphite India jumped 6% to Rs 305.50, after it scheduled a board meeting on 30 October 2006 to consider a sub-division of shares. It is to be noted that some days back someone on SumanSpeaks group recommended the stock. The fortune of this stock is linked to most of the time fortune of the steel industry. So it is not necessary to go overboard and buy it just on the news of stock split. Those who are willing to take risk can accumulate small amount and sell the day after the split date is declared. I have very bad experience with Stock split and bonus issue related problem. Once I got bonus shares 6 months after the record date and for another company, I got splitted shares when the market tanked more than 2000 points. Hence these days I try to remain aloof from both the cases, unless the company is good and is committed to deliver the bonus shares or splitted shares within a short time. Ondeo Nalco surged 9.35% to Rs 740, after its US-based parent announced its intention to delist shares of the Indian arm by reverse book-building. The US-based parent has decided to buy the balance stake (20%) through a reverse book-building process, while setting a floor price of Rs 724.90 per share. Hence if anyone is holding exit the shares on Monday. Sona Koyo Steering Systems jumped 10% to Rs 70.65, on renewed buying. The company reported 50% growth in net profit for Q2 September 2006 to Rs 5.64 crore, on 66% growth in sales to Rs 138.49 crore. U know this is Karishma Kapoor's husband's company, as far as I remember( please correct me if I am wrong)--what I mean to say that Kapoor's are major share holders of the company. So Karishma in Sona Koyo.....? Keep accumulating for a decent target of around Rs.85-Rs.90 in the short term. Bank of India gained 5.41% to Rs 164.55, after it reported 60% jump in net profit for Q2 September 2006 to Rs 212.13 crore (Rs 132.18 crore). Net interest income rose 46.7% to Rs 849.35 crore (Rs 578.63 crore). Sical Logistics slumped 10% to Rs 231.95 after the firm's September quarter net profit fell 64%, y-o-y. The company reported a net profit of Rs 6.12 crore, compared to Rs 17.13 crore a year ago. So exit the counter fast.....do not look here and there!! Cummins (I) Ltd, Zenith Fibres Ltd and Paramount Communications Ltd almost reached my targeted price. So book partial profits [at least 80%] on these counters and again enter at lower levels. I had adviced profit booking in the newly listed Development Credit Bank through Yahoo Messanger. I hope most of u have done that above Rs.40. Those who have not done that do it on Monday, as the company is just rising on Banking sector hype just like BOI rose today even after posting disappointing results. Or u can hold with a SL of Rs.45. Yesterday, most of my recommended picks did well, with Pratibha Industries Ltd and Dhoot Industrial Finance Ltd recommended some days back on my blog, hit the buyer freeze. Also Gateway Distripark Ltd( GDL) recommended some days back at Rs.167 is also doing well. Keep holding with a SL--->Rs.174. Yesterday, the most surprising element was that, DCM Shriram Consolidated Ltd closed almost flat inspite of a noted Daily came up with a front page news of Land Sail. Yesteray, the company officials confirmed about its Real Estate venture on NDTV. It is also said that it is open to selling the 37 acres of land at an astronomical price of Rs.1600--Rs.1800 Cr. The company said on NDTV "That a number of parties have expressed their desire to develop this land". Giving subtle hint that the company is open to selling of the land. The company's retail foray is doing good. I think the stock has limited downslide.Keep holding with a SL of Rs.89. It has expanded its capacity in the fertilizer business and its other businesses are expected to do well according to the management who appeared both on CNBC's Awaz and NDTV. If theland is really sold at Rs.1600Cr-Rs.1800 Cr,as mentioned in The Times of India, then the stock could reach a price of at least Rs.400-Rs.500. Look at Uitech Ltd, where it reached from where....!! Coral Finance & Housing Ltd and Gravity (I) Ltd closed with huge volume to attest to the fact that still the name of Real Estate and Hotel business are able to draw crowds of investors in these spaces. The former closed with more than 7% gain on the bourses. A web-site: http://www.eindiabrokers.com/ [Extreme right hand side column], have placed my Research Report on the company.
Gravity(I) Ltd is showing 100% delivery on the Bombay Stock Exchange web-site. Thus the stock is being accumulated by some quarters, everyday at this price; I have been observing this from the beginning of this week, after the news of its Real Estate, Hotel, Retail and Home furnishing foray was broken by me. I am looking at some solid gains on the counter, as it is trading at half the Book Value price. The stock has the potential to reach Rs.40--Rs.50 if the company is able to exploit the new developments in true sense of the term.
Stovac Industries Ltd, a little known stock in the Textile Machinery sector, notched up solid gains in the morning, before cooling down a bit. One of its competitor Lakshmi Automatic Loom Works Ltd hit the buyer freeze yesterday. Another of its competitors, Lakshmi Machine Works Ltd is trading at a price Rs.33582.55, which is beyond the reach of small investors. Hence the obvious choice of Stovec Industries Ltd in this space. This company has near monopoly in some of the fields it operaters. I think this stock has a great potential in the days to come, in view of selling one of its divisions and streamlining its operations. The textile machinery space is going to attract investors' interest in the days to come as India will be major force in the textile Sector, after most of the companies implement TUF schemes in toto. Compare its price with its nearest competitor and u will understand what I am saying. Its book value is whooping Rs.109. Look for some solid upsides in this counter in the days to come. The company came out with some solid results for the September, 2006 quarter. Hold the counter with a SL--->105. The Nikkei average fell 0.85% on Friday as investors grabbed profits in Canon Inc., while Asahi Glass fell on a Credit Suisse downgrade, dragging other glass makers down with itself. The Nikkei declined 142.53 points to 16, 669.07. The Hang Seng index lost 56.86 points (0.31%), to 18,296.88. As per provisional data, FIIs purchased shares worth a net Rs 283 crore on Thursday (26 October), when the Sensex had risen 75 points. Their net inflow was Rs 169 crore on Monday (23 October). The Sensex had lost 114 points, on the same day. FIIs were net buyers to the tune of Rs 1,196 crore in index-based futures on 26 October. US stocks Stocks pulled back Friday after the Commerce Department reported that the economy grew at the slowest pace in more than three years and stirred concern that a desired soft landing in the economy might prove elusive.Investors have bid up stocks sharply in October on the notion that the economy is slowing, but not in a way that would threaten corporate profits and consumer spending. Investors are also counting on a gradual slowdown to reduce the threat of inflation and convince the Federal Reserve to lower short-term interest rates. While investors expected Friday's advance reading on gross domestic product would show slowing growth, the report underscored concern that a cooling housing market could spill over into other parts of the economy.The Dow Jones industrial average was down 73.40, or 0.60 percent, at 12,090.26. The Dow Jones industrials achieved a new high close in each of previous four sessions and 13 of the previous 18 sessions. Broader stock indicators also moved lower Friday. The Standard & Poor's 500 index slipped 11.74, or 0.85 percent, to 1,377.34, and the tech-heavy Nasdaq composite index fell 28.48, or 1.20 percent, to 2,350.62. Technology stocks retreated Friday afternoon following a report from Goldman Sachs Inc. that warned of weakness in orders for computer parts. Over all, the major indices showed gains for the week despite Friday's decline. The Dow rose 0.73 percent for the week, while the S&P gained 0.64 percent and the Nasdaq added 0.36 percent. Despite the overall advances in the market, the S&P stands about 9.8 percent below its high close of 1,527.46 and the Nasdaq is even further off, at about 53 percent. All three indexes had peaked in early 2000 before plunging in response to the dot-com bust, recession and the aftermath of the 2001 terror attacks.The GDP, the broadest measure of the economy, showed growth slowed to 1.6 percent in the third quarter; economists had been expecting a 2.1 percent expansion. The report identified the slumping housing market as a significant drag on growth, as money pumped into homebuilding fell by the largest amount since 1991.Subodh Kumar, chief investment strategist for CIBC World Markets, contended that the markets moved lower Friday as investors tried to balance expectations about the economy with Federal Reserve policy and oil prices. The central bank on Thursday left short-term interest rates unchanged, as expected, and offered a little-changed opinion on the health of the economy. "The fact that there is a moderate pullback tells you that the overall market risk is not extreme," he said.Declining issues outnumbered advancers by about 2 to 1 on the New York Stock Exchange, where consolidated volume came to 2.74 billion shares compared with 2.76 billion shares Thursday. The Russell 2000 index of smaller companies was down 10.20, or 1.31 percent, at 765.84. Overseas, Britain's FTSE 100 ended down 0.39 percent, Germany's DAX index was down 0.34 percent, and France's CAC-40 fell 0.69 percent.[With inputs from the Internet] More in the following postings..... Best wishes, Suman Mukherjee India. www.eindiabrokers.com www.bcozindia.com www.sumanspeaks.blogspot.com
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