The market should consolidate as this stage:The Small, Micro and Mid cap stocks are getting unnecessary battering: Garnet Construction Ltd is coming up with a Preference Issue at a "Much Higher Premium" to the market price so start accumulating: Premier Explosives Ltd should be accumulated at the current levels: The overall markets should consolidate at this stage of the market, with minimum downslide left. The large and select mid caps are seeing buying as the punters and investors are picking stocks as they look attractive after such a huge correction. The underlying trend in the market is still bullish and now slowly and steadily buying should emerge in the small and micro-cap space. This space is showing unnecessary sell off when this is the space which should be bought as the stocks here are trading at a very cheap rate in comparison to the large caps. I have started purchasing small amounts in every fall using the Ruppe Cost Averaging Method. In this method of investing, one invests a fixed quantity of money everyday or everyweek or everymonth. When the share price goes down, it gives them good amount of shares and when it rises up, the number of shares decreases, limiting his losses. Today Engineering & Construction major L&T rose 1.5% to Rs 1477. The stock rose for the second day in a row after a steep recent fall. The government’s thrust on the infrastructure sector bodes well for the engineering & construction major. Era Constructions rose 3% to Rs 310.50, after the Reserve Bank of India said foreign funds can now purchase equity shares and convertible debentures of the company up to 40% of the paid-up capital of the company through the primary and secondary markets in India. The other real estate stocks should also start to rise, as most of them in the small and mid cap space have corredted by huge amounts. The companies should come out with good results for the March, 2006 quarter as the new provisions of the budget are applicable only in FY-07-8. The land prices are shooting over the roof and most of the companies are sitting on huge real estates, whose prices can either rise up or stabilise at the current levels. Besides in future the real estate companies will get benefit from the fall in the price of Steel and Cement( if any). I am very bullish in this sector and now I am thinking of parking at least 40% of my total capital in the real estate stocks. I HAVE CONFIRMED NEWS THAT GARNET CONSTRUCTION LTD IS COMING UP WITH A PREFERENCE ISSUE AT A GOOD PRICE WHICH IS AT A "VERY HIGH PREMIUM" TO THE MARKET PRICE. BESIDIES THE COMPANY HAS ALSO PURCAHASED LAND IN BOMBAY WHERE THE CONSTRUCTION IS ABOUT TO BEGIN. THE COMPANY IS PRESENTLY GETTING REVENUES FROM THE SALE OF THE PROPRTIES IN LONAVALA. IT HAS RECENTLY SIGNED A CONTRACT WITH AN OVERSEAS COMPANY, WHICH WILL GIVE THEM MORE IMPETUS IN ITS VENTURE. ONE CAN SLOWLY ACCUMULATE THE STOCK ON ALL DECLINES, USING RUPEE COST AVERAGE METHOD. Premier Explosives can also be accumulated at the current price of around Rs.44 for some wonderful gains in the days to come. Keep holding Zigma Software Ltd, FCS Software, PSTL, Cinemax Ltd, etc. It is that people do not accumulate the stocks hearing the analysts on TV, and they start purchasing when the stock has already risen up. The Rally which started in the last year, will peak out in late May, 2007, when we can see some correction. So do not wait for the analysts on the TV Channels to give u buy signals, as at that time they will be selling to you. But do not buy in one go but use staggered approach... More in the following positings...............I am facing some problems on the internet front and this update is being done from a Cyber Cafe. Also I am busy in the preparations for a conference for a health care company, hence regular updates will be affected on this blog and in the group. Best wishes, Suman Mukherjee India.