WINNING STROKES: THINK DIFFERENT:

The Nifty crosses my first target of 5300, which was given almost 15 days back, now the Nifty is proceeding towards the 2nd Target of 5400. With most of the market indicators looking positive, we should not see too much problem for the Nifty to cross this mark. In fact China’s move to loosen yuan’s de-facto peg to the US dollar over the weekend set the world market soaring today. 

There is an important line which I read somewhere, "Trade in Bonds and invest in equities"...People lose money in equities because, they depend on "Stolen data" and "Brain likes to take the shortest route", because they fail to understand that  investing depends on (i) Quality (ii) Time and (ii) Commonsense. Always try to avoid those companies which have (i) Me too business model, (ii) High debt and (iii) Huge Capital Requirements. Moreover, do not forget the golden adage, "A good company is not necessarily a good stock to invest". I have never met a man who could forecast the market over a period with 100% accuracy. Hence if anyone says, " We can predict the exact buy and sell levels, then he is simply fooling". Also, Chartical Analysis has also limited use, and it is said, "If past history was a strict guide to make money from the markets, then librarians would have been the richest man on the earth". Therefore, investing is simple but not easy--it needs lot of hard work and source based easy.

The best time to invest in a stock is when no one is looking at it, (Sanguine Media, Northgate Tech, XL Telecom and Energy Samtel Colour, Phoenix International,  etc.).

Market Cycle:

Bull markets are:

Born on Pessimism

Grow on Skepticism

Mature on Optimism

and die on Euphoria.....so the earlier buy call on Nifty  around 4800, was based on too much pessimism on the Indian markets. Now the target of 21, 000 on Sensex was based on the Q1FY11 earning of the companies, which are expected to be good. 

Phoenix International Ltd hit the 20% buy freeze today, as the company ventured into Oil and Gas business. 

There was partial withdrawl of strike in the premises of Ambalal Sarabhai Enterprise Ltd. Within the next 30 days the company would start production in its two plants and at the same time other worker related issues will be solved. The stock was buzzing on this news since the last few days. 

Refex Refrigerants Ltd is venturing into Air Conditioner making business. The company has already done a turnover of Rs.10 in the month of April, 2010. The sales for the June is picking up slowly. 

Elecon Engineering Ltd made a new monthly high today as the stock reached Rs.89.30. The scrip was recommended to the Paid Groups around Rs.72-73..only some weeks back. 

XL Telecom and Energy Ltd touched Rs.37.20 before cooling down a bit. The scrip should be accumulated on all declines for a target of around Rs.150-160.

Ennore Coke Ltd recommended to the Paid and Free Groups around Rs.13--17-32, reached Rs.103 today. The stock has given good money to the patient investors. 

Hilton Metal Forging Ltd is venturing into Agri-trading business according to the sources close to me. The company would start the same within the next 20 days. This is expected to boost revenues for the company. 

Accumulate Samtel Colour Ltd as it is a turnaround case. The stock should give decent returns going forward.