Strong growth to take markets higher Anand Rathi / July 30, 2010, The Indian equity markets continue to show strength and have touched intermediate highs, despite weak global cues, particularly from the euro zone. Year till date, our markets have given positive returns and need to be viewed against the global headwinds leading to risk aversion. Going forward, while the international economic scenario and data points coming out of Europe and the US will feature prominently on the minds of investors and drive foreign flows into India, we expect the strong domestic economic growth to continue and the recent out-performance exhibited by the Indian indices to sustain. While inflation has been a cause for concern, it is expected to peak out at around current levels and ease off during the second half of the year. Corporate earnings for the first quarter have mostly been in line with optimistic expectations. Going ahead, Nifty earnings are slated to grow around 25 per cent for 2010-11 and 20...
Posts
WINNING STROKES: THINK DIFFERENT: So how will the markets behave today, with the US markets down!! It is good to short the market with a SL at 5450 or go long on Nifty with a target of 5500. What are charts indicating....all these and more to the Paid Groups only. There were some selling pressure in the IT and Technology stocks, as the government on Wednesday modified rules for telecoms operators and equipment vendors to address security-related concerns. The July series ended above 5400 mark, up by about 1.5%, huge rollovers were witnessed from Godrej Industries (86%), Tata Tele (73%), Apollo Tyres (72%) Suzlon (80%)and Core projects (85%) while ONGC, HCL Tech and Siemens reported low rollovers. The volume remained good, crossing 1.65 lakh crore for the day. For the July series telecom, banking, realty and IT witnessed gains while the healthcare and oil & gas sectors declined, the August series too is being expected to remain in somewhat similar fashion. Finally the July seri...
WINNING STROKES: THINK DIFFERENT: What will happen to the markets from here?? Any guesses?? This is only for the Paid Groups?? XL Telecom and Energy Ltd (now XL Energy Ltd) moved up in yesterday with good volume. There are some rumours in the market that a brokerage house might have recommended the same. The company has been allotted 50 acres of Land in Hyderabad for the mega project. The value of the land is more than the current market cap of the company. Besides many do not know that it is also into Ethanol making. It has an enviable order book position and the company is expected to declare the results in the 1st or 2 nd week of August, 2010. If we look at the earlier results of the company we would find that the results were progressively good. Just imagine what will be the price of the scrip if it only gets a moderate P/E of 10, in the following fiscals. I s the Sanguine Media Services Ltd, thinking to re-open its Mumbai office? Sanguine Media Ltd recently informe...
Yesterday I was mentioning about the "Stress Test" of European Banks and an ensuring rally in the world wide bourses. Traders were also cautioned not to go for deep shorts, yesterday: Look what a Pink Daily has to say, today: Stock buying hits bull market record in US Mutual funds, pensions and endowments are spending more on stocks than at any time since the start of the bull market, just as individuals grow the most pessimistic in a year. Institutions pushed equities up to 68% of their holdings in July, the highest level in 15 months, from 63% in April, a Citigroup survey showed. The ratio of bullish to bearish respondents in a survey by the American Association of Individual Investors has fallen to 0.68, the lowest level since July 2009, based on a four-week average. The last time money managers and individuals were this far apart was in March 2009, before the Standard & Poor’s 500 Index began its 63% rally, according to data compiled by Bloomberg. It...
Last week I received a number of good mails from well-wishers, but this mail from my brother Sardar Manjit Singh is chosen to be the best: Just look at the affection in the mail; seems he is my own brother: However, the mail is edited to keep some matters confidential as the contents were too personal: Dear Suman Bhai.. Good Evening..!! I m sure this mail will find u happy n healthy. I was thinking of sending a mail to u since last one week..today I have finally succeeded. Last two months were really trying but U were there to guide me, my faith in almighty Lord n Hope..charged me with positive energies. My old parents health was another issue..and I steeled my innerself to carry on. Suman bhai..there were some other problems on my n my son's health front also but I don't want to fill my email to u with all this...all I want to say is I m t...
WINNING STROKES: THINK DIFFERENT: European Banks pass stress tests and boost optimism over the health of global economy. Now we can see a rally in the global boures in the days to come. Telecom and Steel stocks are likely to steal the limelight. The next target for Nifty should be 7000 and hence avoid deep shorting of the markets or you might get trapped. Prajay Engineers Syndicate Ltd is coming up with results on 30th July, 2010. The stock is buzzing on this news and could touch Rs.37-38 before the results, according to some veteran marketmen. This stock was ealier reocmmended by ICICI Direct.com. I have also recommended the scrip a number of time and asked all to accumulate on dips. The stock fell to around Rs.27-28 some days back, when many have accumulated. Galada Telecom and Power Ltd hit another buyer freeze in the opening trade. Please book some profits in the counter as the stock is looking stressed on the daily charts. Profits should always...
WINNING STROKES: THINK DIFFERENT: The markets (Nifty) as expected broke 5410 and marched ahead. The BSE's 30-share Sensex and the NSE's 50-share Nifty managed to shut shop above the psychological 18,000 and 5,400 levels, respectively in trade yesterday. All the sectoral indices of the BSE, except software counters, edged higher with consumer durables, metal and auto lot leading the gainers list. Decline in the weekly food price inflation to 12.47% during the week ended July 10 from 12.81% in the earlier week also lifted investors' mood in trade today. The reading was considered important ahead of the Reserve Bank of India's (RBI) scheduled meeting next week. The broader indices, however, underperformed the benchmark indices in trade. It was mentioned in this blog last week that, "It is only time that 5400 would be broken on closing baisis". On 22nd July, 2010, also I mentioned that there is a huge support around Rs.5250--5380, which will be difficult to break...
WINNING STROKES: THINK DIFFERENT: My recommended Galada Power and Telecom Ltd hit another buy freeze on the bourses, as the bulls rushed to buy its share after going through the current news. Those who are still holding, can continue to hold the scrip. I am also holding some in my personal account. Steel makers were the biggest gainers in metal space yesterday on the expectations that China may reduce the local steel producers count to around 25% of the current total. Apart from this, optimism over no further slide in the spot prices of the steel also boosted investor confidence. I had recommended Tata Steel Ltd to the Paid Groups with a Target of Rs.540, again yesterday. Sathavahana Ispat Ltd was also recommended to the Paid Members a couple of weeks back around Rs.43-44. Many do not know that Sathavahana Ispat Ltd is an integrated steel plant. There is very good news for the shareholders of XL Telecom and Energy Ltd as my sources have confirmed that from now on, the compa...
ONE OF THE MOST UNUSUAL AND PROBABLY THE BEST MAIL, IN THE LAST COUPLE OF DAYS: THAT'S THE SPIRIT....LOVE YOU ALL....!! Hi Mr. Sumanji - Stand for Election, be assured of my Vote..!! Hi Mr. Sumanji, I may be out of market with losses mounting over my head. Bad investments in my earlier style cost me to watch now in sideline, but one thing is sure, I never-NEVER FAIL to read your blog. You are bold, YOU HAVE THE STAMINA to take on rascals, because you are sincere, and ever loving to help poor investers. Your inspiration, your confidence has put many a investor warm balm, even after severe beating in the furious stock market. Let The Almighty Be With You, and bless you abundantly. (By the way, do you sleep in your sleep, or work even in your sleep. I HEREBY CONFOR ON YOU DOCTORATE IN STOCK MARKET, FOR EARTHING & DIGGING OUT GEMS with no tools, but just using fully t...
Obama’s bull market intact as gridlock signals gains By Bloomberg NEW YORK: Growing dissatisfaction with US President Barack Obama before this year’s elections is good news for stock investors, if history is any guide. The Standard & Poor’s 500 Index has surged 48% on average starting in the second year of each US presidential term, measured from its lowest level through the high next year, according to data going back to 1928 compiled by Bloomberg. That compares with trough-to-peak gains of 38% in other years. An advance this year will come after Mr Obama already presided over the biggest rally during the start of a presidency since Franklin D Roosevelt in the 1930s. Bets on Intrade show a 55% chance of Republicans taking control of the House, enabling them to block Obama’s policies. That may help prevent a bear market after equities tumbled as much as 17% in the past two months, says billionaire Kenneth Fisher. “I envision a rally from before the mid-term elections,” said Mr ...
WINNING STROKES: THINK DIFFERENT: Galada Power and Telecom Ltd hit 2nd consecutive buyer freeze. The stock was recommended long back to the Paid and Free members. Another of my earlier recommendation, Kernex Micro Systems Ltd hit the buyer freeze before cooling down a bit. The stock hit the circuits when there was a railway accident. Is there a correlation between the two. My earlier recommended Garnet Construction, Associated Alcohol and CHD Developers Ltd hit the buyer freeze. While ABC India Ltd which was recommended aggressively a couple of years back, at Rs.32-33-39, touched Rs.145.40 as it hit the upper freeze. Hence you multiply your wealth by more than 4 times in just 2 years--isn't it amazing for long term investors?? Silverline Animation Ltd also hit the buyer freeze. This is a slap on the face of those persons who wrongly were accusing me that I recommended Silverline Tech at Rs.120. In fact Silverline Technologies Ltd after my recommendation around Rs.4.5-Rs.6-Rs...
WINNING STROKES: THINK DIFFERENT: Ramswarup Industries Ltd (BSE Code: 532690) recommended to the Paid Groups around Rs.80-81, hit the 20% buyer freeze on the opening trade today, as the stock closed at Rs.102.10. Other two stocks which did well are Kavveri Telecom Ltd (recommended at Rs.54) and Sathavahana Ispat Ltd. XL Telecom and Energy Ltd managed to close in the Green though there were some late selling in the markets. The company has a board meeting on 23rd July, 2010, for the change in name of the company. The company is now basically into solar energy sector and hence will benefit from the recent directives of the government. When the promoters have bought the share at Rs.36 and hence the stock should not go below the price---the current price of Rs.33.90 is the abnormal price of the scrip. Sanguine Media Services Ltd and Vision Corporation Ltd is consolidating at the current rates before moving up-both the scrips have the potential to become multi-baggers...