FII rally may propel Sensex towards 20K

Now Economic Times started to harp my story, (after creating so much pain to the investors with all sorts of rubbish news about the markets). Those who have sold RIL at at loss after hearing them and some brokerage houses would certainly repent now. You should understand that RIL group is one of the biggest "Gamblers" in the stock market and if you invest in their shares, there is very less chance of you making loss in the long term, however, much the wolves bark.
If you remember I  had given a buy call on Reliance Industries Ltd, many times in the last couple of months---but alas many people believe the newspapers more than me.
What they fail to understand is that newspapers/or television channels, are just like any other bania company, who are out there to make profit---so they will do anything that will generate profit. And  Indian media is famous for prostitution to grab eye-balls.
Economic Times, have at last understood that it willl be futile to ask people to sell further; which they have been doing since some weeks (may be) in connivance with some well known brokerage houses; who have already lost enough money by now, going short in the markets. Look at the chronology of events: They first tried with RIL by publishing lot of negatives on the company, then brought in Mr.Rakesh Jhunjhunwala and put one negative comment from him (in his conversation), as the Headline, but to their dismay that also failed to quell the bulls. Seeing that this master manipulative newspaper group, brought in Shankar Sharma (and his wife), known for "idiotic bearish" comments, which also failed. Also they did not publish my criticism of Shankar Sharma's moronish comments, in their "Letters to editor" column. Then they started sending news about FIIs leaving India but that too failed. Now when all that failed to quell the bulls, they have started giving positive news about the markets. This is called Market Manipulation by newspapers and if any SEBI official is reading my post can very well take note of the  happenings.
Appropriate actions should be taken against such newspaper groups for misleading the masses.
When Rakesh Bhai said a couple of months back that he does not have directional call on the markets in the next 3-6 months, I said, "I do not know why Rakesh Bhai cannot see the obvious, the bulls are coming and that too with great force. The call is clear--it is now only up" (Please check my earlier postings in this blog)---but then as usual I got lot of hate mails from some marketmen for opening my mouth against Rakesh Bhai. I am not saying I know more than Rakesh bhai (whom I respect), but what I am saying that sometimes even seasoned marketmen or experts commit mistakes. This time it is obvious that both Mr.Rakesh Jhunjhunwala and Mr.Ramdev Agarwall (Motilal Oswal Securities) made mistakes in reading the markets.
Anyway, I hope most of you have received the good  news on Kohinoor Broadcasting Corporation Ltd regarding channel launch. I have sent the news to my Yahoo Group (Free), SumanSpeaks for the benefit of all and to some other groups, where I also pen my thoughts. PLEASE NOTE THAT THE MEMBERSHIP OF THE FREE GROUP SUMANSPEAKS HAS BEEN KEPT ON HOLD TILL 31ST OCTOBER, 2010, TO STOP THE "AYARAMS AND GAYARAMS" (Those who enter and exit at will, increasing the work of the moderator/s) AND THE MISUSE OF THE GROUP BY VESTED INTERESTED PERSONS.
Also what to do with Sanguine Media Services Ltd which hit the buyer freeze on the late afternoon tade on last Friday....??!! Also J P Associates Ltd reached my first target of Rs.122.
I have also recommended Avon Corporation Ltd (BSE Code: 532995) on last Friday, at Rs.5.75, for the short term--as some positive news is coming in the counter.

MUMBAI: Indian stocks rose to a fresh 32-week high on Friday, fuelling expectations of the benchmark Sensex topping the 20,000 mark as early as next week on the back of abundant foreign fund inflows. 

The Sensex had last touched the 20,000 mark over 32 months ago in January 2008, well before the start of the worst financial crisis that year marked by the collapse of storied-investment bank Lehman Brothers. 

Over the last six months, foreign investors have been the primary drivers of the rally, buying at every given opportunity while local institutional investors, including mutual funds, have been offloading shares. 

Provisional data on the websites of stock exchanges show that foreign funds have bought shares worth close to Rs 1,500 crore on a net basis on Friday alone. Dealers at foreign broking houses say a sizeable chunk of the money is coming through exchange-traded funds, which some view as hot money. 

The 30-share Sensex hit a high of 19,639.18 intra-day, before settling at 19,594.75, up 177.26 points over Thursday’s close. The 50-share Nifty closed at 5,884.95, up 56.25 points, or 1%, over the previous close. Stock markets not just in India but also in other parts of Asia, including Sri Lanka and Pakistan, have been going up, taking a lead from Wall Street. 

Foreign funds have been buying into Indian stocks given the growth potential in an economy that is projected to grow at over 8.5% this fiscal, rather than investing in other major economies in the West where growth is faltering. 

“The fundamentals of the economy are strong, but the market is going a bit too fast, fuelled by foreign money,” said Nirmal Jain, chairman and managing director, IIFL. Mr Jain has a word of caution for those buying and selling shares. “Any event that could disrupt foreign fund flows could trigger a sharp correction and investors should brace for a choppy ride in the short term,” he warned. 

Investors, however, continue to place faith in second-line stocks, pushing up the BSE Midcap index by 1.4%. This despite the fact that many brokers have advised their clients to pare exposure to mid- and small-cap shares in a rapidly rising market, since these stocks take a steep hit when the market corrects. 

“There is a feeling of euphoria when you look at the rise in the last three weeks. But on a calendar basis, the market is up 12-13%, which is not much,” said Rashesh Shah, CMD, Edelweiss Capital. 

Brokers say valuations are not exorbitant when compared to those at the peak of the bull run in early January 2008, when the Sensex was trading over 25 times one-year forward earnings. Yet the spate of share issuances by companies is a cause of worry, they say. (from Economic Times).