MARKET OUTLOOK POST ELECTIONS(18-05-2009): Be and make

Election results really a positive surprise for the markets. There is lot to cheer for the markets. This result gives us two important messages
1. Stable government (So one can expect strong decisions)
2. Without left (means more cheer to the financial reforms)


In my view, for three year horizon no need to think about the 300-400 points in nifty despite the fact that we were with 10 week positive weekly closing.

In my view, the current bullishness is likely to lift the market only because of the liquidity from here and not because of the fundamentals. As we all know that most of the retail investors and the MF still sitting with huge cash levels (above 20%) mean more money likely to come at this point of time.

Fundamentally we are peaked at 4200-4350 levels hence one should look that levels very carefully. But fundamentals will not have any significant impact when such good news flows in.


I gave the report to build the portfolio in mid February 2009. At that time no body talking about the rally or a recovery but every body talking about the new lows but I strongly recommended to build the portfolio with 10-12 stocks now all were with 100% profits.

Please go through this link:
http(:)//stockstowin.blogspot(.)com/2009/02/its-time-to-build-portfolio-be-and-make.html

Cheers to the investors those who are following my blog.

Great returns!


So, now the question is whether it is the time to invest without expecting the correction or wait for the question to the investors those who missed the current rally?

Those who are missed the current rally should invest at least 50% of the money at the Monday morning. One can expect a 15-20% rally from the current levels from that some correction can be expected and that correction should be used to invest in.

So, if so then which stocks to buy?

The sectors Positive after elections are Infra (including the construction), Power, banking and government companies with disinvestment chances.

Out of my ten stocks I will prefer to go with reliance infra, bartronics and L&T.

On disinvestment front one can look in to some PSU stocks including the banking out of the entire best pick from the banking is Canara bank.

With thanks
Be and make