As expected markets fell below the 4000 levels, again another spectacular call. Markets after falling below 4000 levels rebounded very sharply and the move is very swift. In my last I clearly mentioned that two issues can act as triggers for this call and they were monsoon and the disinvestment plan. Both the issues turned positive and the markets too reacted for that. Finance secretary’s announcement on disinvestment forced the bears to cover their shorts and the global cues too encouraged bulls to take fresh longs.
The most important issue is the US major indices now just crossed the 200day moving average means some technical breakout was happened.
Now the question is where we headed further? We are going to touch the 4680 levels or 3660 levels? We can believe this up move or not?
In my view, Nifty is likely to be in range in the short term. The range may be little wide from the 3800-4850. Now, we are at the middle of the band and the momentum suggests that we are going to touch the 2009 high i.e., 4680. So, one should have the long view only. This up move is very very crucial and it will act as key rally to judge that we are entering in to a bull market. When we viewed one year period from here nifty surely touch the 5200. So, trade should be long.
Those who are willing to enter aiming the 2-3 year period can pick the stocks on every decline. The immediate question is what stocks to buy? At what levels we should buy?
ST, MT and for the LT:
1. Larsen
2. Alstom Projects
3. Reliance Infra
4. Siemens
5. BGR energy
MT and for the LT:
6. Bartronics
7. ICSA
8. JKcement
Only for the LT:
9. Tantia constructions/Unity infra/JMCprojects
10. Gammon India.
According your risk appetite and the target time you can pick the stocks from the above list. Along with the above stocks I prefer some other stocks (NTPC, Punj Lloyd) but the valuations and the momentum not enticing to pick at the current levels hence whenever the opportunity comes on that counters I will initiate fresh call.
With thanks
Be and make
(Disclaimer: Please make your own analysis before taking any decision; I am very carefully picked the stocks with all efforts despite that I strongly recommend you to please do your own analysis before going to trade.)
3 comments:
Dear sudhakarrao,
Till the march/april, every week I came with new ideas especially on Nifty. Most of them are shorting ones but after march I stopped giving the trading calls simply because that when we are getting more money on delivery investments then no need to take the risk.
Now, we are going to have a very strong bull market and can last for more than 4 years then there is no need to take the risk. I gave some stocks to buy in February when all were talking about the 2000 levels nifty all the stocks rallied more than 100-300% within two month period.
In my last two reports when nifty was trading around the 4450 levels I clearly mentioned that nifty will surely go below the 4000 levels and as I anticipated it fell and rebounded from there. In my last one too when nifty is around the 4200 levels I clearly mentioned that it is going to touch the 4680 levels and is marching in the same way.
So, it’s the time to think long and not to look for the 1-3% gains on weekly basis. Just hold good stocks all will fetch you good returns.
With thanks
Be and make
In reply to:
Kalyan,
Can you suggest us stocks that can take position for one week time.
Regards
Sudhakararao
Exellent stock picks on this blog.
Essar Power to start mining from Tokisud block in Jharkhand. epicresearch.co
Post a Comment