Jan 14, 2010

Market outlook for 2010(14-01-2010): Be and Make

I am little bit late this time in forecasting the market mood. I am holding my views expressed in November 09 (http://stockstowin.blogspot.com/2009/11/market-outlook-for-short-term-26-11-09.html) on market outlook. Markets due for a correction for sure and even in the near term there is no big event to act as a trigger for this correction. The general rule in the market is ‘selling when all were buying and buying when all were selling’. Now, its time to come to the basics and we should look for the valuations for sure. For FY11 earnings markets fairly discounted at the current levels which clearly tells the fact that upside is capped for our markets for medium term say six months. At this point the market has the same chance of going either the side with 20% move. The broad range for the market for 2010 would be 4200-6200. If you bought around the 4200 levels then you can fetch nearly 50% if markets reached the 6200 levels. So, it’s most important when we are buying and what we are buying in 2010 otherwise one should sit with lukewarm stage in 2010. Markets were already in a tight range from last couple of months as the lot of money domestic and foreign is still waiting to come in and will cushion our markets in this year.

So, after the Q3 results markets likely to correct a bit. This is the good opportunity to enter in this market those who missed the 2009 rally. Use this correction to enter the markets with strong note. We are in a bull market and expecting a correction in this bull market.

So, if the above said correction took place then which stocks should be bought and what should be our portfolio for this year is the big question. In 2009, I gave two portfolios consisting above 20 stocks and the average return is about the 200% and 80% respectively after my buy call. Please go through those two calls I am providing the links here:
1. http://stockstowin.blogspot.com/2009/02/its-time-to-build-portfolio-be-and-make.html dated 18th February 2009.
2. http://stockstowin.blogspot.com/2009/07/time-to-think-long-be-and-make.html dated 20th July 2009.

I strongly believe that the growth story of India is intact and my value approach in stock picking fetched me great returns in the past. In 2010, I am taking a little risk in stock picking and stocks with great potential to become multi-baggers are picked from the basket and hope will turn to be great guns for 2010.
The stock for Long term:
1. Suzlon
2. Punj Lloyd
3. Reliance Infra
4. Gammon India
The stock for the Medium term:
5. Adhunik Metaliks
6. MIC electronics
According to ones risk appetite one should allocate the amount in the above stocks I strongly recommend to go with the first two and my order of priority in the descending order in the list.

Happy investing

With thanks
Be and make

4 comments:

Manju said...

Thank you

kalyan (Be and Make) said...

dear manju - Punj lloyd started moving strongly, please keep it in your radar.

be and make

Anonymous said...

Yes, Suzlon can deliver market-best returns over 12-24 months. Order book can only improve from here.

kalyan (Be and Make) said...

dear - Suzlon can do wonders if its order book starts ticking on.

be and make