Market view:
Correction is always part of Market and excess created by rallies has to be shed then and there, otherwise big bubble forms to give a bigger threat latter. Election results in coming week, even if it surprises the market on positive side. Coalition politics has its own pulls and pressure as each supporting parties will have there own demand and as per there demand equation change and stock & sector also will change so we have maintained a cash level of 70% to take a fresh view post Government formation. (Just to quote a Example if SP gets a majority the ADAG group many have upper voice which would impact Mukesh Ambani RELIANCE IND in short term and vice versa). One should understand in any market there would be stocks which would outperform market and in past few days Commodity stocks are outperforming market on many Green shoots theory. Already we have seen 400companies double there price in very short term and in Nifty itself has seen 20stocks more than double from low of October. Alarming is many stocks which had volumes below 10,000 as average traded is just seen 10times more volume indicating retail feels missed out in the rally and buying low price stock without proper research where I would advise caution never try to find a multi bagger as one out of 100 is hard to find.
Stock Pick as Investment given on 2/May/2009: 8-10months time period
3IINFO (Rs.46) Target Rs.60 Cmp Rs.50
GTOFFSHORE (Rs.273) Target Rs.370 Cmp Rs.285
PUNJLLYOD (Rs.115) Target Rs.170 Cmp Rs.126
TATAELXSI (Rs.109) Target Rs.143 Cmp Rs.118
LT (Rs.879) Target Rs.1200 Cmp Rs.991
IRB (Rs.95) Target Rs.135 Cmp Rs.102
(These Investment stocks will be tracked, invest 5% in each stock so total investment would be 30%, in case you feel market might correct but still you want to invest something then make it 2.5% per stock and 15% as total so that you can average in case of major correction.)
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