Tuesday, December 18, 2007

Monday Massecre.....don't panic.........

Friends,
Yesterday was a bad day .It was only due to selling of FII's of 2000 cr the fall came…
It is obvious that if some one comes to sell anything , even if it is a house or a car or stocks, we will bid the lowest price as it is seller who wants to sell as he wants to getout of that thing and hence buyer will pay his own price which will be always less then the market price….and actually that happened yesterday….FII"s wanted to sell and hence this fall….when a selling of this magnitude comes market only reacts in the way which it reacted yesterday..
There was no change in fundamentals of Indian market and hence nothing to worry. Market will be again positive within a week, maximum….maybe it can end in green by days end..
I again write here, don’t sell in panic….it is the last thing to be done….Book profit where one is in good profit but never sell in PANIC…
I am confident about India's growth story and it will continue to show good growth of 8-9 GDP for 4-5 yrs atleast….
The only destination for FII's , who have lost billions of dollars in US Sub Prime Mortgage , India is the only place they can make up the loss….According to me those FII's who are selling are erring…maybe they are selling in Futures and buying in cash…..yet to see the figures …what and where they sold…
With Sensex at P/E 20 , I am still bullish…..only if we touch P/E in 40's,mid 40's or mid 50's like where Shanghai(P/E..55) is hovering , we can expect a trend reversal…..untill then it is all correction….
People try to guess, how is the trend…whether it is euphoric, optimist,pessimist or what…..but after all market is the best judge.One can't judge all these and take decision…..those who have tried to do that have misetrably failed.I have seen them failing and the anamoly is that they still think that way…..Pity!
Euphoric type situation has been observed in our matket many times in last 3-4 yrs where our market has run from 3000 to 20000 ..and those who tried to time the market has missed the bull run….
The only way to get the max profit , according to me is to stay invested and bookprofit as and when it is necessary…I have always written at mmb and again writing here , sell 50% as soon as stock double from where you have purchased….and make the rest FREE of cost…then let it go where it wants to..
The real profit can be seen only if one is able to forsee the market trend…Our new Bull, known as Lord Of The Rings, Mr Rakesh Jhunjhunwala, was able to see the sustained Bull run and hence he went on holding his stocks and made a Fortune ……
If one is sceptic about the bull run, obviously he will sell his stocks which are fundamentally good…hence it is not only necessary to buy stocks cheap, but also one should be able to see where market is heading for…and for that one has to define his own rules…like I have defined…Sensex at P/E 20 …no Euphoria…..Indain markets has seen the trend reversal(Bear Market) only after P/E has gone over 40….
That is the benchmark for me I have made…to look at whether we are on verge of reversal…
So all said and done…as I have written, don’t panic and sell…that is the last thing investor must do…but panic is only created if one has over levearaged….and hence always remember not to remain overexposed….


Rajeev

15 comments:

  1. Chamatcar.net has got a new competitor for Chakry comments columm.

    Keep up the spirit Rajubhai.

    ReplyDelete
  2. Hi Rajiv,

    I have been a keen follower of 'nakul' on mmb. I do admire the kind of analysis and experience u bring in and how u help a lot of folks make some dough. I have been investing in mutual funds for some time but very new to the stock market.

    I have 100 shares of JP Assoc @ 378 and 100 shares of Centurion Bank @ 58.5 .

    What do you suggest I should do.

    What are the prospects of SKS Ship.

    Thanks,

    Akshay

    ReplyDelete
  3. Timely thoughts always alert investor like us. Keep sharing views & keep updating, not seen posting on ISG group since long time, got link from one of the member & read your article. Keep it up.

    ReplyDelete
  4. Hi Akshay,
    Hols JP Associates and Cobp...SKS Ligistic is looking good but adivce you to buy for LT..My calls are never for ST , say for a month or 2-3 months...

    ReplyDelete
  5. Hi,

    Once again after crash Nifty has started going up. Now we suggest all rises should be used as an opportunity to exit old long positions.
    This bull run will continue for few more days. Overall market is in bearish mood as in medium term its just a small rally due to short covering
    and result season.


    Happy Trading,

    ShareGyan

    ReplyDelete
  6. Dear visitors,

    From so many days everyone is feeling quite bore while working in Indian stock market
    as very less movement is there. NSE and BSE graphs are not moving which are forcing people to just sit back but now market is expected to witness a breakout.

    just enjoy it.

    Moreover now you can have free access to and Stock research reports on our website.

    For any doubt please feel free to ask us.


    Thanks

    Regards

    www.sharetipsinfo.com

    ReplyDelete
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    Now as such the final stages of the formal completion of nuclear deal has come,so we can expect some positive news effecting the
    movement of the INDIAN STOCK MARKET which means stocks coming in power sector will take new direction

    Companies which will benefited includes mainly

    1.Larsen n Tourbo(LT)
    2.Hindustan Construction Co. Ltd(HCC)

    and the list had few more names..

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    Have Query

    Feel free to contact us at


    Team
    KnowYourProfit

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    ReplyDelete
  9. Dear Rajiv and Knowyourprofit.

    Today, HCC was in bearish phase. This is becuase of bad news from Lucknow that the bridge collapsed yesterday was under construction of HCC (this I came to know after todays trade). Will this news give any strong impact on HCC in the coming trading sessions. I have entered @ 71/- without knowing this news. Pls advice should I exit from this counter on Friday.

    ReplyDelete
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  12. Stocks extended gains Wednesday in line with Asian peers. Strong gains in high-beta sectors like capital goods and metals led the up move.

    Bombay Stock Exchange’s Sensex was at 13979, higher by 125 points while National Stock Exchange’s Nifty rose 78 points to 4052.45.

    “We had a party Tuesday in the markets. Sensex rose just 3%, scores of derivative and midcaps surged like there is no tomorrow. Average gains in 183 derivatives http://www.puntercalls.com/stock%20trading.html were about 5%. Markets will need to digest such heady gains before it moves further. 14200 is next resistance and 13600 is support for the Sensex
    Read more detail click on
    http://puntercalls.com/news/positive-start-for-equities-2.html

    ReplyDelete
  13. This comment has been removed by the author.

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