Friday, April 11, 2008

First sign of Bulls getting strength.....

Well, today was I-day.....and every Friday is I-day..........I means Inflation figures day.
The Inflation figures were up then last week but still market closed higher.
That is the first sign of Bulls getting upper hand.........as it was obvious that everybody were feeling that if Inflation will go up market will tank......and that too very badly.But that didn't happen......that is according to me is the first sign of Bulls getting strength.
It also says that there is no more room for downside.It means that investors are ready to buy stocks at this level ignoring the inflation nos.
And that is the precise reason Small/Midcaps are firing all cylinders.....
Small/Midcaps have been beaten down so horribly that there is only one way and that is up from here.I am seeing lots of value surfacing in horizen at this point and stocks are available at mouthwatering price.I have already given the long list .Artson Eng where many were asking me is firing like anything.I have time and again said that have faith in stocks which you hold .Go to Artson site and read what they do......Do your home work....Conviction comes only if you read yourself.......about the company you wants to invest..........
Well,market has ignored the inflation figures and that is a good sign for Bulls.Market is not taking note of negative news and went up and these is what shows that is going to come up.
Bears has shortsold Ril Ind,SBI,RPL, Ril Energy etc heavily but seems Bulls are trapping them and one fine morning Bears will see that all their profit in selling short has evaporated.....
for e.g take the case od Ril Ind.....it was 3200 and now it is 2500....means market is down still by 25% and Ril Ind is going up.
It is easy to sell nifty and then sell Ril Ind , SBI,Ril Energy etc as these stocks will fall, naturally nifty will also fell that is precisely Bears have done and everyrise they will sell more unless the SL what they have thought do not come and that can be as far as 5300 or 5500....untill then Bears will not cut their position.But I think by then their all profit will vanished .....
Bulls are trapping them inch by inch....let them short sell ....and then will come back from behind like they did today....
It is a Bull and Bears game...........
I am no judge of anything ...I read and analyse..........and I write......

5 comments:

  1. Hi Rajeev,

    I have been following up on Dollex Industries lately.The main features of this company are

    - Ethonol play
    - Punj LLoyd,Cranes Software and Brenco a brazillin Ethonol company have major stakes.
    - There has been a some heavy Insider buying happening

    Check this link
    http://www.dnaindia.com/report.asp?NewsID=1103961

    I hope you might have some information on this.

    Raju

    ReplyDelete
  2. Hi Rajeev,
    i pretty much agree with how you read the market reaction to inflation.
    i dont know whether you read George soros latest article about 1 trillion $ lost in subprime, thats a major writedown=size of indian economy.
    how bad the impact could be, as the FII might sell off in indian to make up for illiquid assets in US and that coudl hurt sentiments further and begin the bear market.
    also in recent ramesh damani chat, he has started hinting this could be bear market rather than bear phase considering all -ve like inflation, interest rate etc. also yday sukumar also sadid there could serious deceleration in growth. considering that do you think high p/e stocks like jai corp, epic energy, rnrl might face further downgrade.
    even though IIP numbers coming high seems a major fillip to the bulls.

    ReplyDelete
  3. I wish what RD says comes true but after the scary fall in Dow on Friday, all I can see is another 1000 pt docking and sea of RED in the coming week. Based on Monday opening in Asia, things might be slow but by the time, the Ts are crossed and the Is dotted for the next weekend, I can not see anything but gloom (even though I wish bloom, after reading the optimistic RD)

    ReplyDelete
  4. Don't go by USA market.......we do not go up when Dow goes up....we seen in past....that..
    Now if the valuations will be good people will buy....and one must buy if he /she feels like buying...
    Dow can go up again on Monday as it was an abberation on GE bad results....

    ReplyDelete
  5. mvs raju,
    Yes, Dollex is looking good.
    I do track it but it is LT bet like my other calls.
    Worth a look.

    ReplyDelete