Friends,
Yesterday was really a bad day and it was really really scary.More bad news are seen in International world market.More sub prime crisis seems to follow and we can see more down side.I can't say what can be the bottom ,though personally I feel market should not go below 14k.
But then anybody can go wrong and I am no God to predict such things.I am here just to share my view and there by help readers here.
Personally I am holding all my position though Ramesh Damani is still bearish on market.This is the one person I use to read as he is a genuine person who will at least not purposefully misguide people.
I am keeping my fingures crossed and wait for the Crude to tank.It is going to happen, sooner or later.The speculation has been so high that it has to fall.
Well, almost all the bad news are factored in our Indian market.Now only good news should come in for play , like good Tax collection numbers,good IIP nos etc........
India Growth story is in tact which is more a domestic comsumption story then depending on wrold trade, like export.There is still much to be done in Infrastructure sector, Power sector etc....The country which lacks in Infra structure sector has got a bright future as if she has to compete with the world then she has to do things that have not done in past.
The recent meltdown is not due to bad results , it is due to the selling of FII's that is making the difference.But the silver lining that I am seeing is , after so much selling coming from FII's , market has still been able to sustain the level of 14700.
Maybe it can be violated for a brief period of time but the day is not far off that we again make a U turn and see a good rally.
I firmly believe that as market can't ignore bad news constantly and go up and up, like we saw from Nov/dec/Jan,and tanked, market also can't ignore good news constantly.I am a firm believer of a LT bull run of Indian Market.
What one should do is anybody's guess.Always be at comfort level.One should have no sleepness nights under any circumstances....and that is the bottom line.......
Be on side lines and wait for the picture to get clear....see how FII's reacts as Lehman Br is almost on verge of a collapse and trying to find funds to survive.There can be some more casualties in Financial sector of world market.So better be catious.
But don't get scared....that is the last thing one must do.........
Best of Luck to all......
Dear Rajeevji,
ReplyDeleteCrude has given bearish divergence and will come down to 117 in coming week.
regards,
Grisha
Hi Ravi,
ReplyDeleteRishi Laser has remained strong in bad market and that is the credentails it has to watch put for.
I am seeing that some expert now giving a call on Rishi Laser.
I am pasting here a small report I got to read somewhere from a friend.
But again it proves that I spot them early.....
Report:
* Rishi Laser (Rs.73) is moving from a flat steel part supplier towards becoming a fabrication subcontractor. Substantial portion of the fabrications and assemblies are for the Construction Equipment industry and the Electricals & Power sector equipment manufacturers. This sector is growing at 40% annually. With infrastructure spending expected at Rs.15,00,000 cr. In the 11th Five year Plan (April 2007 – March 2012), the order book of every major infrastructure equipment supplier is growing massively.
The company has nine plants spread over Haryana, Gujarat, Maharashtra & Karnataka. It has 11 Laser Cutting Machine (LCM), 13 Press Brakes and 2 Turret Punch Press (TPP). This was likely to go up by 50% in FY08. The company’s first Robotic Welding System (RWS) went into production in early FY08 and it had planned to add another four RWS in the same year.
For the first nine months ended 31st December 2008, the company has earned net profit of Rs.3.52 cr. against Rs.1.97 cr. in the corresponding period last year on sales of Rs.69 cr. against Rs.37 cr. last year. FY08 estimated profit is likely to be around Rs.5 cr. on estimated sales of Rs.100.
With benefits of expansion to come in 2008-09, sales is likely to go up to Rs.175 cr. and net profit is likely to be around Rs.10/11 cr.
On 7th March 2008, the Board allotted 6,70,000 convertible warrants of Rs.10 each at a premium of Rs.90 per warrant for business expansion & working capital requirements.
The stock looks attractive at the current price as benefit of expansion will come in the next few years. Its book value is around Rs.52 while the market cap is around Rs.63 cr. Since the stock has reacted from its high of Rs.206, the downside is very limited.
Investors are advised to accumulate this stock on dips around Rs.75 level for good long-term growth.
i sort of agree with your ideology that the market may see a u-turn if crude came down. but analysts are saying that July would be the worst month by far for sub-prime defaults. don't you think that is a bigger factor for markets than crude going down by 20 or so points?
ReplyDeleteYes nick I agree with this.I am seeing ominous sign in world financal market , which I have already written in my post.
ReplyDeleteThe Hedge Fund Managers and the CEO at the helm of affairs taking big pie as a salary and a commision has made a mess of situtaion.I am really really worried and amazed to see how CEO's can ask for such a rediculous deala and the Institution is ready to pay them even though they do not perform.
I have been here in USA for last 5 months and I see not a single stock with good fundamentals available chreap.i.e. below p/e 10...all stocks with good eranings means from Loss to Profit are skided high before the results are announced which also confirms that there is insider trading here as well....
But I am seeing not a single stocks at below 15 p/e level in USA even at 12000 Dow and I am surprised to see how analyst there feels that the valuations is down and it is time to buy.
While I compare it Indian market barring Index stocks where our P/E is counted we can finds scores of stocks with great future growth at 5 P/E level....
Very very true. I totally agree with you. And the day these hedge fund manager and CEOs, the so called big guys, change directions will truly be a sad day for average investors like me. And I have a crummy feeling that day is not too far. Disappointing earnings in July could well be a trigger for that.
ReplyDelete