Tuesday, October 12, 2010

How is market?

Market is not ready to give any respite to BEARS.A small correction of 300-400 comes and goes away.The bulls has taken excellent grip on market and not letting market to correct as per Bears wish.
This is clearly seen from the market movement.
I still feel the same reason which I wrote here recently , that some 70 more stocks are going to be added in Index which will bring down the P/E ratio of India much much lower then what it is now.
We have a P/E ratio of 21 now and with those stocks added to Index stocks the P/E ratio is deifnately going to come down and even by that time if market is at 22k or 23k then also it will look cheap and Bulls knows this and hence not letting market to correct.
It is a big game.Pulling the market or not letting to go down even after a big upmove from 18200 to 20600 almost 2400 points rally is a great achievement by bulls.
I wrote previously that market can come back to 5500 or 5600 (Nifty) but it seems that it should not go below 6000-5800.As much as the market will consolidate between 20k and 20600 the chances of 19500 or 19k will get lesser and lesser.
All the calculation of charts has gone haywire and nothing is happening according to them but whenever I happen to read chartist views , I always read that they said that market will come here and they have been proved 100% correct .Market has moved exactly as per what they wrote.I will not write more on charts and technicals.
Investors has to understand what is good for them and what is not.
Certain stocks will keep outperforming the market and that will keep on going on.
I have seen that readers keeps on asking me about whether a certain stock is still a buy or not?These are questions which are very hard to answer.That decision needs to be taken by readers.
I think I will keep one day, Sunday , for answering queries so that I will have not to read them daily.
I donno why investors do not buy stocks when they are cheap?
Now take a case of Surya Roshni.I gave a call in 30's and now it is making new highs of rs 117.65 yesterday .I very clearly wrote all reasons why I like Surya Roshni at that time and that is coming out true.
I gave a call on Supreme Petrochem at 25 range and wrote why I like it.Supreme Petro is also making new highs at rs 79.20 yesterday....
Latest was Rathi Steel at 21 and I gave all reasons for that .It also made a new high of 33 and has corrected.
I would like to know how many readers has bought all these shares?
Stocks don't start running as soon as I write it here.It takes time to mature.It takes time for market to discover its true worth.
I know I am not academically qualified to write things which others use to write.I have very limited parametres to look at and they are very simple to understand by lay investors.
What I explain is never hard to understand.It is very simple but still people are nor convinced then I can't do anything here.
Someone asked me about my latest pick, Arihant Super Strcuture that it's p/e is 117 then why I recomended it?What is the reason I recomended it?He says he wants to learn.....now I can't teach here.This is not a tution class.P/E is not the only criteria to look at.
I have not to explain everything and keep doing that for ever.
The reason recomending Arihant was, there was growth.I have pasted those annoucement where it says that they had acquired lands in Maharashtra and Rajasthan etc.
They have just reverse merged  Arihant Structure with Shaktiman Mercantile and the name got changed.
The growth is still to come with merger of another 2 Cos with Arihant which also I pasted.
Now when I am doing everything to let readers know and even after that readers do not understand then what can I do?

I can't keep on explaining each and every points to each and everyone.
Many are just asking me about stocks whether that is a buy or not?They just wants my NOD.But that is also not possible for me to give. That will also be yours decision......

If I am not answering any queries then it means I don't wants to answer as I feel the query is not worth answering or I do not know anything about it.I will not reply "I do not track" next time.....it is that simple....


  1. Thanks Rajeevbhai,
    Your knowledge and understanding is exceptional,you are extraordinary. There is huge difference in our level of understanding the stock market.
    Hence some time its better to ask silly question than not understanding it.

  2. ur calls r always on target

    i had purchase Supreme Petrochem 200@ 28 and sold at 75 less than a year wht else u want.

    now i had purchased BECKONS INDUSTRIES LTD 1000@7.60 few days back.
    today u can see its result. I am sure of getting similar returns.

    thanks rajeevji for ur gems...


  3. HI Rajeev

    I started investing in 2005 and have been regularly following you since i bought geojit.i have learned a lot from you and have been successful by gods grace .

    This year I bought spanco in good amount at around 60, now firing on all cylinders , surana at around 40 now 110,ennore at 60 now 140 rathi at 23-24 now 29.there are also many others like hi tech gears etc which i have in my portfolio.

    Biggest thing I have learnt is patience in stock market...its worth gold if you can hold onto your stocks for long term.

    Sir, keep up the good work..i hope i will continue to learn from you in years to come.plz ignore silly questions from us at times.

  4. SPANCO ALL THE WAY!!!! Long Innings to Play for the target of 1,500-2,000

  5. Hi Sir,

    I have IFB at 84, Rathi at 19,Loyal at 178,Ennore at 93,Srie Infra at 72,Aries Agro at 78,Super spin at 13.

    I have basic idea about pe ratio,debt to equity ratio,operating profit margin,how to check balance sheet which in addition to Rajeev sirs analysis make me more simple to take decision.

    There is no match for your analysis skills ,simply superb,great.

    Thank you very much

  6. Bipin,
    I donno how to look at Balance Sheet(BS), muje ata hi nahi hai BS ko kaise dekhna hai.....lol....u will have to learn it from other expertss.....

  7. Hi Rajeev

    In one of your previous posts you talked about companies listing their subsidaries if they are doing well. By same logic... marg's main attraction is its karikal port. I want to know if they are going to come with KARIKAL port IPO , will it benefit marg shareholders in any way ..

  8. Hi Rajeev,

    Your calls are great. I am holding almost every stock you recommends . I am still holding suryaroshni from 40 level. I personally like jyoti ltd ... I see Jyoti pumps in all government depart like Delhi jal board and in almost every pumping house jyoti Motors are there. But In 2000 it lost its hold because of lack of R &D in designing. But Now I think this company is taking new type of orders.

    Rajeev, is their is chance that FDI is permitted in airport development or some area development. If so which companies benefited from it.

  9. dear Mr. S. Ravi

    are you suggesting that spanco has got LT target of 1500 to 2000...!!!!

    what is your view on this...I wish to buy now

  10. Kishor,
    I am no expert to give target for any stocks....take ur own decision...

  11. ravi,
    that was the topic I was discussing.I donno whether Marg will give shares to its present shareholders.....