Saturday, February 26, 2011

On Thursday market tanked in big way.It was over 500 points.Well market was up next day, Friday, but I feel that still market is not out of woods.
I wrote recetly that market can still go down to touch 16k and looks like it should come.Midcaps and smallcaps are sold lock stock and barrel.Looks like there are no takers for them.But that happens when market tanks.There is nothing new.Investors sell to buy later.
If one remember I wrote , market always favours BEARS.I remember I wrote on front page that Market favours bears.When everyone wants to sell and no one wants to buy, prices keeps drifting down and down.
It is a human nature.Trying to save whatever amt they can and when selling starts it is like capitulation and that makes bears work more easy.
There are margin calls as well and brokers sell holdings of clients to make up their loss in F&O.
The unrest in Middle East which started from Egypt and has now gone in other countries like Libiya which are OIL producing countries has put the crude oil at record high recently at $100 which is sending jitters to world MF managers.
The talk of $220 for Crude has already been prijected by Nomura and that is making market more on shaky state.
I has always said , buy in trenches.Buy 10% every time if one feel that fundamentals are still good.
Wiser council should prevail sooner or later.Scores of stocks are making newer and newer lows.
The silver lining here in India is growth is still intact.I know that with crude prices going up will hamper the growth but still I don't see why 8% growth rate of GDP for India shouldn't remain there.
I am seeing that FII's are selling in big way as there will be no tommorow but they have to come back here to invest again in Indian market.After all India has long way to go.
If bears are saying that they went right in prediction then one needs to remember that they took over 1 year to prove right and that too after market going from 12k to 21k.They anyhow missed the rally and lost the money while shorting the market whole time.
If someone proves correct after one year and 9k points I don't think that is a good prediction.
There is no point in boasting of coming true.
Bears who made huge money in shorting the market in 2008 lost everything they earned in 2009 and 2010.
No one is par excellence(Batrish Laxshono) in market.No one can time the market.That is the bottomline.No one is above market.We have to take the gyration in our own way and that is the order of the day.........
Let us see how budget comes on Monday and how marketman reacts on it......
What I will write is, this is an excellent chance to lappup good stocks at very cheap valuations.Find those stocks and start buying them slowly.If one have no money and can't buy anything then remain on sidelines.Don't do anything.I keep on writing that don't invest with borrowed money.That will put you in awkward situation.No one know when market will take U turn and no one knows when the stock one hold will run.Make sure that you have income which can run your routine without any problem.
Always remember the above paragraph.
I know it is difficult to swim against the tide but that is how money is made.
Buy when fear is there and sell when greed is prevailing.It is easy to speak then act but one needs to learn it.
Up and downs are part of market and one needs to learn to digest it.


  1. Dear Rajeev

    What is your opinion on Lakshmi energy & foods.
    Cmp: Rs 41/-
    Market cap:262crors
    cash reserve of 544crores.
    It is from Food processing segment,

    What you think Rajeevji? Please convey your opinion whether its avalue buy or not


    Vishnu R Nair

  2. rajeev jee good article......hope that sensex does not tank to 12000. good buying opportunity as u rightly said do u track a k capital it is probably a very good stock having enormous potential but around 300 probably can get this stock also zee learn if held for 20 yrs can it become titan ind.

  3. Rajeevji's what's your view on JSW ENERGY, SARLA PERFORMANCE

  4. Rajiv ji, Only recently i came across your blog, and i am following your valuable posts since three months... Awaiting your further posts..after presentation of budget..

    And BTW, could you please tell me top ten mid cap or small cap stocks that are fundamentally strong enough where i could invest for A THREE TO 5 YEAR PERSPECTIVE.. I think i have come one such post of yours, where you have give a list of fundamental strong stocks,.. but then i missed it .. and i am unable to locate it now... JUST I NEED 10 SCRIPS WHERE I CAN INVEST 5 LAKHS..