Thursday, July 7, 2011


I have been telling you that last week rally was not a relief rally.I still believe that the upmove we are seeing is not a relief rally.Market has reversed.
Market has started discounting news ahead of time.Expert believe this or not but that is what is happening.Every analyst is waiting for 4800-4700 and even RJ said that market can find support at 4700-4800 due to inflation and int rate concern but the fact is market put aside that as these were reasons that has happened long time back and now the global scenario is, commodities is coming down and that will be seen in the bottom line of the Cos.
I last time wrote that Auto and Banking will have a very positive effect of this news and that is what is happening in market.
I today am not writing to show that I proved correct or what I said has happened because still there will many ups and downs in market making investors hesitant not to invest in stocks.There will be many shocks and many surprised up move like we saw today but according to me we are northbound.
There are many reports that keeps on coming about Greece crisis, Ice land crisis and so forth and so on but still when these news are fresh market is moving up.
I talked about Cloud Computing in one  of my post and wrote that the stocks to watch are Ramco System,Allied Digital and GSS America.
I don't how many studied those stocks and how many bought them.Cloud Computing is a sector which is going to boom 10 times in next 2-3 yrs and I have mentioned it here way ahead before market starts looking at those stocks.
My readers need to get in early then anyone else and that is why I have started this blog.But remember one thing that when we get in early in any sector or stock then the holding period goes up as we are way ahead before market start looking at those stocks and sectors.
Allied Digital has annouced a buy back at 140 and price was 43 last week and it has jumped by rs 10 in last 3 sessions.
GSS America has seen a good couple of bulk deals in last month or two.Those in know of such things has already started accumalating these stocks.
Ramco System is not budging at all and is still at Rs 92 even though the bottomline is in red.So what one need to understand here is market says Ramco is available at 92 even after making loss and if you want to buy , buy it otherwise leave it and you lose it .The hint here is , what price market will give when Ramco will start making profit?It is la Lumax Ind .......which was making loss and was quoting at Rs 95. I know this is a spoon feeding.This is a very simple commonsense thing one can understand but investor don't think like that. That is why I wrote it here.......
Srei Infra after making a low around 39 is again up to 44 as market feels that Int rate will eases and that will help Srei Infra.That is another case of market discounting stocks ahead of time.
Understand the market....that is the bottomline.
I am writing 3 more stocks in IT space.
1) Avantel Ltd
2) Solix Technologies Ltd
3) Sankhya Infotech Ltd

Avantel and Sankhya is in defence sector where lots of activity is going with orders going to these Cos as well. Open the annoucement of these stocks and read it one by one of last 2 yrs.I do that.Look at the earnings of these 2 cos as well and decide on your own.
Solix is in cloud Computing and is a very small player but it is a dark horse.


  1. Dear Sir,

    After the great fall of Friday 5th Aug. , what is your view now.


    Dr. Ashutosh Pandey
    Chemistry Dept

  2. Hi Ashutosh,
    I don't think there will be a double deep recession in USA.
    The unemployment rate has gone down in US and the earnings are coming good with Microsoft, Apple, Citibank etc giving good earnings.
    Oil is down from high and US is trying to make car maker produce more hybrid cars to save GAS/Petrol.
    Market should be back to normal and EM should not have much impact of USA on it.
    I would suggest to buy stocks now.


  4. Hi Sunil,
    That is a good diggin.That is what I want from my readers.Try to find connection and try to understand the finer prints.
    I was already knowing that but I didn't disclose it here.
    I feel with more and more Hybrid cars coming on horizen, HBL should be a star performer in next couple of yrs as world can't keep on using Oils foir ever.The alternative needs to be found and Hybrid cars are the solution.
    Average US car gives a mileage (average) of 20 to 25/gallon(3.75 litre) and Hybrid car gives anywhere over 40 miles/gallon and that is cutting down the gas bill by half.
    More cars which will run on electric is also been coming on road in USA .
    But for both the version battery is needed and the battery which give the longitivity is Lithium battery.So the producers of Lithium batteries and the parts suppliers like Pondy Oxide will also have a great future.
    Environmentally also Lithium is now preferred and hence even on commodities front there will be great demand for Lithium as the rare earth element.
    Lithium price is also bounded north along with Gold and Silver.
    Gold will touch new highs in yrs to come , price no one imagined back 10 yrs.
    Buying Gold and Silver makes sense and I consider Gold as an international currency as you can carry Gold in any country and you can get the currency of that country very easily.The glitter and attraction of Gold will keep on rising.It is the most precious metal now and will also remain for decades to come or rather centuries to come.

  5. Dear Sir,
    I have added some Digjam and cals refinaries in my portfolio as you
    recommended them. If the prices further fall then may i request your
    views on DCB, Delta corp, Rel power, and punj lloyd.

    Ashutosh Pandey