Market Update: Sky is the limit !

The stock markets continued their 'trecking' and the sensex and nifty touched their life-time high. The positive sentiments on the India story and continuous buying by the FII's helped the sensex to cross this landmark.
The market overtone still looks bullish with slight undertones of profit-booking expected at such levels. However, a landslide downfall is ruled out.

Where is the sensex headed now ?
With Index reaching uncharted territory, it is very difficult to predict the path ahead. However , if we take some clues from the indicators, the markets are expected to remain buoyant till FII's are posing their belief in the India story.

An intresting trend is that Mutual funds are booking profits at these level, which however, will not impact adversely since there are mutual fund offering coming in which will keep the buying spree intact.
Some regular bouts of profit booking is immitent at these levels , however, the markets are expected to keep intact the upward trend on an overall basis for some more time.


What is fuelling the markets ?
Again, the positive sentiments together with the end to the reliance dispute has helped the markets to go up. Reliance is expected to further fuel the markets. Market is expecting some big announcements from the elder brother now , after the younger brother Anil turned the markets sky rocketing with his press conference.
Another Factor is monsoons. FMCG sector is expected to come out of the blues and hence accumulated buying is seen in this sector.
Monsoons are also helping the Auto sector to keep its momentum.
Private banking stocks should continue to do well.
Steel prices are showing some rebounding, however the outlook is not still clear.
Capital goods and infrastructure stocks are expected to continue their rally.

What should small Investors do now ?
Are u feeling left out and want to participate now ?
Are u thinking what to do with your current holdings?

Investment Guru recommends Investors to be stock specific for any further buying in this market. Do not buy on rumors. Wait for the markets to settle down and be patient.
The best strategy in the coming days can be to give more weightage to IPO's than investing directly in markets at this stage. This will help you in getting maximum out of your money.

If any of your holdings has risen very sharply in this rally and their is no compelling reason for it to sustain it, Investor Guru recommend you to offload your holdings in such stocks, at least partly.

So stay tuned to markets and enjoy the ride to the new territory.

Happy Investing!

11 comments:

Vineet Jain said...

Excellent Mr Soni, your views makes my mind for my future stock transactions...Thx so much for your vision

Anonymous said...

Great Mr. Soni, your style of analysis is really impressive.
I am a regular visitor to your blog
and find it very useful.

Aarti

Anonymous said...

What is your take on Reliance stocks? Can we buy reliance stocks at this time?

Anonymous said...

Dear Rajesh,
what lecels do you expect the Index to touch in next one month ?
You are a good writer.I have not read such analysis even in other big websites.
keep up your good work.

Manoj from chandigarh

Anonymous said...

I expect a fall of 500 points from current levels
sid

zenith said...

Thanks Mr. Soni,

Good Analysis. You have been a big help.

hits7 said...

Hi Rajesh
Agai my same query which is best among these IPOs Nectar,IL&FS,SPLIL.Actually i found all of them equally gud but after reading a post on moneycontrol i feel SPL is not that gud wat u say?
Also one mre query is it the best bet to sell stocks on listing day itself cos i didnt do that for shoppers stop and it has come down frm 420 to 366 now?

kamlesh said...

Dear Soni Ji,
Good market analysis... even I have the same openion. Visit my blog also wealth-kam.blogspot.com.

cvrk said...

Sensex will touch 8000 by sept

Anonymous said...

Midcaps going to see a rebound this week. Sectors in focus : Fertilisers (Agri Based) , FMCG , Auto Ancillaries , IT

Cement and Cement based sector stocks would be good buying opportunity , as they get beaten out during monsons and again rise after August-September . Stocks I like
Hyderabad Industries (SKI Target - 400) , Mangalam Cements (Short Term Target 100)

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