Stock Markets : The Road Ahead

The stock markets continue their upward bias though last week saw the indexes showing volatile movement. The index looked struggling and tired after a huge run and is taking a breather to march again with enthusiasm. The sensex closed at 7780 and nifty closed at 2383 levels.
Outlook on markets still positive
The markets are expected to remain volatile with upward bias with short term perspective. The long term movement also looks positive. However , small bouts of corrections are not ruled out.
The biggest factor for markets to remain buoyant is that there is enough liquidity in the markets. The FII's continue their buying spree acrosss the caps and sectors. The Indian stock markets are seeing an unprecedentedt trend with large money flows chasing stocks and trying to find out value among underperforming stocks.

Retail investors have also flocked in large numbers to try their luck and get some pie in the stocks. The number of Demat accounts opened in last month has crossed the 2 Lakh marks. Retail investors are still betting on the IPO's as the main entry gate to the stock markets . With slew of IPO's lined up to hit the markets and retail interests intact, the IPO's are poised to do well and bring wealth to the investors.
Which sector will perform well from here ?
The Banking space is expected to perform better with private banks taking a lead over their public counterparts. Technology sector has remained an underperformer with no fresh triggers , however , positive news on the bell weather stocks and acquisition plays may create interest in the sector. This sector is expected to be a performer. Metals remain sluggish and are expected to be same with short term perspective. Oil & Gas sectors are expected to be market performer. Textiles will also continue to attract buyers.
Investment Strategy
It is recommended to keep the IPO investment route intact. Fresh buying in the stock markets should be done only on selective basis and not on rumours. Stick to the fundamentals and growth stories. Beware of small cap stocks which have run up quite high and do not let greed overtake the senses.

10 comments:

Anonymous said...

Hi Rajesh
I am an investor in the US. Patni Computers is planning to come out with an ADR soon. From your understanding of the Indian stock markets I would seek your opinion on this stock. I am not looking at listing gains but a long term standpoint.
Thanks
John

param said...

Hi Rajesh
Your analysis is simply outstanding!
Thanks for guiding us through the ups and downs of stock market. I am a regular visitor to your blog and has benefitted immnensly from your ideas.
Thanks buddy
param

glassnost said...

Hi Rajesh,
I have given a link to your blog in my favourite links without your permission.
I hope you do not mind and request for official permission to give link to your thought provoking website.
Thanking you in advance,
with warm regards,
glassnost

Anonymous said...

Mr.Soni
Can you suggest us a good banking stock to be purchased ? I have purchased narmda chematur based on your recommendation. Now it is showing sign of movementum.
Regards
m.r.kale

Anonymous said...

Dear Investment Guru,
I am a big fan of your blog and do not miss any article or idea which is published on your blog. Actually, I frequently advice my friends also to visit your site for investment guidance.
After reading your article on market guidance, I am still unclear on the technology sector. I have a big investment in tech shares. Please guide if I should maintain my exposure to tech sector or shift to some other sector?
As alaways , Thanks for your invaluable guidance to the investor community.
Regards
Madan Purohit, Bhopal.

Anonymous said...

Hi Rajesh,
What are your view on the Madras cement scrip. It was recommended on CNBC. But i wanted your opinion before buying in the stock.
Thanks

Anonymous said...

Dear Mr. Soni,
U said that Banking Sector will perform better in comming days. Can u express something regarding Yes Bank.

Should we buy more or should we Hold???

Narendra said...

How is PNB for long term?
Also, I want to know about Usha Martin (steel stock) for long term. It has almost doubled in last 2 months.
Please tell me your views on this?

You have not posted your views on Paper and Cement stocks!?

Please enlighten on these.

Thanks,
Narendra

nithin said...

sir , iam holding provogue @150 what is your advice what is your advice regarding fcs ipo and amar remidies

thankyou sir
nithin

Anonymous said...

I have applied for HT media for 72 shares.Today when entered my application no. on karvy site answer was sorry ! Amount Rs.38160 is debited from my account.In such case what should I Do?. Can any one guide me. I have send E mail to karvy giving all details.Is anyone sailing in same boat Please let me know.Thanks.
M R Kale