Post 9000 ! Beware of Speed Breakers

Stock Markets witness profit booking
Indian Stock markets got to taste the speed-breakers after zooming past the 9000 mark.
The sensex shed 170 pts. and nifty 55 pts. in a landslide fall. Huge selling was seen across the counters with investors seen cashing on to their gains of previous days. The Mid-cap and small cap index also fell by 2% each.

The current Scenario
Yesterday's selling can't be termed as abnormal. In a rising markets , bouts of profits bookings are a common phenomenon. However, to add spice to the fall was the unwinding of the December derivatives and the uncertainty on the Reliance post demerger scenario.
FII's have slowed down their pace of investments and the overall outlook for extreme short term has become bearish. FII's are also in holiday mood. The week ahead may see some more volatility.

Investment Guru's Outlook
Investment guru recommends investors to maintain their bullish outlook on the long term Indian Story. These downfalls are bound to happen in a market that is charting new territories. These downfalls should actually be used to build up positions in good stocks which are unnecessarily battered and hence will bounce back with improvements in sentiments.

Happy Investing!


17 comments:

Anonymous said...

Dear Guruji,
Can you please recommend any stocks which we can consider buying at current levels or on dips. Also please upadate us on RIL.

Thanks,
Yogesh

Anonymous said...

10% upper circuit on Aks Optifibre.
No sellers!

Anonymous said...

Rajesh,
Please update us on the gains whihc hte RIL shareholders will have after demerger. I have 40 shares at a price of 785

-Nikhil

Rahul said...

You are absolutely right. I was skeptic yesterday and today...bought in small quantities, should have bought more as I was in cash.

Manoj said...

Hi Rajesh,
I have bought 100 shares of 3i Infotech @ 160 on your advice on Trader Insight blog. The stock has climbed up to 185. Should I book my profits now ?
Thanks
Manoj

Rakesh Soni said...

hello

You write really gud blogs .... they r very interestin.... gud work!!!

One more thing that it seems tht i know you, probbly ur my brother's frnd.... can i hv ur email id?

cheers'
rakesh

Anonymous said...

Rajesh,
Request your valuable advic on the Reliance stock. Should we buy before the demerger or after the demerger?

saurabh said...

Rajesh it will be wonderful if u can give some insight into the reliance stock,time is running out i think,is it worth spending in RIL at the current levels of 872.

ravishankar said...

What is ur take on ITC,Hindalco and GE shipping at current levels.

Anonymous said...

Hello,

Buy reliance now and sell by Jan 17th. I expect this to touch 1000 - 1050. Pick up the stock again after the demerger. I have bought at 840 levels.

Cheers

abhijeet said...

Can we have some comment on reliance from you mr. soni.
please.....

AC Investor Blog said...

Hi Soni,

I think you don't see my lastest comment about our cooperation in exchange our blog links, so I want to know if you like to exchange, because I need one more India Blog to complete my group of Asian blogs. My blog only have 2 months and it's not complete, so if you want our exchange please contact me by email antonio.mrcosta@gmail.com , or see throught my blog www.ac-investor.blogspot.com.
Many thanks and Happy New Year.

AC

Shankar said...

hi rajesh. ok some inputs from my end - i did a small analysis of some 170 randomly picked midcap stocks (m-cap of 100 cr to 2000 cr; profitable cos.). My immediate focus was on P/E ratios of the stocks. The total weighted P/E (factoring in the m-cap of each stock) came to 31.6 which is mighty expensive. So what you and feel about the Indian stock mkt crashing might be true.

I did a second analysis of m-caps .. this time of only the top 20 stocks (in m-cap terms) was 26.4. Again high.

Also let's see the rise in stock prices over the last one yr in these top 20 stocks (weighted for the m-cap aswell) - 108.18%. The profits of these cos. have increased by only 26% overall. Some people may say that these stocks were undervalued. Possible, but equity markets donot move on the whims and fancies of individual stocks.

Let me prove this to you. Look at the last one week data - the list of top gainers. Not one A cat company in the top 20 list, just two B1 cos. No. of penny stocks (negative profits / P/E of greater than 50) - 8

- Shankar
small2big.blogspot.com

Rajesh Soni said...

Hi Friends,
Will not be able to do much for few days on the blog. My grandfather has passed away and I had to rush to my hometown to attend the last rituals.

Kamlesh K. Jain said...

Soni Ji,
Very sorry to hear that your grandfather is no more. I pay my last regards to him, may god give him peace. God give your entire family the strength to cope-up with the hard time.

Kamlesh

Anonymous said...

Rajesh,

I feel sorry to learn of your loss. May God Bless you and comfort you in your hour of grief.

Sushil.

Penny Stocks said...

Nice blog post. Thanks for the sharing.