Metals shines as Sensex climbs mount 19K

Sensex defies law of Gravity, bull run goes beyond Reliance Pack

Law of gravity says that everything which goes up, comes down. Looks like this doesn't applies for the Sensex !! What a day it was ! With sensex finally climbing 19000, it made sure that the cheers comes from across the board rather than only Reliance pack holders . Today was the day for metal stocks to shine brighter and make their presence feel in the march of sensex to glorifying heights !

The beauty of today's rise was that it was secular in nature (did I say secular , sorry Tech is out flavour still, can't help it). The rally spread across the large , Mid and small cap stocks.

Let's discuss some of the stocks that I have discussed earlier on the blog and see how they are doing. One of My favourites in metal pack "JSW Steel", rose around 13% to cross the 1000 mark. The stock had a spectacular run in the last one year. Sail also rose 16% to close at new high of Rs. 260. Skumars continued its run ahead of the demerger and closed at Rs. 125. Gitanjali gems continued its glitter to close at 368. I believe that the stock still has steam left given its focus on inorganic growth. Reliance Industries continue to rule strong. Investors are advised to maintain a hold on this stock.

CCCL had a sparkling listing today. Against the offer price of 510 , the stock closed at 800 a gain of 57 % !! Recently listed IPO have been quite rewarding given the huge demand and CCCL was no exception. Short term Investors can consider booking profits at a price above Rs. 860. Long term investors can continue to hold the stock.

So are you guys all set to see the 20000 mark ???? Wondering what to do ? Yes, one question that is hounding retail investors is that whether it makes sense to buy at current levels ?

There are no signs of a pull down, the only factor of political instability has also lost its power since congress seems to have dragged its feet back on the nuclear agreement issue. It's hard to give up the throne! Q3 results so far have not thrown any major negative surprise except that the rupee appreciation has been able to dent the growth rate of IT companies. But that has already been factored ! So the only reasons for markets to fall from here can be profit booking by the FII's and that can come anytime!

The advice here would be that conservative investors would be better avoiding buying into stocks at current levels. If you are already invested and see super profits on your investments, you would be better off booking profits on every rise. After all, its equally important to bring the profits in your home rather than being happy seeing your notional profits!

Parting thoughts that may give you some insights ....power grid is still languishing at 115 levels after a powerful debut. Will nagarjuna fertilizers become part of Reliance pack ...? Will Gitanjali's recent acquisition help it cross 400 levels ? Can Bharti's tower biz help it to attain all time high !

All the best! Enjoy the current bull ride , but safeguard yourself from the jerks that this bull can give. Invest in fundamentally good stocks. As always, do write to me if you have any queries!


Anonymous said...

25K is not far away if you consider the FII investments lined up. but i think october has historically been a bad month for markets and no wonder if markets crash once in october before rising again.


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