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TIME TO STAY PATIENCE
There is no problem in fundamental factors for present levels or for downside even though currently our market is looking USA for direction, so our market will go in line with USA. It will continue some more months after that we will start out perform. There is no doubt about touching all time highs as we have some strong positive news, but it needs problems in USA to be settled. Most of leaders are available at cheap levels due to over expectation and fear. Remember that our country is one of them in world has Gdp over 5%.
In one or two quarters companies price will start up trend again because once result starts beating market expectations buying pressure will come automatically, because answer is simple where will you invest, where there is growth visible is not it? Till such buying pressure comes most of companies expected to trade in range bound. So taking new shares or shifting will not change significant change. What we can do present time is taking __________. Profit from this strategy is limited but it is profit, use this profit to __________.
We are confidant on reaching all time high levels due to strong positive developments in our economy. Do not expect stocks without fundamental to rise again. For eg IFCI, ISPAT like shares, we consider its like Mosquito want to become Elephant. These shares have no huge profit to support January highs. Time is to avoid such shares (last few months we were telling you the same), use it to buy fundamentally strong shares or strong leading companies. If you hold long term it is waste, because these shares can reach high levels only when strong positive news or growth comes, unfortunately there is no such news now. Perfect example is Himachal Futuristic, people bought at 1000 levels in year 2000 still holding expecting this level to come again.
If you stay away or exit this time bear in mind that you are a fool. Think of famous stocks past time, the huge return given in past, where from you can get such return with government support. Remember that market has strong value for sentiments than reality. Currently market is over expecting negatives, that's will not be accurate as most of countries are helping economy.
Hold if your company is good, has strong positive news, growth plans, strong expansion, if not just exit, take other company
If strong growth sustains share price will surge to high levels, invest in such shares for unusual return. We have visible company VEER ENERGY listed in BSE. This stock is in circuit every day due to growth, recently it given bonus 10:12. Every day it is in upper circuit only trades one share due to high demand. We have not recommended it to our clients as only one share trades, some day no one is ready to sell.
The new friendship with USA will make new attack from SIMI, MUJAHDEEN, ALQUEDA like groups. We can expect like old parliament attack, possible to target STOCK EXCHANGES. The new method is emerging is attacking people without looking importance of cities, which is very dangerous one as no state will away from these group, we mean even small districts will face blasts.
Whats status in our recommended stocks ?
There is no difference now compared to all other stocks, in loss but we are confidant on them because most of these companies are confidant on growth, more over recent results supporting this view. So we have no doubt about its future. But we are recommending even our clients to stay calm let the problems in USA settle, 1-2 quarters stocks will start out perform as the growth is visible.
Happy Trading,