The worst for IFCI and IDBI is over

Street lacked conviction and was expecting correction whereas i Develop said recovery after weak opening which did happen. This was simply for the rollover gambit explained by i Develop on FRIDAY. Market closed almost 200 points up taking it close to 15800. Now 16K is not far away which was never visualized by Street except CNI ever since May 2006. This is meaning of CNI conviction……

Today’s rally was led by Index stock Bhel, Larsen, ACC, SBI, Tisco and RIL. This was simply there were more short positions than long. In fact, on Friday alone, there were 2 mn put long was seen in Nifty as against 3 lac call long which clearly suggest that shorts were trapped.

We had HLL buyback hint which was the reason CNI was bullish on HLL is last month but due rotation of stock, we had to remove the same from S C section. But the fact remains …..ever a call removed from S C section reaches its destination only time is the matter of fact.

RIL recovered lost grounds and waiting for Thursday for its decision on GAS in the court which can provide a good clue for RIL crossing 2 K. SBI will reach its destination on RBI policy announcement and Govt circular for 4% FII limit change. The worst for IFCI and IDBI is over. We had expected correction in IFCI till Rs 50 which has seen the light of the day. Please do not remain short now in IFCI. It will take U turn from Rs 50 levels. IDBI is now heading for Rs 145 in Aug vallan, whereas Tisco which is on its dream run may touch Rs 750 shortly. Once again only i Develop had said that Tisco will touch Rs 700 first then could be Rs 380 on CORUS event.

Coming back to cash, Steel Strips and Tubes is on its dream run and Street would not be able to halt it till Rs 250. Every day with the rise in price, the appetite to buy will become thinner. What you could have bought 1 lac share at Rs 25 now can be only 30000 shares and with SSTL crossing Rs 100 market it could be 10000 or less and at Rs 200 plus it could be only 1000 shares. Tow funds have sealed its fate in this stock and it is under accumulation. Irrespective of lacs of shares selling it is getting closed at new high which means stock has traveled in safe hands. The downside is therefore fully protected. Another bright day is seen tomorrow and hence another big bout of buying seen in SSTL. We expect at least 4 lac shares more buying is expected in this stock which means the stock will safely land in 3 digit zone.