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Tuesday, April 15, 2008

Dhoni's Day out

Global markets were weak on Friday as well as yesterday which prompted a lower opening today. Bears as usual came and bowled their regular spell but it was Dhoni’s day out. In less than 30 minutes Bulls pulled market is positive territory and never allowed to slip the grip thereafter. It seems some where down the line my message has reached to them which must have helped them attack in most professionally.

Any way, I DEVELOP knows only one thing…just do not rush after what you have lost. See what you have and how can you enhance the same. It is certainly beyond our maxim of going short in the market for recovery. Just see what happened..?

As reported to you lot of good brokers, HNI’s and even funds are short in RIL and RPL and there could not have been a better opportunity to trap them left right and center. Nifty too recovered to 4900 and sustained giving big blow to bears. This was the first big blow to them and now it is just matter of time to see whether bulls succeed in taking Nifty to 5050 plus or not…?

It is undoubtedly true that bears are going to make another attack on Nifty at 5000 and if bulls take them head on then for sure it will race to 5312 in no time. My bear friends will have lot of work to do then whereas I have reason to have a cool ice cream in this summer.

I am saying ice cream because there is nothing I have to do for pending S C calls. After Hindustan Oil we have now exit for RIL. Now next on the card is Sterlite optical, ITC and power grid. But the way our MB team handled the pressure I think they are the men in blue. Take any stock post crash the return is 50% plus and 100 % in some cases. They have generated calls like Gremach, Gwalior Chemicals HEG, IITL, Brushman India, R Power, RIL, Jeyswal Neco, Martin Burn and all have fired. They have proved that there is no need to stick your neck in the highly speculative F & O trades to earn. You can do lot better with M B calls. They are very bullish on HEG, IITL, Gwalior and Gremach. Gremach will change even its name to reflect its coal biz very shortly.

And I just can’t forget the efforts of our S C team which had broken the Bombay Dyeing and Larsen story at least 2 months before. Though the stock failed to outperform in the last 2 months in one day it recovered 15% which was spelled out in my section earlier.

I think as the valuations have started re surfacing in mid cap ahead of large cap stocks, small investors need to spot their opportunity in small cap’s only. I think hence forth we should have 2 different ponds or swimming pools one for FII and major market players and second one for smaller players. You have liberty to dip into bigger pond but I think you should enter with the same vision when you enter into casino. Just enter with 5% of your investible funds into that pond and while coming out have at least 1% if not more than 5%. The lost 5% can be searched in smaller pond where people may still call you as champions.

Only few like Dhoni can succeed at the highest level in all forms and rest become aayram and gayaram. It is now up to you where you want to dare to enter…? You need to start believing your self and understand the power. United we stand divided we fall will remain true forever.

At the end of the day irrespective of a 400 point undesired rally the answer is not clear…? Whether de coupling has happened now…? If yes then why and how when all the factors are still negative…? What will be the trend of the market tomorrow…? If market corrects again by 250 points then de coupling will come into play…? Is that mean the rally was speculative and if yes how..?

These questions have set one thought for sure. Do not dare to fight the eagle. F & O is nothing less than fighting an eagle. Try to restrict yourself in quality stocks such as HEG, Videocon, Gremach, SS Duncan, Gwalior, Kirloskar Oil, Brothers and Electric, RDB, Asian Oil, IITL, Bihar Tubes and so on. A surprise stock you can try to grab for 50% return is of course HMT. This stock will be on fire from tomorrow…Its Bangalore land development approval has been through from Central Govt and stock is now heading for huge upside.

The greatest blunders, like the thickest ropes, are often compounded of a multitude of strands. Take the rope apart, separate it into the small threads that compose it, and you can break them one by one. You think, 'That is all there was!' But twist them all together and you have something tremendous

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