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Wednesday, April 16, 2008

Harmonious Happiness

It is well said that public memory is very short. Traders are back in action asking for counters whereas consensus have not stopped selling short because they have been taught by Harward to understand the fundamentals and then try to earn through shorting. Well, they were not taught when to become negative and when positive because every master keeps one ace in his sleeves.

RIL, RPL, RNRL and now Bombay Dyeing where punters have gone short. Orchid has proved that shorting is such a dangerous game. You earn 10 days and one day is enough to take you en route heaven. It is common knowledge that market may tire around 5000 Nifty which is even known to bulls.

Therefore if you go short on the premise that 5000 will not break and you get an opportunity to buy lower is only out of self imagination. The Bull Run has started. Nobody will feel it till 5300 because till that market will invite short sellers.

Orchid rose to Rs 325 only because short sellers have not cut short positions. The fundamentals do not warrant such a rise in the stock price. It is also sure that there will not be any open offer in Orchid. If you are short in one lot you would still survive but if you are short in bulk you are paying the price of shorting.

Meanwhile B gr has given enormous returns so far. We have spotted various items and all have fired. In A gr the class apart was Bombay Dyeing. From Rs 600 to Rs 820 in just 2 days and the story was nothing else than the CNI research story. In this column I had suggested some action in RNRL and see it has happened from Rs 95 to 110 in just 3 sessions. Now it is turn of RPL and R Com both which will fire till 24th April and reason will come later in the market.

IN cash segment I had told you to try HMT yesterday. It opened with fire. It will rise to Rs 140 non stop. Just watch this scrip. It is another Gremach into making. The Kochin land dispute is very close ot settlement whereas Banglore land development J V will be announced with a Mumbai based realty co very shortly. Reliance gr has accumulated this stock till Rs 150 pre crash per sources and to the best of my knowledge they have not sold single share. Apart from HMT , try STL Global again a classic case of undervalued stock.

In last run the stock was accumulated by very strong hands till Rs 46 which corrected to as low as Rs 18 in the recent times. The stock is on our watch list and today all of sudden it hit 20% upper circuit with very low volume of 40 K shares. It means the stock will not start firing. It has huge land bank in Delhi and based on this the said stock has potential to rise to Rs 200 very easily which is 10 baggers. If you decide to enter this stock enter in full swing and feel yourself lucky if you can catch any stuff even at 20% upper limit. Still it will scope of 100% rise in next 2 to 3 months.

Instead of rushing for A gr trading which will ourselves promote when the platform becomes ideal, spare your capacity for B gr stocks. You may even try and trade with 1 week horizon. Even a 10% return in a week should be considered very good and I think it is easily possible in this market though we have seen returns over 100% in April alone.

It is in virtue that happiness consists, for virtue is the state of mind which tends to make the whole of life harmonious.

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