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Friday, May 9, 2008

Past is past...
Market was expecting inflation of as high as 8% which did not happen. Inflation was at 7.61%. Majority of the bears are short in the market as market has corrected from 5280 levels. Global markets and oil also allowed them to continue with their view.

This was inevitable on the back of split on the view of experts. Market which is hugely short may just spring back with vengeance on one good news such as oil breaking down. Now any moment oil may break down to head towards 90 to 95 USD. Commodity players must go short in OIL now. The reason is very simple so far as analysts were not sure where oil was heading. As usual when it had come to 80 levels they had given target of 40 USD and now when they have raised the target to 200 oil is set to collapse. This is simply because traders follow their opinions and cut short positions and go long. Suddenly it becomes overbought from oversold.

Same had happened in Gold where I had advised going short at 1030 with target of 810. Now I believe that it may collapse even to 710 in coming months.

Gwalior Chemicals were we had initiated buy call at 56 nobody believed the call and today it is Rs 89 with very huge volumes. A leading US co will either acquire the co or majority stake and open offer will come. Rest you can do with your intelligence. Our IT wing is unmatched. Now ITI is going into overdrive as very soon its ideal land development news will come out. It is common sense when FII and operators have bought this share till 75 in huge qty why will they sell at 40. If you can play with proper value analysis you can make 100% profit. Buy at 40 sell 50% at 60 which is still 25% lower than their cost and hence exit assured and balance forget. Come what it may you can’t forget that ITI has huge value at Rs 40 and at this price it could be even begger’s choice.

Similarly nobody on the earth can stop RDB, Vishnu, Accurate, ITI, Jeyswal and HMT from becoming multibaggers. Smart investors should trade in these stocks on delivery basis where 5 to 10% return every week is not ruled out. In futures you can only cry. Operators are having a very bad habbit of suppressing the prices for that they sell shares. But you try to squeeze them with buying out their qty they would not really love that and would come out from cages to start buying. This has happened in Glawior and RDB.

No man on the earth is rich enough to buy his past whether it is SIR Henry Ford or Late Great Napoleon.

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