Market has corrected and rightly so, due to the pressure on Nifty. Our S C team has in fact, calculated this since last 2 days and made out a case that stay invested in RIL gr stocks by booking profit in side stocks.
From a peak of 12 calls we have come down to as low as 4 calls for the day and 2 new calls were introduced which are trigger based and hence will outperform in the falling market too. Sensex may breach 20 K tomorrow to remove the ticket less passengers who have boarded the train after market crossed 20 K. Yesterday too smart trap was laid which made a correction of 300 points but closing of 100 points plus and today the situation was exactly reverse. Market will take U turn from around 19800 and therefore be prepared for another 300 points correction as the worst case scenario. However, on reversal the stocks which you are holding on would be first to burst. Do not even think to go short though smart traders and operators had taken 6000 Nifty put at Rs 110 to 115 ranges but they are sharp shooters and will reverse their trade very fast and you will get stranded like waiting on the platform for VIRAR train.You know this is the precise reason why we avoid giving short calls though lot of you may get displeased that's why we have not read it before. We do not want to change the views of our trusted members and ready to shoulder responsibility on the calls generated by us and therefore want that those who think they are ARJUN may try to break the chakraview on their own. Weak players, please either use stop losses strictly and exit quickly from the market as you can’t avoid the volatility.
This is typically called “THAKUR bazaar tume marne nahie dega aur hum tume jine nahie denge.” 
This will keep on happening every time you go overboard and buy out of proportion in any stock whether relevant or not. Another reason of 300 point correction was basically RIL and tech. The former was a normal feature of correction on positive news whereas tech was overbought because some analysts had planted that USD will take U turn. We are bearish on tech and would remain so till the time Rupee does not touch Rs 35 or we will review only post Budget.
SBI rights issue the date of which could be announced very shortly this may spark huge rally in banking stocks. Apart from select bank stocks I would bet on IDBI for three reasons one that it is banking stock plus insurance story. If India Infoline is given a price of Rs 1500 plus by market on insurance then IDBI must be valued nothing less than Rs 1000 for insurance alone because at the end of the day no private player can compete Govt infrastructure in this segment. The next trigger is NSE stake sale which could add substantial cash flow in IDBI kitty and third and foremost factor is IFCI if looking cheap at Rs 115 then IDBI is really worth at least 3 times of IFCI. So far FII have cornered huge chunk of IDBI stock and very soon IDBI board will have to announce increase in FII limit in IDBI. The counter has now become very illiquid like MTNL and may burst the way LANCO or PTC had happened. Just buy and hold IDBI till the vallan end as above Rs 180 it will travel in no man’s land.
Bindal Agro, we know better than anybody else because we had broken the details of land deal at Chembur. Even since Rs 8 we were the anchor followers of this co. Now we think the time is set to judge this on realty valuations. Very soon the co. may divest stake in its J V ( land development ) at Rs 120 and almighty fund has largest exposure from Rs20 in this stock and therefore no wonder this stock will cross Rs 120 very soon.
Coming back to cash segment, after my reporting in RDB, huge action has started today. Yes, it is true that the co. people are in Mumbai and could meet fund guys in next 2 days time though it is not fair on our part to state which funds. Apart from what I had written yesterday, RDB has entered SEZ in Gawuhati in very big way jointly with local Govt and hence the valuation will be really rocking.
Whether you meet management or not ( of course you can now catch them in MUMBAI to find out more details ) the fact is tha the co. owns at least 6 times larger land bank than ORBIT Corporation which market can’t ignore. Technically tomorrow is the last day where chances of RDB share cornering can happen because it had returned from Rs 200 earlier where huge volumes had happened. This means those who had entered at that time has got safe passage today and balance would get tomorrow. There after there may not be any looking back for this stock till Rs 900.
For all those investor who can’t buy house must buy shares of realty such as RDB and in 2 years even if your houses become more costly RDB stock could help you getting one.
Another stock which is again original research of CNI is PANYAM Cement. This stock is just about to start its innings two. It could report EPS of Rs 45 from cement for which we need to give value of Rs 600 at least. It has signed J V development for its Banglore land and it has received Rs 130 crs advance. IF advance is Rs 130 crs then the total realizable profit has to be Rs 300 to 400 crs adding another Rs 400 to the valuations. And over all it holds mines worth Rs 2000 to 3000 crs which need separate valuation. In short, it is a case study of Rs 2000 per share. This is the reason investors like CLSA, ENAM and few other funds have cornered this stock. Though we get this stock in D Mat form and brokers hesitate to execute the trades on the ground that it is in Z gr. It has moved from Rs 25 to Rs 120 only in Z gr after we identified the stock and FII buy this stock in tons, I am wondering how FII could execute the trades when BSE has strict norms that no traders are possible above Rs 25 lacs in Z gr…..? I don’t know whether there 2 set of rules for INDIANS and FIRUNG like train on wheel….? Any way this investment idea only for those who can get their trades executed. In any case, we shall be buying this stock at Rs 2000 when it comes in B gr which is also inevitable.
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