i Develop Stocks Advisory

Consensus call....

Market really was volatile but the fact was clearly written on the wall that the Bull Run is on. Yesterday Nifty was hammered to 6210 and today too was hammered to begin with but the gap started narrowing and Nifty got consolidated 6250 and 6260 levels which made us to spring back in action to get out of Nifty and after our call Nifty crossed even 6335 in no time.

However few bears who are not comfortable with market at 6300 decided to take on Nifty and sold heavily the selling was so huge that Nifty vertically collapsed from 6335 to 6230 levels in no time. Bulls digested entire selling because they are aware that Infosys results are set to bring cheers in the market though it may be short living. Huge short covering in oversold Infosys could set Sensex on fire. Meanwhile fresh buying has started in R Com and RIL which might pull Nifty to 6690 levels very easily in this vallan.

Generally market volatility is good from Bulls perspective because at new Sensex every 50 points drop means end of the Bull Run and every entry in new orbit means fresh entry of speculators. The only hindrance which I see is that market regulators has to expand the limits in futures and options otherwise retail and small investors will lose their shirt and pants every next day. This is so important even from the point of view that FII will start selling short from FEB 1 and with current market scenario of getting stocks limit full every second day will add the cause of the market woes.

Last time when these limits were revised the OI was Rs 65000 crs and now it is Rs 130000 crs and hence the revision is must. This fact has been used every now and then by big muscles to screw small traders. E g RPL came out of BAN when it was Rs 190 and re entered ban today when it was Rs 255 yesterday and stock corrected to Rs 230 simply because it went into BAN period forcing small traders to square off positions at huge losses due to mark to mark. This needs to be stopped once for all. It is not giving either healthy picture of the much talked and improved world class capital markets. Correction and rise should be left to market alone on fundamentals instead of these factors governing. Any way, those who trade in Futures have to be prepared to this kind of manhandling.

Ispat Industries last time was in Bull charge at Rs 88 when the news of promoters selling its Peddar Road premises at Rs 83000 psf hit the street which did not appeal to us because the stock was hugely run up. It is the same stock which we had picked up at Rs 10 a year back with virgin buy call. Now having corrected from Rs 88 to Rs 68 that too again on the back BAN in futures, it provided an ideal value in this stock which made us select for delivery instead of trading. It is learnt from reliable sources that Ispat is spinning off its energy biz like all others and selling 25% stake to PE at Rs 700 crs. This could spark huge upside in this stock and we expect a rocket like movement from tomorrow in this stock.

There is a sense of insecurity in traders as well as investors and most of them are factoring big fall from Jan 15 then Feb and prefer to sit on huge cash and not ready to bet on. We interact with most of the centers in India and the consensus is in favour of stay away. So long as consensus does not come in buying mode which had happened in May 2006 market will not reverse for sure though small intermittent corrections may come and go. Today’s reaction was mid cap is correcting and therefore feeling sad…? Dear, mid cap had huge run up and some rest is required and hence this is happening. Who has told you to buy mid cap stocks at their peak….? The GURU mantra of making money is only enter the stock when it is young and book sizable profit when it becomes adult. Therefore in my opinion there is no need to panic and stay invested. It should be always remembered that…..

History may be divided into three movements: what moves rapidly, what moves slowly and what appears not to move at all. This illusory moves may change colour like the LIFE.

Pahela Padav paar kar diya...

Market did cross 21K which has made few investors to book profit and it is always evident that when Funds want to exit, the exit has to happen at lower levels. Hence market corrected but the same will recover by tomorrow afternoon and it will travel back into new territory. Another reason for correction is that yesterday global markets were down traders picked up the call and went short therefore there was short covering. Today exactly opposite has happened. Market opened 250 points plus on global clues which made traders to jump on the bandwagon. Squaring off will wipe lot of gains and before they come for squaring off market drivers threw some positions….

Please do not draw conclusion from Nifty sell call that market has completed its bull run…No way just wait till tomorrow afternoon.

Barring this technical problem there is nothing wrong in the market. One fact which is driving Nifty lower is unwinding of retail positions which are solely attributed to withdrawal for margin funds by broking for diverting the same to REL power issue. Retail out means Sensex bottomed at higher level. It is so pity that this happens in this country again and again which is worst than the Australian cricket. The genius market makers must see that retail earns because retail is the backbone of this country and we must be proud to make Indian’s richer what matters if some GORA loses ground. If we see the history late Mr Dhirubhai Ambani never left his investors in lurch and yes that is the reason the age old shareholders of RIL are still not ready to sell RIL shares irrespective of the fact the said stock has become 10 bagger in just 3 years. History helps create future but investors need to be loyal with that group in particular. I am one of the stronger follower of RIL gr policies and have no shame in admitting in this forum. To the best of my knowledge this stock will remain worth even at Rs 10000 and nobody would be able to call their day on this stock. The respectability of this gr is so visible that the late Dhirubhai was one of the visionaries who could sell a 100 year YANKEE Bond in his times. I will not be surprised if RIL gr announces doubling capacity of RPL soon after it starts commercial production which will keep all who have given sell call in RPL high and dry. At Rs 400 these very firung will come and re rate this stock.

If retail investors show character they will earn wealth. At I Develop, we have helped investors amass huge wealth without the instrument called wealth management. Now a day’s new buzz has started i e wealth management but I am not sure whether it is meant really to manage the wealth or access the wealth. I think in India this scheme must be introduced with strict compliance and compulsory insurance so that the capital of investors will be protected.

RPL, RIL, IDBI and IFCI will remain our top picks apart from Punj Llyodd. We have initiated buy call on Landmarc Leisure once again but this time it has become adult story and not penny stock. Co has huge hidden value in the forms of existing mall as well as integrated module of inserting another 10 such malls. S Kumar has gone on record to spin off realty from S Kumar Ltd which was picked by I Develop at Rs 13 and already 15 bagger is set to use the de-merged land for the aforesaid purpose. There is a possibility of placement at Rs 17 which means stock has upside of at least 3 times before the real value unlocking story starts. We have vested interest in the stock and may buy and sell in the open market and hence members are advised to do their due diligence before act on this stock.

My comments are strictly for our paid members and hence any outsider acting on my comments which are circulated illegally may be doing so at their own risk and without any liability of I DEVELOP.

If you devote your life to seeking revenge, first dig two graves.