i Develop Stocks Advisory

OIL effect.... H P announced better than expected nos as well as the US data was on track. Only factor spoiling the recovery was OIL which touched all time high of 100 USD. Here the theory of consumption comes into play though knee jerk reaction is always the short term call in such scenario. With very thin volumes the rhythm of the market was broken and another bout of selling came in. Nothing unusual as 5300 level was always dangerous as earlier too it fell down from that level. Yet chances had to be taken by die hard Bulls and they did with SL of 5220 and when it was broken correction was on cards and therefore 400 points drop was not surprising. There could be some short covering at 5100 levels because when market recovered from 4700 levels 5100 shown strong character. I think 4910 is very strong barrier on downside now and hence you may change your view if market breaches 4910 and try to become extra bullish only if it crosses 5550 on closing basis. The silver lining is now Rail Budget which should be an indicator of main Budget. We have left with just 6 trading sessions now excluding today for rollover and this is going to account for 2 events rail and main budget. But this time since retail has not participated in the rally the rollover will be troublesome due to lack of volumes which will create volatility. Those who are taking risk today even in delivery stocks may get a good return on Budget day due to huge volatility. Those who can’t take any risk should ideally wait till the time Nifty crosses 6000 which may take time of couple of months. Exact timings and clarity may surface post Budget which is just a week away. Finally Dujodwala decided to raise his stake thr preferential rout which is a pre cursor of its land sell or stake sell story which has taken shape a t least year back. Similarly India Foils is now racing towards its dedicated price of Rs 150 crs market cap on change of hands in the management. RDB too issued their forward earning presentations to FII today. Bombay Dyeing has given a press release of awarding 4 mn sq ft land development contract to Larsen. These things are very vital for taking futuristic decisions of investments. We break stories well ahead of market which generally have positive impact in bullish market but when things go sore these things are ignored by market and hence stock prices starts correcting. Fundamentals and stories never change. Valuations come, may be, delayed in such cases. It is not unusual seeing the price of Rs 90 in RDB and then Rs 325 too and then again Rs 175. Sandur Mangenese after touching Rs 800 plus reacted to as low as Rs 280 in this crash and now rising every day. It last quarter earnings made this trick. This can happen withany stock on a given day. These are intrinsic games of equity market and hence there is no need to make hue and cry. Only thing you should not be in stocks which belong to FLY by night operators where resurfacing valuations is impossible. The ball game is simple. If you are not convinced sell at any price whether it is in profit or loss. The method of averaging should resorted only when the stock crosses your buying price instead of getting out of the stock in case you are convinced about the story. I fully agree with the famous ENGLISH writer ALVIN TOFFLER who has said " Future shock is the shattering stress and disorientation that we induce in individuals by subjecting them to too much change in too short a time."