i Develop Stocks Advisory

Time to squeeze asset class…… Once again market danced to the tune of Asian markets proving that de coupling has not taken place for sure. Analysts are busy tracking industry data and making their mind that the slow down has started. The only catalyst so far saving market was huge liquidity which has now evaporated and hence the volumes too dried. Brokers having burnt the fingers hugely are refusing to lend margin funding. This is a regular assessment made by all the market wizards whenever market fall vertically. This time it is no different. The volatility is there as explained due to lack of volumes. Have you seen volumes of 250 shares in a stock like ROMAN TAR ever before…? Improvement in volume and reduction in volatility is possible only if retail participation starts which is a missing link at the moment therefore do not expect market to trade in the range of 100 odd points (BSE) for next couple of months. Market is just 4 days away from vallan end and these 4 days if somebody manages to hold their positions I think one can conclude that the worst is over. Budget falls in the next vallan which will decide the course of market in March. Out of every 1000 traders 999 and holding view that recovery is impossible and it is better strategy to go short and earn. Well, we have not learnt going short and therefore always take a back seat in falling markets. Even though we can generate sell calls we will not do for sure because it could change long term perceptions too. If you need to outperform you need to find out only 4 super doper stocks which can spark your annual returns in more than 100% even if you go wrong in 50% stocks you have in portfolio. We had Sandur in 07 which had done the trick for us. We had Kemrock in 06 Orissa Spong in 05 and on. In 08 we have Asian Oil, Minda, Anil Special Steel, Panyam, Accurate Transformer, Kirloskar Brothers, SS Duncan, HEG, GTC, Bombay Dyeing, India Foils etc. Few of them will returns like Sandur in 08 and 09 irrespective of market conditions and hence those who want to make fortunes may stick to their core portfolio or even use the current fluid situation to add more if they wish to. Those who have lost faith may even exit from these stocks and enter stocks of their choice of asset class of their choice. If the bear phase has started then for sure you will get screwed in any asset class whether is it debt, currency, gold, realty or for that matter equity. What is the guarantee that GOLD will sustain 12300 levels now…..? It had a dream run of 40 percent rise in 6 months and 25% correction from this level is not ruled out…? This last leg of rally is on account of huge short covering and short term topping of price is seen…? Commodity traders though have de coupled with equity market, may turn their table back to equity once they lose shin in GOLD. This makes me to believe and continue to believe that equity is the best class of assets in any market and your identification after proper understanding can give you stunning returns in equity provided you are here to stay for couple of years. For daily traders I think equity market is no solution for the time being and traders should come back only after Nifty crosses 5600 because if Nifty crosses 5600 then nobody on the earth can stop it from crossing 7000. Contrarians will always be there and views are definitely divided and ratio too very very unfavorable and really speaking for long term investment a better time than this can never ever been imagined. Always there is a light at the end of the tunnel. Sometimes, when one person is missing, the whole world seems depopulated.