i Develop Stocks Advisory

Best things never taught The first stock which has crossed our pre cash stock initiation price in S C section is Hindustan Oil. We were bullish in Hindustan Oil and are still bullish in the co though the share price was crashed to as low as Rs 82 and now come back to Rs 133. This stock having crossed new levels is set to roar with huge operator interest. Then the moot question is why did we remove the call from the SC when the stock is firing….? We have hardly initiated any calls in SC section though we have tried to give the calls through optional message system. This was because our primary concern was to pull out those traders who have stuck in these calls. It is also true that majority of the traders must have already killed their positions and also lost in volatility. In any case, market has started recovering as far as call specific view is concerned though Nifty is still a long way. First confirmation in Nifty will come above 5050. Though majority of the Funds, broking houses have lost hopes on market and not ready to see 18K in the calendar year and have started giving sell call for their bread and butter. These very fellow were giving buy call at 21 K. Well, we have only one philosophy that is to stick with our long term vision. This is the reason we have not initiated more buy calls in S C section but either not reduced existing ones. We are pretty confident of hitting our targets of Nifty and also sailing through in our calls though there could be some time lag. ITC, Hindustan Level and Ranbaxy were the major gainers in the Sensex and in all the 3 stocks the ownership is skeptical and controlled. Technology shares such as Infosys, TCS, and Satyam are under owned shares and could show smart recovery if the Q1 nos are robust which is most likely. ACC is another stock where ownership is fully controlled. IDBI and IFCI where ownership was huge is now getting in line as investors are fed up in these 2 stocks. Therefore these stocks could also spark in some time. In B gr the ownership is now absolutely skewed and hence price rise is very easy. Asian Oil is fully controlled stock. FII took stake at Rs 190 and therefore when this stock was quoting at Rs 100 it was at throw away price. Similar is the case with GTC and RDB especially the later. With de merger in place the funds which have bought shares at Rs 300 plus will have to sell at Rs 130 and exit from the stock or buy more to bring it back to Rs 300. In both scenarios new investor will be gainer. In case FII’s do not mop up now they will be buying it from small investors at Rs 250 to 300 levels. The fear of excessive slow down, GDP downgrade and impact of US economy is all over reaction my market players. All this has been factored in the Sensex which has already corrected by 30%. In fact, a renowned research house last week issued report on India de coupling and Sensex target of 41K in 2010. This report too based on extreme pessimism and bubble burst in the form of huge assets correction in Q1 08. Every time post such correction a new bull market has unfolded which can not be seen or visualized on the given day but felt only if you can call your shots on long term basis. What is projected in the most pessimist scenario could be achieved in 12 to 18 months instead of 36 months when the perception changes. Who had believed that we could ever see 16 K in June 2006 but after Sensex crossed 12 K Street sensed and did it and in fact beat the estimate by another 5000 points? Why I am emphasizing on this fact is that the best people in the industry too are biased today and lost their vision the said report could be an eye opener for them. They are learned and educated breed and one such report is sufficient for them to sense the realty. Once it is established that the trend is up and 41 K is not a hoax the long term investors will jump and join the band wagon. Which other assets class is going to give you 200% return in 3 years or a CAGR growth of 67%.....? Based on this small investors and HNI should muster their courage and start investing in their own ideas and sooner they do it better for them or else the same old story is going to repeat….You start entering at 21 K be part of the system till 24 K and can’t exit and scramble once again with your bad luck.. Instead enter now at 15.7 K with lot of pain in the system, be prepared to see the worst or even 14 K on downside and on reversal sell part at 18K and hold the balance till 24 K and ride the world because your entry is then at 12 K which will allow you to exit market at your will. The things we know best are the things we haven't been taught.