i Develop Stocks Advisory

Bears in pain... Bears are not happy with inflation and nos and have opened short book again with great veracity but surprisingly all their sell positions are underwritten by strong hands. Bears had been trying this for last 3 trading sessions and wanted to break 15000 desperately. They are not going to allow Sensex to cross 15300 easily because they believe that if 15300 is not crossed then they try to take market is new low. All the best to them. They have even spread rumours of fresh outbreak of war between IRAN and IRAQ which will spook oil and bulls party too. Undoubtedly oil is going to create panic for short sellers as always happens but not for too long. Oil has to fall and it will fall like a miracle. The fact that repo rate can’t much create inflation is good for market and funds have started accumulating battered value stocks such as IDFC, Unitech, Tisco, SAIL, RIL, Reliance Capital and RPL and most of them were spotted by our SC team in generating successful trading calls. In cash segment MSP, Jeyswal and Bag did reasonably well with volumes rising. Bag could be a dark horse in media sectors. It is launching its own T V channels shortly which will give the same kind of valuations what TV 18 or NDTV is getting and for that a placement mandate heard is given to a leading merchant banker at Rs 125 per share. The end destination is Rs 500. Cut and paste this the time its new powerful promoters announce launching of TV channel. This stock is in affordable range where you can buy in thousands and lacs but certainly after 12 months you will be buying in 500 to 1000 shares only. Coming back to market there may not be a different consensus on the market that it is range bound between 14000 to 18000 as far as knowledgeable veterans are concerned. Extreme pessimists are waiting for 12000 and extreme optimists like me are waiting for 20000 plus. I am not GOD to remain so bullish but I work on some other rationales which normally others forget. I am an economics student. I have been taught that all the forecasts on a given point are made assuming all other factors constant. E g here it is presumed that oil will touch 150 and 200 USD. It is also presumed that inflation will remain high and will fall only in March 09. It is also presumed that rupee will slide to 48. All these variables are subject to radical changes overnight. My working which is based on the data given by our economists suggests inflation will moderate sooner, oil will fall sharply and rupee will rise to 41 levels again in coming months. These factors go against the gama and beta and market may not behave what consensus agree. In any case, the best investment theory is buying when everybody is seller. Few smart Funds follow this and they have started doing it. Others who rely on this class just follow the flow of water. Wind blows when the followers rise and suddenly you see a change in scenario. Liquidity rises. We are back with our trading strategy in SC section which has produced handsome results so far. Since market will remain volatile because the existence of bears we will be booking profits at will though at shorter intervals. The option of standing for long tern gain or loss will remain vested with the trader alone. You know for sure that what targets we initiate on first day do come in 2 to 3 months. This can be used even for delivery purpose. Our market operators are genius and I know for sure that they are better drivers than any foreign hands. A man of genius makes no mistakes. His errors are volitional and are the portals of discovery.