i Develop Stocks Advisory

King is King... Inflation will be 9.8% tomorrow and there is no dispute that market has corrected for global clues as well as inflation. At the same time the robust advance tax nos as well as TDS collections can’t be brushed aside. This proves that the valuations have over reacted and growth will sustain at 25% plus levels whereas Senses has factored in 10% growth in corporate earnings. To that extent there is a surprise element is market correction and hence the PE of 14 is fully unjustified. Buying will surface on these nos. In any case the severity with FII were selling papers has stopped and instead value buying has started. Some feathers like rollover will remain which create huge volatility in the market. In absence of required depth from retail the cost of carrying will remain very high and for that the volatility has to remain high. We do not expect market to go below 15000 or worst case scenario 14700 and hence for last 300 odd points if you are getting golden opportunity to enter the market you must enter it. For traders this is the best market. Risk of max of 300 odd points which is really nothing given the way market have corrected and on upside you have at least 3000 points to eat if not more. The risk reward ratio clearly favors bulls at this point in time and therefore traders will do well to take risk at this point in time. You can catch proper momentum and earn good returns then the profit can help you cushion from further losses which could be a money winning formulae. My favorite stocks are back to SBI, Century, B Dyeing, RPL, RIL, Reliance Capital, SAIL, J P, MTNL, IFCI, IDBI and R Com. We will focus on these shares for next 3 months to make our fortunes. Please cut and paste today’s prices all these scrips as I will need feedback from you in Nov 2008 where I will be proving that all these stocks have delivered 25 to50 % return. Not acceptable yet you preserve this. The current correction is at the behest of BULLS and therefore I have reasons to believe that markets will rise in style. KING is KING. It is easier to be critical than correct.