i Develop Stocks Advisory

Oversold market 15300 were kept at bay by bears on Friday and market opened with wide gap today. Though bears made another attempt to kill 15300 today but failed. After touching 15400 markets lost some grounds due to intra day squaring off and also for the fact that winding of some Nifty positions as the fear continues. The O I has rose Rs 83000 crs with absolutely no rollover so far and interestingly the Nifty O I including options has crossed 10 crs shares for the first time. The put position is so heavily tilted there could be real madness in this vallan going forward for only short covering. Market has now limited downside as it has completed technical corrections 2 times and therefore inviting host of funds to make value buying. No doubt on the face of it they are readily saying that 4000 will be the best Nifty to buy. If condition deteriorates that at 4000 further lower levels can be seen such as 3600 or 3000 and therefore this has no meaning. Those who have expressed their views are buyers in the market and deploying cash. What will they do if OIL falls to 110 overnight….? Would they still wait for 4000 Nifty to come? Oil for sure is tiring and oil will fall vertically. In fact, if you can remember that Sensex was supposed to be topped out in Dec which did not happen and at 21000 in JAN it happened suddenly and people started blaming overbought market. Similar is the case with OIL with 190 bn USD stake at least 3 times larger than last year and hence as and when falls it will fall to 100, 90 and even lower to 72 USD. There was only one foreign analyst who had echoed my views in JAN 07 when I had predicted OIL to touch 120 USD. The same analysts now has echoed my view and set target of 75 USD OIL by year end. Bag Films, MSP had sterling days today. MSP is still grossly undervalued. How much one tonne of iron ore can cost and how much iron ore MSP has can give some clue to its valuations. In any case co which has applied for Rs 400 crs mining lease rights can’t be valued at 300 crs. Sandur story had started when promoters had borrowed Rs 250 crs for debt clearance, expansion of capacities and acquisitions of more mining leases. MSP is at similar stage what Sandur was a year back. Lot of the people feels that I write only about the stocks I love…? No this is not the case. In fact, investors are not able to understand the market psychology for sure. Last week there were no buyer in BAG films at Rs 33 and today at Rs 43 whole world is after it. The market activity is narrowed and if you go long in unrelated stocks without waiting for their turn you will get stuck. Unitech I had written about and see Rs 750 crs deal has come and stock is up by Rs 20. Major news are expected now in Century Textiles, SBI, RPL and RIL and therefore keep tab on these co’s. Three grand essentials to happiness in this life are something to do, something to love, and something to hope for.