i Develop Stocks Advisory

Temperament... The bear attack continued. But the fact remains is that market was extremely oversold yesterday on the back of huge short selling. The buzz on the street was downward circuit and hence selling short. The reason for lower circuit is probably inflation which is expected to climb further this week end for sure on the back of rising prices. But the real concern of traders is inflation would touch 9% or may be 10% if petrol prices are allowed to hike. Both the events are inevitable. Inflation will climb to as high as 10% on petrol hike of Rs 3 per liter. It is very much true but what is important is that the same is already priced. Though Nifty touched 4660 today for me it is already all time low because Sensex rose by IT stocks for a while. If you take IT stocks valuations of FEB or March and then revisit Nifty nos you will get the answer. It is also true that the buying depth is not immerging from FII but it can’t be ignored that the selling depth is being absorbed by the market maker. I am not to the fact that market will rise one way to 6000 because it is still few more events has pass for happening the same. But at the same time market will oscillate now onwards. I am seeing value buying to start very soon from every nook and corner. So far we have resisted from generating buy calls in A gr because we knew that B gr was on fire. Now it is A gr will remain on fire and lead the show form the front. All A gr shares which are available at throw away prices such as IDBI at Rs 80, Punj at 275 will find takes come what it may. I am sure market will find its bottom very soon and start regaining its lost glory. Nifty will first test 4830 again because most of the punters have been trapped short in Nifty, RIL, J P, IFCI, etc. I think we will solve the complaints of few traders who were really not happy with B gr calls but friends it was market. We are not very much comfortable with A gr where sheer value is now available. Only one gurumantra must be kept in mind is that keep on trading fast. Keep on reducing your cost faster and if possible try to transfer the trading profits into portfolio delivery so that your exposure remains constant. Excess leveraging is always dangerous. We generated 5 trading calls today Jeyswal Neco, J P Associates, Bombay Dyeing, Reliance and Nifty. All met with huge success with profit ranging from 2% to 5%. There is no personal charm so great as the charm of a cheerful temperament.