Market Comments - Volatility to Continue

Markets rallied smartly yesterday and were up 400+ points and we are close to 15 K once again. As I had written in my previous posts that markets could run away in a jiffy even with a slight hint of positive cues, they did it in a style. This has happened after the twin blasts in Hyderabad which shows the resilience of our markets.Markets can be volatile for the next few days as the run up is sharp. We will continue to have this volatility till US Markets are stable. Our markets also should be ranged bound between 14 to 15K till we see some stability in all world markets.

GMR Energy which is subsidiary of GMR Infra has been awarded the 180 MW Bajoli Holi project by the Himachal Pradesh Government. This has been awarded for a period of 40 years. There are many more such projects for GMR Infra which are expected and so we should see very good returns from GMR Infra if one can invest for 5 years in this stock.SBI, IDBI, ICICI bank were smart movers yesterday and SBI should see the target of 2500 in next 6 to 9 months and even a target of 5000 in this is not ruled out in next 2 years if you take the valuation of all its subsidaries.

The key to success in Stock markets is having patience. If you do not have patience then you cannot be a successful investor. There are many who invest 1 lakh rupees in a bank and get their money doubled in 8 years or so. They wait patiently in that case but when it comes to stock markets, one should be happy if the investment doubles in even 4 years but many of them do not realise this and instead want the investment to be doubled in 2 to 3 months. Please think of realstic situation when you invest in stocks and wait patiently for your stock to grow. There may be some investment failures which are beyond ones control but that should be offset by gains in other stocks if you wait for enough time.

"When you are up, your freinds know who you are.
When you are down, you know who your freinds are."