Monday Morning Market Musing - FED Event is the next trigger

This is going to be another interesting week when we will see Bulls attempting to reach Destination 16K and Bears attempting to pull the Sensex down.

Market will reach 16K in its own style but the focus should be on specific stocks and make money out of them. Investment is an art, It is not by fluke that you make money.

Those who are new into stock investments should focus on stocks which have great growth story for future. Those who have made good profits can go for speculation stocks as they have enough buffer for covering in case of loss. Jai corporation was one stock which was punters favorite and I had recommended this around 6K for a target of 10K. It is blazing all guns and moving slowly and steadily. This stock is bit speculative and depending on market conditions the swing can be either ways.

IFCI will finalise the bidders on 25th September after which we will see the dates being finalised for the bidding process and the whole thing will get settled by Feb 2008. However Those who have invested in IFCI at 60 levels can expect a return of 50% to 100% depending on the bidders. I feel 120 Rs is the right price for IFCI and every one would like to have stake in this.

The downside will be limited and it can happen only if the stake sale is halted abruptly or if the stake sale does not happen to one bidder etc and these events have remote chance of happening. Stay Invested in IFCI.

Markets should open strong and there should be some volatility again today. The US Fed is going to meet on Tuesday and some nervousness is there in US Markets. The Fed is expected to cut interest rates by atleast by 25 basis points or 0.25% and some say it can be o.5%. In my opinion it will be 0.25% as FED would like to go slow as Inflation still remains a worry. If the cut happens, US markets will rally smartly and we will see Destination 16K in a jiffy.