Markets are moving at a fast pace and even Infy results have been ignored as expected in my yesterdays comments. However this cannot continue for long and if it happens the retail investors will get caught on the wrong side.
We should have had good corrections but due to huge FII inflows this did not happen. However market cannot go like this and so I have been cautioning you to be careful and only enter for a quick exit. DO NOT worry that you have missed the last leg of the rally. If you had zero cost portfolio you would have enjoyed the rally. Once 19K is crossed it is time for you to even sell your zero cost shares and wait for correction. Even your zero cost shares, you can make some money when market corrects as it is overdue. Start selling at every rise in terms 0f 10% at every 100 points or so. Correction is a must and it will happen. If this does not stop here then there will be a huge meltdown. Be cautious and limit your exposure.
Sensex EPS for FY08 is expected to be 850 and for FY09 around 950 to 1000. So our sensex is at a PE of 22 for FY08 and even for FY09 also we have a PE of 19 to 20. Two years back we had a meltdown because the PE of 16 was also considered high. You can just imagine at what risk level we are. If sensex was to correct to PE of even 17 which is higher markets can correct 4000 points !!!!!!!!
Powergrid corporation target is 200 in one year but accumulate at lower levels. It will come down very soon as it has run up considerably. 80 to 90 price is possible in this depending on market correction. One stock which is moving non stop is Jai Corporation. It is because of the SEZ profits that Jai Corp is going to get as the owner of Jai Corp Anand Jain is close to Mukesh Ambani. It will cross 20K ( before split price) today.
My stock picks link :
http://indianstockmarketscomment.blogspot.com/2007/09/comments-on-current-stock-picks.html
My other blogs
http://indianstockmarketsquery.blogspot.com
http://indianstockmarketsinfo.blogspot.com
http://calculatemyemi.blogspot.com
Friday, October 12, 2007
Market Comments - High Risk Zone
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1 comment:
Hi Srikanth,
Firstly, awesome site. Really nice of you sharing ur knowledge on Stock market, esp with newbies like me.
DO u have any info on Supreme Petrochemicals, its trading @ CMP 27 now, and it looks good.
Cheers,
Shahed
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