Market Comments - Waiting for Direction

RBI increased CRR by 0.5% as I had expected though very few expected RBI to do this. Markets were surprised at the move but Profit booking had to come as we rallied smartly already. I have been mentioning that 20K would be difficult to cross as Valuations look stretched and so we will have to keep moving in a range for some time.

Stock specific activity will become order of the day as some of the stocks in Reliance group are quoting at 2012 valuations. There has been some frenzied run in the Reliance group stocks and even any amount of negative news can take the markets down. FED decision is expected today and so this will be one of the key factors before markets take direction. We are at a stage where some correction is required before we decisively cross 20K.

Reliance Energy valuations are being increased due to the huge valuation of its AP project and 3000 is the target that is being talked in this. Those who have bought at lower levels can stay put and those who would like to enter should wait for markets direction before taking a plunge in this. NTPC will move on REL price movement.

IFCI will keep moving in the range of 80 to 95 for some more days. GMR Infra had some movement yesterday but it should cross 180 decisively before it can cross 200 and then to 250.

RPL is moving based on the international oil prices but the valuations seem to be stretched a bit but whatever seems higher moves further up in this stock market.

Teledata is still being accumulated and very soon I believe there will be upper circuits in this stock. The key event for this will be November 5th when the dividends will be announced and if the combined dividend is 3 Rs also that will augur well for the stock and I believe management knows the expectations from the market about the dividend. This is one stock which looks a safe bet in this market.

Reliance Capital, RPL, Rel Industries all are approaching my revised targets once again and whenver I revise the targets for one year, they are getting done in one month :)

Markets should open weak today and there should be some volatility in the market before the key event unfolds today.