Market Comments - Global Melt Down

US markets tanked yesterday and there is a sell off in Asian Markets today. Our markets will also open weak and there will be volatility again in our markets today. We may see below 19K today and this should trigger some panic in the market after a long time.

Forget about sensex and keep adding my stocks as per your comfort. Oil prices are close to $100 and this can increase further. There were a few Analysts who say that Reliance Petro can touch 1000 Rs in next 2 years based on the expected increase in oil prices. Though the valuations are expensive, considering the fact that RPL will start operations atleast 6 months before the original completion date of December 2008, it should have good earnings in the first year. I had expected an EPS of 5 in the first year for RPL but this can now be even 15 based on the oil prices and in the next year it can even go to 30. 1000 Rs for RPL is surprising but the way oil prices are moving up, it should not be impossible for this stock.

RPL had reached the limit in F & O for this month and hence there was a big sell of in this counter. This is the first time a NIFTY constituent has touched the market wide limit. However we should see good buying opportunity in this stock if you have long term vision.

IFCI will still remain in the same range till the bidding news is out but if you try to stay put in this counter with your free stocks, you can get 400 to 500 Rs in next 2 years.

IDBI, SBI are still on course and they should give decent returns in next one year.

PTC and NTPC are good bets in power sector and powergrid also is one of the good stocks to buy in the correction mode though it refuses to come down much.

Infosys is close to the bottom and so is TCS. Try to accumulate these two at lower levels for a quick rebound. However try to put your profits in the IT stocks as the rupee effect is still going to have effect on IT stocks. If you are a long term investor with 3 to 4 years vision, then buy and forget these.

"I wish all my readers a HAPPY AND PROSPEROUS DIWALI".

I hope many of my stock recos will give 100% returns in one year and my pick of the year will be TELEDATA and I hope to see a 300% return in this by NEXT Diwali.