Markets corrected yesterday due to weak global cues but if you see the amount of correction, it clearly showed that Bulls were in control not letting market fall.
US markets rallied smartly yesterday and hence we will see a very good opening and then there will be the usual volatility before we see good closing. We should see 6000 on Nifty by Thursday if all goes well.
Tech Stocks are taking a beating but as I mentioned it is good to time to add Stocks like Infy and TCS to your portfolio. However the rupee appreciation effect is still there and hence add theses shares only as part of your free shares and wait for 2 to 3 years.
GMR Infra is buzzing on stake sale at 280 Rs to QIP and hence it moved up smartly even though it was in F & O ban. All depends on the positions during settlement time.
I will write more about Reliance Petro only after it crosses 300. When SBI was 1000, many analysts downgraded it to 600 levels but where are the so called analysts now? SBI moved up smartly to cross 2K. Same will happen with Reliance Petro. Imagine why will any one buy 18 crore shares at 223 Rs when there is no value in it. Rest is your call.
Minda Industries is being accumulated and should move up smartly to 300 Rs in one month's time.
IDBI will move smartly to 200 Rs in quick time as NSE is likely to offload some more of its stake and IDBI has stake of NSE and also IDBI has stake in Mundra SEZ and hence it should move smartly to above 170 levels today and then closer to 200 levels.
Wednesday, November 28, 2007
Market Comments - Its Bulls turn now
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6 comments:
Hi Sri,
Any stocks that are likely to issue bonus stocks in coming months?
Why would anyone sell 18 crore shares at 223 Rs when there is so much value in it?
Hi Abhishek,
There could be various reasons for selling of RPL 4% stake.
1. RPL wanted to get Chevron to buy at a better price if it wanted to increase its stake from 5 to 29%.
2. As RPL shares are getting banned in F & O which is for the first time a NIFTY constituent is in ban, they wanted to increase the free float of the stock which will not result in ban.
3.Every one would like to make some money in the boom and by selling 4% at good rate, they get good value for the remaining 71%.
If you are an investor, you buy 20000 shares at say 10 Rs and when price moves upto 50 Rs, wont you sell 4000 shares to make yours risk free eventhough you know it is a good stock?
RPL sold only 4% out of 75% it holds which is negligible.
There are innumerable examples that I can give for this.
The most recent one is that of Godawari Power and Ispat.
GPIL issued IPO at 80 Rs and it there was some stake sale at 121 Rs in this.
In the May crash stock even went to 40 Rs but did the insitutional investors panic? No...
Why did the institutional investors buy at 121 Rs and why did the promoters sell the stake? Same questions can be asked here...
Now what happened?
Stock moved from 60 to 300 Rs in about 10 months and all those who bought at 121 Rs have sold their stock happily. If you are confident in a stock buy or else you can look for other good stocks.
I believe RPL has good value in next two years with 1000 Rs target
I just present my views. It is upto you to take it or not.
Thanks,
Srikanth
Hey dear,
i am holding 2500 shares of Tele data informatics. Seeing all the messages in moneycontrol board. i am getting scared like whether the price may go down from 66(my avg price). Plz help me and put more news on this teledata counter ya.
Hi SriKanth,
Again K.B. what is your opinion about the Burnpur Cement IPO I would like to apply for 2 lot's, but some experts in money control saying not to apply. Suddenly I decided that your opinian is final and waiting for your reply, if no means which is better in current IPO.
hi srikant
what is your take in RAIN CALCINING?
Have u analysed this scrip???
would like to know your opinion on this stock
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