Market Comments - Reliance Petroleum's Day Out

Markets moved up smartly yesterday but based on the positions markets had to give up the gains as it was the settlement day in F & O yesterday.

However if there was one stock which hogged the limelight, it was RPL. As I was expecting it to explode any time, it did in style in the last hour. This was presumably because of huge short covering which came at the last minute. Today we will have new series beginning in F & O and so we should see smart rally in the counter till 250 before consolidation. DO NOT worry about short term movements but try to make some free stocks where ever possible. I certainly see RPL around 1000 Rs in next 2 years.

RPL reminds me of the quote that I like " When you do not see Stars in the sky, it does not mean that they have disappeared forever, it is only a matter of time before the clouds move away and you see the stars twinkle again".

One more stock which I consider as a litmus test for myself is Teledata. The listing is expected in another 10 days and so I expect the demerged entities will give a value of around 90 Rs which means a return of 50% in near term. Even if it does not happen, I am sure the combined entities will fetch 200 Rs worth in one year. Teledata Marine solutions will lead the pack as it will be given higher PE ( atleast 5) and it is expected to grow at good pace. Watch out for the listings in December.

Markets should start fresh rally in December series but we will see markets moving between 18 K and 20 K for some time as we had moved up way ahead of time. However stock specific activity will continue.