Market Comments - Rollover Problems

Markets corrected from the peak as there were huge positions to be rolled over in F & O for this month. With Friday and Tuesday being market holidays we have only 4 days to rollover and so this was good opportunity for bulls to rollover when market rallied smartly.

This volatility will be seen till Dec27th but after this there will be a decent rally and there should not be any worry as it will be like beginning a fresh innings. It is a like batsman getting out after making a triple century but it will be different when he begins a fresh innings.

IFCI deal was cancelled which means that the stock will crash on opening today and it can be as high as 20%. This will be disappointing news for short term holders of IFCI but these type of things should be taken in stride. If you see my recos, I have put this stock IFCI in speculation stock list because of the nature in which the stock price was moving up.

Now IFCI can be available at around 80 Rs and it is only short term traders who will suffer the loss. Why? The reason is simple. IFCI wanted a price of 150 Rs as its bid price as there is lot of hidden value in IFCI. If institutions buy at 107 Rs and some one is ready to buy at 111 Rs then is it not the price anything below 100 is a golden opportunity?

IFCI will go down temporarily but just watch the price of IFCI after 3 to 6 Months. You will see the price of 120 again. This means if IFCI is available aroudn 80 today, it will give you 50% returns in 3 to 6 months. If you hold it for long term of 2 to 3 years, you will get excellent returns and target of 500 is possible. Those who are holding free shares in IFCI can continue to hold so and even may be add some at lower levels to make some more free shares after 3 to 6 months.

There will be lot of volatility as we have only 4 days left in this month for the F & O expiry and after Dec 27th, it will be a different story. The advance tax numbers show that profits that will be reported by companies will be good and Reliance numbers look excellent.

Powergrid is planning to move into entertainment sector by tying up with Zee entertainment and it will be additional profits for this. We may see demerger also in future. Please try to get some of powergrid shares at lower levels and hold for 2 to 3 years. This is a must. For short term holders you may get 50% returns ie 200 levels in 6 months.

There is no news from Teledata on listing date but I expect it will be available soon.

My last column in this blog will be on Dec 28th as I will be taking of on Dec 31st. Please register yourself asap to avoid delay in getting your access created. Please see the messages below for registration details.