Market Comments - Scaling Back 20K

Good Morning to all of you and thanks for the overwhelming responses that have been put by all the readers. I am not in a hurry to restrict this blog but I will let you know the plans for restricting the blog.

As I had mentioned in my comments yesterday that Bulls were in control of the situation and they had seized the iniative yesterday itself and with US Markets in green and rallying smartly on good economic data we should see Bulls scaling the 20K peak again.

There are few investors who try doing lot of Analysis and calculations before they buy. They must remember that stock picking is an art and it is not restricted to the basic calculations alone. One should be able to see beyond the numbers and then decide on investing.

GMR Infra is one stock where investment would not be possible if you look at the numbers. GMR Infra EPS for current year may be around 2 and if you see the price, the PE ratio will be 130+ and it is raring to touch 300 very soon once the GMR Energy IPO is finalised.

There is lot of confusion on GMR Infra EPS and if you see the BSE site it does not show the consolidated EPS for GMR Infra group and instead only GMR Infra standalone EPS is shown which will then make the PE Ratio run into few thousands. Many investors missed investing in GMR Infra because of all this calculations. GMR Infra is one stock which has excellent mix of business and is definitely a multi bagger if you have patience to invest.

RPL and RNRL are moving because of the future that is lying for the stocks. Those who want to enter this stocks now can enter and forget this stocks for a year atleast. One should be ready to buy the stocks at every dip of 5% and invest without any fear.

Teledata has given the required seven day notice to BSE on Decemebr 4th for listing of Teledata Informatics. Based on this, Teldata should list on December 12th or 13th. Once Teldata Informatics lists, the other two demerged entities should list by end of December. Good luck to all teldata investors. I advise all the investors in this stock to hold on to the three demerged entities for atleast an year to reap rich benefits.

IFCI will most probably fetch you 150 Rs for short term. This will be known after December 14th and it will be around 300 Rs in one year. Long term investors can continue to hold the free shares if you already made in this counter.

IDBI will be one star performer in long run after SBI. Watch out for SBI, IDBI and ICICI in banking stocks.

Powergrid, NTPC and PTC will be stellar performers in power sector. They will move up smartly till Reliance Energy IPO goes through.

Nagarjuna Fertilisers has already crossed my target in the speculative stocks list and it should now reach 100. Arvind Mills will also move up smartly as there is talk in the market about demerging its retail arm.