Hi
We expect markets to continue to do well in the coming time. Almost all markets are giving positive signals. The US market has played as per requirements and is now confirming that the positive run will extend for some more time. The Indian markets on the other hand have joined the party late, and that too just 3 weeks ago.
India will be in a hurry to catch up as more time elapses. However, for this present week we expect the markets to consolidate their gains, and maybe decline a little. This doesn’t mean that stocks should not be bought however, coz. not all are in the same phase/ cycle.
Ever since our call of ‘Cover your shorts’ on January 08, 2012, Sensex has risen from 15848.80 to 16739.01. That’s a gain of 5.61%. Tata motors was suggested as a buy at Rs 203. It has since moved on to 218.90/-. That’s a gain of 7.83% in 2 weeks. If you were dealing in Futures, you could multiply these with 5. Our other directional call on the $ vs rupee has also played out very well with the $ falling.
Some other stocks were suggested last week. They too are expected to play out well.
What you can do is adopt a portfolio approach, and buy a few of these suggested stocks together or get in touch with me. For most of these stocks the drawdown is about 10%, so don’t be too concerned if you buy and the stock starts declining. That’s coz. it’s a suggestion without exact timing. Exact timing usually cannot be suggested on media like these unless its for a longer duration call. Exact timing on shorter duration has to be performed and would demand your much closer contact with me.
Apart from these, some picks with a longer term horizon (2-3 months) are:
A. Pharma. Picks would be:
1. Abbot India, CMP Rs 1473.15/-
2. Dr. Reddy’s Labs, Rs 1645.15/-
3. Sun Pharma Rs 527.75/-
B. Cement. Picks would be:
1. ACC, Rs 1150.05/-
2. Ambuja Cements 157.80/-
3. Madras Cement s, Rs 107.60
C. Financial services:
1. HDFC Ltd Rs 690.55/-
2. IndusInd Bank, Rs 280.95/-
3. Kotak Mahindra Bank, Rs 493.15/-
4. LIC Housing Finance, Rs 239.45/-
Other stocks would be:
1. Andhra sugars, Rs 121.95/-
2. BOC India , Rs 312.80/-
3. Grasim, Rs 2489.20/-
4. Hindustan Zinc, Rs 126.80/-
5. INEOS ABS (India) Ltd, Rs 600.35/-
6. Jubilant Foodworks, Rs 834.20/-
7. Kaveri Seed Co. Ltd, Rs 470.70/- (great in financials too)
8. Mandhana Industries Ltd, Rs 231.2/- (again, great in financials too)
9. Omaxe, Rs 145/-
10. PVR Ltd, Rs 139.10/-
11. Tata Coffee, Rs 875.80/-
12. Wipro Ltd, Rs 413.70/-
If for this week you’ve to buy only 3-4 stocks, make them
1. Madras Cements, Rs 107.60/-
2. INEOS ABS (India), Rs 600.35/-
3. PVR Ltd, Rs 139.10/-
4. Wipro, Rs 413.70/-
Regards
Akal
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Technical analysis of Market Instruments at 1/22/2012 10:34:00 AM
