Thursday, February 12, 2015

morning thoughts...

The markets reacted and behaved in exactly the same pattern as intimated , now the coming session is likely to be range bound and consolidation mode.
Technically the markets have held the important levels of 8450 on nifty and looks its an important supports now in coming sessions.
We are quite sure that most of you have marked 28th February 2015 on your calendars. 
After all, the expectations about the new government 'delivering' on its promises are heaped on this date. And while there is typically a lot of noise around the Union Budget every year, the last day of February is particularly very important this year. 
Now, what seems most amusing to us is the fact that investors are actually gearing up for 'post Budget investing'. Based on the expected 'break through reforms', they are readying themselves to pour their entire allocable surplus into stocks. The media and business papers are playing no small role in whetting the appetite for news based investing. And the Budget day i.e. 28th of February 2015 is being projected as the all important day for Indian investors
So, it is certainly a good idea to book some profits on stocks that have ripe valuations or have a good reason to be sold. No doubt that if the Budget is indeed what it is expected to be, stocks in India could certainly get attractive. But investing post Budget cannot be about doing so in a day or week. Nor should it be about timing the markets. Just as there is no reason for you to ignore solid and attractive stocks pre Budget, post Budget investing decisions cannot be based solely on policy upsides. Do not overlook the fact that you will need to be careful about valuations. In addition, companies expected to benefit from policy upside should also have robust business models and good management. 
So do not pay too much attention to the media hype about post budget investing. Continue looking for safe and value stocks even in the days preceding the event. And whether or not the Budget turns out to be a blockbuster event, do not panic. Good companies will continue to be resilient even if the Budget fails to meet expectations. And a sharp up move in valuations of companies benefitting from reforms, will not mean that investing opportunities are lost for good. 

Coming to the commodity markets volatility will continue with bullions , energy and base metals trading on the negative side.

Yesterday's calls sent

Gold Mcx - booked profits at 26677 - short from 26871
Advance Nifty - booked profits at 8675 - long from 8515
Bank Nifty - booked profits at 19020 - long from 18577
Double Bumper Upl 430 ca - buy at cmp 9 sl 5 targets 25 - holding
Convert 10k into 30 k buy Maruti 3500 ca - buy at cmp 52 sl 40 targets 95 - holding
Btst Hdil - buy at cmp 110 sl 108 targets 115 - holding
Jackpot Zee ent - buy at cmp 345 sl 340 targets 360 - holding