Open a trading account free of cost and get personalized service from our side without any cost.
For more details, please visit
http://niftyfiftystocks.com/offer
Rgds
Ankur
Thursday, December 2, 2010
Thursday, January 24, 2008
Wednesday, January 23, 2008
Market Bounce Back
After two days of mayhem at the markets, there has been some attempt of a smart bounceback today. It was a good day for the investors after seven consecutive and relentless falls, wherein the markets opened with huge gap up and proceeded to trade strong and stable for most part of the day. Sensex also recorded the biggest single day gain of over 1,200 points during later half of the day and finally shut shop with substantial gains.
PN Vijay, Portfolio Manager, said, "Over the next week or two, I definitely expect some buying to emerge. In the last two days, there has been a severe cutting of positions by brokers and banks on clients who do not come up with the margins. In the last two days markets have been driven by the market internals and my sense is that between today and tomorrow heavy FII selling should get slowly eased out as liquidity comes to these intermediaries. Going forward, the market is a screaming buy at this stage for retail investors. There is a World Bank report, which said that India among the large countries is the least dependent on the US for its economic growth. So the retail investor should just forget what the foreigners are saying and just keep picking up good stocks."
PN Vijay, Portfolio Manager, said, "Over the next week or two, I definitely expect some buying to emerge. In the last two days, there has been a severe cutting of positions by brokers and banks on clients who do not come up with the margins. In the last two days markets have been driven by the market internals and my sense is that between today and tomorrow heavy FII selling should get slowly eased out as liquidity comes to these intermediaries. Going forward, the market is a screaming buy at this stage for retail investors. There is a World Bank report, which said that India among the large countries is the least dependent on the US for its economic growth. So the retail investor should just forget what the foreigners are saying and just keep picking up good stocks."
Sensex stocks that are at attractive levels now
I’ve actually looked at three parameters. The first parameter is the PE ratio, the second is how much are they away from the 52-week average and the third parameter is how much are they away from the 200-day moving average, especially the cement, IT and the auto stocks which look very attractive.
Take the case of ACC. It has a PE ratio of about 11.8, off its 52-week high by almost 45% and off its DMA by about 40%. Same is the case with Infosys and TCS. They have a PE ratio of almost 13-14 that’s all. They are off that 52-week high by almost 40% and off the 200 DMA average by around 30%.
M&M and Maruti look very attractive in case of the auto stocks. M&M is off its 52-week high by about 37% and off its 200 DMA average by about 20%. Meanwhile, Maruti is at a PE ratio of about 10 and off its 52-week high by about 35%. Tata Motors is at a PE ratio of 15 and it’s off its 52-week high by about 32%.
Take the case of ACC. It has a PE ratio of about 11.8, off its 52-week high by almost 45% and off its DMA by about 40%. Same is the case with Infosys and TCS. They have a PE ratio of almost 13-14 that’s all. They are off that 52-week high by almost 40% and off the 200 DMA average by around 30%.
M&M and Maruti look very attractive in case of the auto stocks. M&M is off its 52-week high by about 37% and off its 200 DMA average by about 20%. Meanwhile, Maruti is at a PE ratio of about 10 and off its 52-week high by about 35%. Tata Motors is at a PE ratio of 15 and it’s off its 52-week high by about 32%.
Nano Laptop!!!
Call it the 'Nano' effect - HCL claims to have done to computing what the Tata's have done to automobiles. At Rs 14,000, HCL Infosystems has launched what could well be the world's cheapest laptop. CNBC-TV18 finds out if like the Nano, Mileap will catapult HCL into tech history.
USD 2,500, you can buy a car, then USD 350 is all it will cost you for a laptop. Aptly called Mileap, this laptop is miles ahead of competition in both cost and size. The no frills version of the Mileap series costs a rupee less than Rs 14,000 and the one with bells and whistles costs Rs 10,000 more.
Like the Tata's, the company says it worked backward to arrive at the figure of Rs 14,000, which is at least Rs 5,000 cheaper than its nearest competitor.
The no frills version, comes with an Intel Celeron processor, a 7-inch LCD monitor and a memory of 512 MB. But at 2 GB, the flash drive is weak to put it mildly. This machine comes loaded only with the Linux version, however, the high end version comes with Vista Home. Also the no frill version comes without the CD or DVD player.
This machine will hit the stores on the January 26, while the company has not given any sales outlook, it's hoping that this destructive product will take its share in the laptop market well over the current 7%.
USD 2,500, you can buy a car, then USD 350 is all it will cost you for a laptop. Aptly called Mileap, this laptop is miles ahead of competition in both cost and size. The no frills version of the Mileap series costs a rupee less than Rs 14,000 and the one with bells and whistles costs Rs 10,000 more.
Like the Tata's, the company says it worked backward to arrive at the figure of Rs 14,000, which is at least Rs 5,000 cheaper than its nearest competitor.
The no frills version, comes with an Intel Celeron processor, a 7-inch LCD monitor and a memory of 512 MB. But at 2 GB, the flash drive is weak to put it mildly. This machine comes loaded only with the Linux version, however, the high end version comes with Vista Home. Also the no frill version comes without the CD or DVD player.
This machine will hit the stores on the January 26, while the company has not given any sales outlook, it's hoping that this destructive product will take its share in the laptop market well over the current 7%.
Indian Story
India's growth story remains intact for next 3-5 years, says Anil Singhvi of ICAN Investment, on NDTV Profit. The decoupling theory has been demolished and one can expect global growth to be slower in FY08 as oil prices may fall, he adds. He is bullish on the auto, IT and cement sector
Lessons from Jan 2008
The thing about life is that one makes mistakes. Many mistakes were made in the second half of 2007 and those sins have to be washed away by blood, such is the way of financial markets. Some participants will go down under and never be able to get back to the market again but most will survive. The pain will linger for many months, maybe years but lessons have to be learnt. Every such debacle has lessons for us and the sooner we forget them the more we suffer.
The first lesson is not to let stock price performance become the sole reason for buying, a mistake which was made in abundance in the last 3 months. What couldn't be explained by fundamentals was credited to liquidity. The present lost all relevance as people chose to focus on the distant future, perhaps simply because the present could never justify those ticker prices; only a hazy dream of the future could. Traders and investors had no time for fundamental analysts, in many cases they were labelled "cribbing fools". Chartists became the most celebrated tribe on the street as only they could see and predict the one way run to glory for many of the hot stocks even as fundamental watchers cringed at valuations....till the music stopped. Don't get me wrong, charts do work in trending markets but once stock prices veer away completely from fundamental value, people need to get careful. But they never are. Now that the blinkers are off, people should ask themselves why stocks like RNRL, Ispat, RPL, Essar oil and Nagarjuna fertilisers have lost 50-70% of their value. It is simply because their stock prices had snapped all connection with underlying business fundamentals, earnings and value. Their stock prices became the only reasons for buying them which works for a while but not forever.
The other big lesson, one which should have been driven in earlier in May 2006, is the danger of overextending oneself in the futures market. The lure of stock futures is easy to understand. Put in some margin, take a big exposure on a fast moving stock, make a killing when prices shoot up. Repeat exercise. Just that people forgot that prices may also come down and at a pace which noone can even imagine, maybe their friendly stockbrokers forgot to tell them that part of the story. The result : unbridled speculation that ran into lakhs of crores, excesses that we are paying for today. Even this fall will not cure investors of their love for futures speculation but if at least some amount of caution is injected it would have been a worthwhile learning. Futures are not toys for amateurs, they are time bombs in the hands of inexpert and inexperienced traders, it's only a matter of when the fuse runs out.
The other learning which I hope will play out in the future, as it has in the past, is that it pays to be brave in times of panic such as these. If I was allowed to invest myself , which I am not, I would have no hesitation in deploying serious money into the market today, knowing fully well that prices may fall more tomorrow. And I would be standing there tomorrow to buy more of the same, till my money ran out. India is going to be a terrific stock market story for many years to come, even an intermediate bearish patch cannot shake that conviction of mine. At best, one will have to wait a bit for the returns to follow. That's alright. You are happy to put money in a bank FD and then wait for one full year to collect that measly 8%, aren't you? Then why does the stock market need to give you 20% every month? In the last one year, I haven't seen so many good stocks trade at such mouth watering levels. Forget trading, avoid the duds which were fuelled up by operators, just go out and buy those bluechips. They will deliver, even if there is a global market meltdown for a while, and if you are a bit patient you will be rewarded. But do remember January 2008, as history will repeat itself again in the future. Just that our memories tend to be too short and our greed too much.
The first lesson is not to let stock price performance become the sole reason for buying, a mistake which was made in abundance in the last 3 months. What couldn't be explained by fundamentals was credited to liquidity. The present lost all relevance as people chose to focus on the distant future, perhaps simply because the present could never justify those ticker prices; only a hazy dream of the future could. Traders and investors had no time for fundamental analysts, in many cases they were labelled "cribbing fools". Chartists became the most celebrated tribe on the street as only they could see and predict the one way run to glory for many of the hot stocks even as fundamental watchers cringed at valuations....till the music stopped. Don't get me wrong, charts do work in trending markets but once stock prices veer away completely from fundamental value, people need to get careful. But they never are. Now that the blinkers are off, people should ask themselves why stocks like RNRL, Ispat, RPL, Essar oil and Nagarjuna fertilisers have lost 50-70% of their value. It is simply because their stock prices had snapped all connection with underlying business fundamentals, earnings and value. Their stock prices became the only reasons for buying them which works for a while but not forever.
The other big lesson, one which should have been driven in earlier in May 2006, is the danger of overextending oneself in the futures market. The lure of stock futures is easy to understand. Put in some margin, take a big exposure on a fast moving stock, make a killing when prices shoot up. Repeat exercise. Just that people forgot that prices may also come down and at a pace which noone can even imagine, maybe their friendly stockbrokers forgot to tell them that part of the story. The result : unbridled speculation that ran into lakhs of crores, excesses that we are paying for today. Even this fall will not cure investors of their love for futures speculation but if at least some amount of caution is injected it would have been a worthwhile learning. Futures are not toys for amateurs, they are time bombs in the hands of inexpert and inexperienced traders, it's only a matter of when the fuse runs out.
The other learning which I hope will play out in the future, as it has in the past, is that it pays to be brave in times of panic such as these. If I was allowed to invest myself , which I am not, I would have no hesitation in deploying serious money into the market today, knowing fully well that prices may fall more tomorrow. And I would be standing there tomorrow to buy more of the same, till my money ran out. India is going to be a terrific stock market story for many years to come, even an intermediate bearish patch cannot shake that conviction of mine. At best, one will have to wait a bit for the returns to follow. That's alright. You are happy to put money in a bank FD and then wait for one full year to collect that measly 8%, aren't you? Then why does the stock market need to give you 20% every month? In the last one year, I haven't seen so many good stocks trade at such mouth watering levels. Forget trading, avoid the duds which were fuelled up by operators, just go out and buy those bluechips. They will deliver, even if there is a global market meltdown for a while, and if you are a bit patient you will be rewarded. But do remember January 2008, as history will repeat itself again in the future. Just that our memories tend to be too short and our greed too much.
Subscribe to:
Posts (Atom)
