FEW STOCK IDEAS

The escewed market seems to be settled now.

Oil is more or less steady, gold is trying to find its groove. Probably stock market is settled and have it discovered its real worth?

But inflation is still high and rising , high interest rates should slow down loan activity and thereby growth. Monsoon activity is good, though political heat is rising. (What Mamata B is upto? Is she a real politician? Politicians should have more tact and statesmanship.)

Whenever it seems that market is going up there will be something which will pull it down. This is a out and out Bear market, though it should be a Bull market by all arguments. But market does not reacts on arguments, than on sentiments.

Can we hide from the realities for long and simply shy away from it? It will be foolhardy if we donot reap some benefits by way of changing outlook to a long term view. Some stocks I have noted below which may merit long term outlook, lets see if you agree with me.

Yes Bank

Opto Circuit

Sesa Goa

State Bank of India

BHEL

IDFC
Hope to see you in near future.

DILEMMA FOR SMALL INVESTORS:

It seems that we lack confidence to see our market above 20,000 mark of Sensex. If we go anywhere near the mark, we simply falter and whimper back to the so called comfort level of some 18,000. Are we still lacking in the conviction of a strong matured Indian Stock Market, which is not dictated by Hangseng, FTSE or Dow as fast as it is doing right now. I agree that no market can be insulated against the development in overall world scenario, if we consider the superimposition of economies.
But if any market is to climb higher, the Indian stock market is the most obvious choice. (Link to earlier post: here, here) Probably even the congenial Bears will tell; right now we are in a very good phase of Bull Run as almost all factors are favouring it. (Link: here)

The present lowering of market has presented us with a good chance to pick up some stocks which were in our radar for some time, at attractive price. The momentum boys RNRL, RPL, Nagarjuna Fertiliser, Bongaigaon Refinery and a host of other stocks have came down to a comfortable level to pick up. Some bigger boys L&T, Reliance, REL, Punj Lloyd, RCOM, State Bank etc. are now in pick-able price.
No wonder market pundits welcome correction. Should we wait for this correction to be over or just pick them up like that? It is a million dollar question. If we cannot effort to spend time in front of a computer to pick up stocks at theoretically correct time: it is simply not possible. For somebody of my type, who has engaged in other important jobs and cannot effort to spend time in front of a computer, I think picking up stock at a price at my comfortable level is the best bet.

I am sure; anyway we are going to have our market at a higher level in near future.

Now a small stock-poem

My stock: I do not sell it

If my stock remains at level, I do not sell it,
I wait for my stock to react.

If my stock goes down, I do not sell it,
I should not book loss, I can wait for some more time.

If my stock goes up, I do not sell it,
My stock will go up still higher.

I have my disciplines, I keep that in my mind
But never to practice.

SMALL WONDER

It was a market yo-yo for last few days. We, small investors are not only baffled but also puzzled what will be market tomorrow or days to come.

Some stocks are standing apart from the pack despite the ongoing on slaughter of the market.

Two stocks are coming to my mind where probably investors are betting in the present rainy days. one is State Bank of India and the other is Crompton and Greaves. Both the stocks are showing their robustness and going up in slow and steady pace.

One can see the movement and the pattern for last few days. Also it can be noted that for every sharp increase of price is supported by volume too.

The growth of SBI is phenomenal considering it to be a large cap stock, good result and news is prompting investors to get interested in it. SBI to me a long term story. It was heartening to see the investors faith in it and its movement in today's forgettable market.

Still I maintain that in any slide of market, the market reign supreme. It does distinguish between good stock and bad stocks in that condition. Small investors should invest in small quantum of their money.


YO YO movement in most cases (if you consider market history) result in long term lowering of market index, so it may not be healthy to enter market with a very long term perspective.