Re: Might Be Helpfull
NEWS LETTER FROM MUMBAI BULL
Hi friends:
Markets after reaching an all time high has been hovering around 7700 levels. The small ups and downs can be expected to continue for some more time. I see the SENSEX at around 8500 points in the medium term.
Although lot of investing houses have started to think that Indian markets are overvalued and they see some corrections, Q1 results or Monsoon or other economic factors fail to suggest anything of that sort.
But be cautious. There are of people who are sitting on good percentage of unrealized profits. They have purchased the stocks at far lower values that the prevailing prices and are riding the boom. They can sell the trigger any time and a small fall of 200 points may trigger a further fall in them.
So when you decide to hold on to a stock, make sure that they are still trading at low PE multiples. Switch from stocks that are trading in high PE multiples due to the Bull Run to stocks, which are growing well in terms of sales and profits and are available at low PE ratio.
Down try to find a stock that may move from 100 to 1000. Aim for a stock which may give an annual return of 30-40%. If you have a portfolio of 10 stocks which are sure to give you 30% return per annum, One of them may fail, 8 may perform as expected and 1 may give you a return like you never expected (May be from 100-1000).
If you aim for a stock which you think will move from 10 to 100 and buy 10 such stocks, the most likely effect is 8 stocks will disappear from the market (stop trading) and 1 may go to 30 and one may hover around Rs 10 itself.
I am always for look out for the stocks, which are sure to give 30-40% returns irrespective of market conditions. I am always a bargain hunter who buy stock when markets have fallen or in panic over various news. I never chase a stock like a dog. Please note that there are always good buys. Dont get carried away by rumors. Ask for reasoning when someone recommends a stock.
This has been a lengthy lecture. Let me recommend some stocks, which are blue chips in the making.
I have been recommending *** Bearing from long time. Although the stock has moved up from Rs 150 to Rs 275, currently available at Rs 240 it is still worth adding to your portfolio. May react a bit if markets correct a bit but a sure shot to move beyond Rs 350 mark over 1 year.
NIRMA at Rs 470 is worth looking at.
Maruti at Rs 475 is a good stock to get into.
Buy Aarti Industries at around Rs 140.
Archies Limited at 135 levels should give a good return on short term on take over rumors. But long term holding should also be beneficial. May see some correction if the rumor go against.
BASF at Rs 210 looks good.
E.MERCK (INDIA) LTD at Rs 428 looks great.
FOSECOIND at Rs 350 is a good buy.
GRASIM , RIL, HINDALCO, ITC, TISCO, ITC are good buy at current prices. Syndicate Bank, Ashok Leyland, SBI, TATA Motors, Maruti are value buys.
I am just ending this list. The list is too long and will put you in dilemma if I continue further.
All the best. Do not day trade. Just invest and keep booking profits.
ANAND KUMAR
