Multiply Opportunities
Friday, January 22, 2010
End of the day…
One of the reasons for market collapse was Obama statement to curb proprietary trades of Hedge Funds. G S had some exposure they were prominent sellers in the market. But for this reason is a temporary reason which is giving an excellent opportunity of buying at lower levels.
If you remember we were expecting this kind of one correction in last settlement which did not happen. Bulls took market past 5200 in this settlement due to which enough long positions were created. Bears too were hesitant to go short in a big way. Till yesterday most of long unwinding was seen and real shorting is seen today. Margin call is also affecting sentiments.
This is one part of the story. But the fact remains more naked is that rollover has not happened and only 4 days are left. Especially the falling market is good for long rollovers but what about short rollovers. If short rollovers are not possible then for sure shot sellers will cut their short as they are in profit and for that Sensex has to rebound come what it may.
Use this opportunity to buy as much as you can in delivery and restrict your long positions to safe and defensive stocks and avoid momentum stocks for the time being even though momentum stocks can give more trading spreads.
So far the entire corporate sector have announced good results which has resulted in Sensex EPS re rating to 1125 in F Y 10-11 and hence the Sensex target comes to 26000 and therefore this kind of correction is the golden opportunity to invest. So far we have never decided to go overboard. We think this opportunity can give some leeway to increase our exposure. If market breaks 4800 then we will exit all our long for long term basis but till that time we need to take chances and this is the best opportunity.
Buy Bharati, Idea, Ispat, Essar Oil, IDBI, IDFC, RIL, India Cement, ACC, Century and Bombay Dyeing, DLF , HDIL, Shobha Developers for delivery. DO NOT PANIC. THis is not new for us. We have gone through this phase time and again and has pulled you from the crisis time.
Opportunities multiply as they are seized..
BigGains !!
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