Courage...
Tuesday, December 29, 2009
End of the day….
Cement and steel seen very good rollovers showing the interest of the operators. The only matter is that there is conflict of view in cement as most of analysts had given neutral call on the ground that more capacities will come in 2010 which I do not agree. I have met few industry captains and they have said that capacities will not come till Dec 2011 and by that time even demand will rise further. Those who had entered Tata Motors at 130 when street was talking of single digit story have now entered cement with conviction. As usual market will tell u to buy cement at 50% higher levels from now. Remember this.
Ispat fired all the way today after I wrote the fundamentals in my column on last wed. It is a great story and I believe that Ispat will touch 3 digit marks in 2010 itself which means it is multi bagger. Major story unfolding will happen only when it reaches around Rs 50 to 80 marks and hence there is no point in discussing now. You are trust this blinder where there is nothing to lose and everything to gain.
Apart from Ispat I fancy Century and Essar Oil. Though most of the traders are tired in Essar Oil as it is one of the stocks which do not allow traders make money by trading in this stock. Yet I have enough love for this stock. I had first picked Essar Oil when it was Rs 60 from there it went like a rocket till Rs 180 only on valuations. Now the story is fully matured which can be seen from reports now being issued by FII broking houses. There is simple logic for Essar recommendation.
In India close door meeting and presentations happen where mgt and operators set to game in a particular stock with target rates and events on which the value unlocking happens. In other words we call operation. No stock can move without a jockey. On merits Essar is worth Rs 1000 per share and these valuations we will some day in next 2 years. Essar is one such controlled stock where every thing will move according to the operator and no FII can show their muscle in this counter.
To my understanding now the game is set in Essar OIL which has consolidated for over last 8 months between Rs 180 and 120 and now it is heading for a big break out. It will first touch Rs 191 the target given by one of FII house which has recently issue report and thereafter sky is the limit.
Its acquisition plans are completed and it is third largest oil co in India. Govt also planning to give subsidy for private oil companies which is a big plus for essar oil.
Essar Oil stock is also known for giving major surprises in nos. Essar Oil the cheapest stock in oil sector. Please remember I had told you to buy Hindustan Oil at 35 and asked you to sell at 400 when the whole world was giving buy call. Now Essar Oil will overtake Hindustan Oil.
Coming back to market, though Nifty closed at 5195 there are 2 more days left and I do not think Bulls will leave this golden opportunity to make closing of 2009 a memorable BULL YEAR for them. I believe that closing will be some where close to 5360. Stock to open with gap tomorrow are India Cement and Ispat. Essar will be surprise move any time any day with target of 160.
Profits shrinks or expands in proportion to one's courage
BigGains !!
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