Santa blessings...
Thursday, December 24, 2009
End of the day…
Before I write my column I wish all my readers a very Happy and Merry Christmas. Undoubtedly Santa has brought the cheers of new Index to market and this gift will remain memorable for ever.
2009 was a year of consolidation where people lacked conviction after the meltdown of 2008. Why traders and investors failed to make money and your dear Chakry kept on proving himself time and again against all big shots in this market is really one should know. In my opinion traders were always searching mistakes of market and reluctant to go long at any point in time. In other words "Trying to anticipate weakness in the market was the single biggest mistake traders have made this year."
As wrote in my yesterday's column except metal no frontline stocks performed but Nifty did though instead of morning session the reverse gear was set in the late session.
Rollover was very weak which means short sellers were expecting correction from 5180 which did not happen. Even till today rollover was very weak. These clearly suggest more upside is still left and my target of 5360 in this settlement is a distinct possibility. Though it will depend on call and put writing the analysis of which cannot be done at this point in time.
Please go through the report issued by Cni in July 2009 when Sensex was 13700 post budget where it had set target of 21000 by March 2009. The main reasons given that time were recovery in economy, rise in tax collection, disinvestment, and finally GDP of 8% or around. That time none of learned and white collared analysts were ready to subscribe our views and held that India cannot attain even 5.5% GDP growth.
When yesterday FM again reiterated that 8% growth is visible and in fact India can come back on 9% in 2 years we fell proud of analysts who had guts to say that this will happen that too in the open forum.
Again when we were discussing with few fund managers who have expressed that Nifty will go back to 4500 their assertion was Rate hike is imminent. Well, F M again came to our rescue by saying that stimulus withdrawal will be part of Budget 2010. In fact, yesterday rally was marked by this statement.
So far we have delivered a profit record in all 11 months of 2009 to our members though many traders felt suffocated due to their brain washing from few learned bears Shamaben and Dam Maro Dam.
Having said that market has finally broke that 5180 magic figure which was threatening all traders the same way 4730 did from June to Aug. With this now the decks are cleared for market till 5600 and hence at least now you need to come to market with and open mind.
Every year I had been giving some gifts to you on some occasions in the form of my best bets. This year I am giving you 3 scrips of A gr and 3 of B gr. A gr Century, Ispat and Essar Oil whereas in B gr Windsor, Suryachakra and SNL Bearing. The last one is the blinder. Yesterday SHERKHAN EQUITY FUND picked up 37 K shares. This co is a subsidiary of NRB Bearing and earns over Rs 8 or around for last 3 years. Due to major bearing plant failures in the world the bearing prices are set to rocket. We have already issued our report on NRB Bearing. SNL is part of that family.
In 2007 when Century was trading at Rs 1300 plus the big players who control this stock were talking of Rs 5000 plus. No change in fundamentals. With Sensex expected to touch 21000 why can't you expect to see Century at Rs 1000 at least. I am at least blessed with a new season which is really not part of the market conspiracy.
Blessed is the season which engages the whole world in a conspiracy of love
BigGains !!
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