Sensex

Thursday, April 22, 2010

[sharetrading] Metals and Minerals

 

Who dares to offer guidance to an able guide ?

This is my personal view based on current world demand and near zero cost dollars moving in and out of metals and metal stocks

Metals , iron ore and minerals are not current favourites (unlike PSU Banks)

Therefore there will be a cooling effect on all such non momentum stocks
Traders should stay away from this sector for the time being

The scenario I envisage is that many other selective stocks will move up , to be followed by profit boking and sector rotation

However for a hardcore investor , the best time for SLOW SIP BY SIP ACCUMULATION begins now and may extend upto one year

The entire scenario of metal and minerals demand growth is shifting from US & EU to India , South Korea , Turkey , China , Vietnam , Brazil , Russia

All core metal stocks ferrous and non ferrous cannot BUT DO WELL going one year forward

Since the population and scope for usage of the growing economies is much larger than the advanced economies , my conviction is that the future demand for metals and minerals will far outstrip supply

I believe Kumar Mangalam Birla and Ratan Tata are visionaries to buy Novelis and Corus

These age old core sector stocks are far less riskier than new age stock ideas which have increasingly shorter life spans

Coming to Sterlite , this should be accumulated closer to 200 dma or ema and dips thereof

However your 6 to 12 months play will be too short a duration for the above scenario to pan out

For 6 to 12 months one should buy midcaps which will blow out

Today I accumulated Astra Micro at 65.50 for a target of 85 in 3 or latest 6 months

Thanks and regards

SM

--- In sharetrading@yahoogroups.com, HS Ratti <ratti2@...> wrote:
>
> can anyone guide me on the future of metals especially Sterile @ 800(sitting
> above its 50 DMA and also 200 DMA) for gpoing long at about 770-810 for a
> pd of 6 - 12 months..
>
> I feel.. it shld be in bull mode.. but the world metals movement may affect
> it..
>
> HSR
>

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United we grow!!!
MARKETPLACE

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