Monday, June 8, 2009

Indian Markets: Upgraded but still Synchronized

Indian stock markets rallied from lows of Sensex 8000 levels to 12000 levels followed by a thin volume jump of 2000 points on the back of positive verdict of Indian public on the Political front. And now that markets is gradually sustaining above Sensex 14000 levels, it can be termed as up gradation of position of India on the global map more so on the back of positive and stable outlook on the Political front.

But, that does not mean that Indian stock markets may have 'decoupled' from global markets. India still remains in sync with global momentum and trend. The benchmark indices of Indian markets still moves in sync with positive global momentum. Likewise, when the ongoing positive global momentum receives a jolt, it would be difficult for India to shrug-off the trend beyond a point.

However, we can say that there is, indeed, an up gradation on Indian fundamentals amongst the Emerging market clutch. And this we will see when global markets correct, that Indian indices will enjoy an up gradation to the extent of Sensex 2000-3000 points (even when there is correction) on the back of reform-oriented and disinvestment-led stable government on the Centre for next 5 years led by UPA.

Call Dated: June 04, 2009
Short-Term Trade: (Strictly for High Risk Traders)

Buy Educomp (CMP Rs.2950)
Buy Around Rs.2800-3000
Target: Rs.3330-3530-3700

Stop Loss (SL): Rs.2740-2585
This trade is recommended strictly for High risk Traders.
The second stop loss of Rs.2585 is for those traders who can bear deeper SL.

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Shalu said...

hi viral, i have a query on my portfolio holding.....i hold 200 shares of DLF at 397. now the cmp has reached my buying price....what is ur long term view on DLF? Will realty as a sector may perform as well as a PSU bank or infra sector in a 2-3 year holding period? Can you pls advice me if i should hold this stock or sell and buy something else?!

Viral Rajnikant Dholakia said...

Dear Shalu,

DLF will out-perform in the long-term. It is a 'Badshah' in the Real-estate space which is still a rising sector in an emerging country like India. The prospects of the sector in long-term is strong.

DLF continues to be the best pick in the sector and will perform in line with other sectors. In fact, may be, even out-perform other sectors over longer-duration.

Now, that you have recovered your cost after long time & that markets are over-heated in the short-term, you can sell 50 shares around current price & buy them (lower) back in next 2-4 months once the correction sets in.

The above is the strategy only if you wish to use you shares for trading passively from what you already hold. If you are a patient long-term investors, you can hold on tightly irrespective of any correction in future.

Shalu said...

Thanks Viral, your advice is much appreciated.