DEEPER CORRECTION AHEAD

Christopher Wood, Equity Strategist, CLSA, says the chances of a deeper correction in global equities are rising. "There is some initial indication of a technical breakdown in the US. Our best case scenario is 1,200 on the S&P 500 by year-end."

He feels an easy monetary policy in Asia can create asset bubbles. "The worst case correction in Asia is at one-third of highs." Wood advises investors to use significant corrections in Asia to buy stocks. “We have reduced our weight on India, and increased our weight on China."

According to him, India is most likely to see the first rate hike in Asia. But was quick to add that the Reserve Bank won't be aggressive in monetary tightening.

If we go by his opinion, worst case correction could be one-third of highs in Asia. In India, I do not believe it could be one third but considerable correction is quiet possible. Do not buy stocks for long term investment for some more time.

WHERE WILL MARKET GO FROM NOW?

Nifty will go upto 4950-5100 range in coming days and again it will go down and it may likely test 4250-4350. It is not the right time for the long term inverstors to enter into the market as the Nifty P/E is at 22. The fair value of Nifty is between 17-19.

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QUERTERLY RESULT ANALYSIS

I will publish querterly result analysis of Indian Companies by tomorrow. I will give some investment opportunities to the readers.

Querterly Results

Querterly Results

Good & Exceptional Results from:

BEL results are exceptional. 70% increase in sales and 90% increase in net profit. BEL is now trading at a P/E of 12 and company is reporting excellent numbers for last 3 years. 100-300% growth is now common for this company.

Torrent Power announced outstanding results.

Hindustan Dorr Oliver announced outstanding results.

IRB Infra announced bumper results.

McNally bharat reported 100% jump in sales and net profit in June quarter.


Poor & Worst Results from:

Gujarat NRE Coke, Reliance Capital, Tulip Telecom will announce results on Saturday which is struggling after IT raids.

Today, Suzlon and Unitech will announce their results.


Market will remain closed on Monday on account of Guru Nanak Jayanti.

Market Updates

Indian Market is in corrective mode now. Investment opportunities will come in next week. Market will go down in near term future. But we need to utilize it and we will benefit from the correction when Nifty will bounce back to 5500 in next few months.

Advice to Investors:
Don't be panic during the correction. It is a healtheir one to the market. So, we need to be optmistic during correction and invest our money during that time. Indian growth story is very good for the long term. We will grow our money in many times withing 2-5 years. So, don't worry about the short term correction.

SHORT TERM PICKS

In this article I will post the investment opportunities for short term. Normally, I have strong belief in long term investment. Many readers mailed me to post articles relating short term investment. I invest my money only for long term. But some stocks give good return in short span of time. I will try to give atleast 4-5 stock picks for every week. Readers should strictly follow the prescribed stop loss. This week recommendations are:

3i Infotech
CMP: 87.65
BUY AT OR ABOVE: 86
STOP-LOSS: 83
TARGET 1: 92
TARGET 2: 101

KS OILS
CMP: 55.70
BUY AT OR ABOVE: 53
STOP-LOSS: 51
TARGET 1: 61
TARGET 2: 68

FSL
CMP: 35.2
BUY AT OR ABOVE: 34
STOP-LOSS: 32
TARGET 1: 38
TARGET 2: 42

Unitech
CMP: 90.55
BUY AT OR ABOVE: 92
STOP-LOSS: 86
TARGET 1: 98
TARGET 2: 110

Wish you happy investing....

By Mr. Bullish for live-rich-in-life…

SYSTEMATIC INVESTMENT PLAN

STOCKS FOR SIP:

The companies that have been considered for selection are the ones with a market capitalisation of at least Rs 250 crore. Among them, companies with year-on-year (y-o-y) net sales and net profit growth of more than 10 per cent for the last three years and the last two quarters were retained. From this list, only companies that were able to maintain or increase their operating profit margin (OPM) and operating cash flow in the last three years were kept. The remaining stocks were examined individually based on qualitative and quantitative measures.

1. Titan Industries
Titan watches have built a strong brand and its diverse product range caters to masses as well as the premium segment, which is its success formula.

2. Bharti Airtel
Bharti Airtel is riding high on the overall growth of the telecommunication sector in India.

3. Bank of India (BOI)
BOI is perhaps the fastest growing public sector bank in India.

4. Emami
Emami has created a niche in the market by bringing products for its consumers that combine modern production techniques and ayurvedic principles. Emami is reaching deep inside rural India, which will lead to volume growth. Modern lifestyle has increased the risk of chronic ailments and consumers will demand natural products backed by research.

5. Indraprastha Gas (IGL)
The government's thrust on environment is putting more compressed natural gas (CNG) buses on road and rising fuel prices are prompting people to fit CNG kits to their cars. This is boosting IGL's CNG distribution business.

6. KS Oils
It leads the edible oil market in the north and north-eastern part of India through brands in mustard oil, refined oil and vanaspati. Its share in the Indian mustard oil market is 7 per cent. The company has also entered north and central India with an aggressive branding effort and greater retail push. Their backward integration will help improve the margins over sales.

7. Mphasis
MphasiS derives its revenues from application services, infrastructure technology outsourcing (ITO) and business process outsourcing that span industry verticals, such as banking and financial services, healthcare, transport and manufacturing.

8. HDFC Bank
HDFC Bank has seen a y-o-y net profit growth of over 30 per cent for the last 34 quarters and has maintained a high OPM of around 60 per cent during the same period.

Also, funds have dried up in the global markets—this will increase demand for credit from domestic banks. This means stable business in the future.

- BY RICHINLIFE...

Buying Stocks For 2009 - Top Stocks To Buy Now | Best Stocks To Buy | How To Buy Stocks | Stock Market Advice | Top Stocks | Stock Tips

Buying Stocks For 2009 - Top Stocks To Buy Now Best Stocks To Buy How To Buy Stocks Stock Market Advice Top Stocks Stock Tips

IPO

NHPC

SOME IMPORTANT DETAILS ABOUT NHPC:

Shares Allotment - August 24-26

Share Listing – September 1-2

Allotment Price – 36 Rs

Expected Listing Price – 36 Rs to 45 Rs

1 Lot – 175 shares

NHPC have the potential to give yield of 400 to 500% return to your investment in next 4 to 5 years. For short term investor, they can sell their allotted shares during listing day for short term gain. They buy this share in lower price later. For long term investor, they can have this stock in their portfolio for next 5 years without any fear.

INVESTMENT IDEAS

MULT BAGGERS

I spotted good opportunities in Indian stock market which I have found. Some shares will give good returns in future. I want to share it with the readers. The beginners in investment can invest in the following stocks to get good returns. The experienced investors also will enjoy the benefit of the following recommendations.

The Following Stocks will become multi bagger in next 2-3 years. That means, they will give you atleast 300-400% returns for your investments.

1. IFCI
2. MIC ELECTRONICS
3. MOSER BAER
4. FSL
5. 3I INFOTECH
6. ROLTA

I will meet you as millionaire in 3 years. Wish You Happy investing....

STOCK INVESTMENT

Which is best… Large Cap or Mid Cap Stocks…?

The success in investment lies in which stock we are investing. Investing in large cap stocks preserves one’s investment. It will give 20-30% return per year in average. It is a good return compare with any other investment avenues like bank fixed deposits, PPF and post office saving schemes. But if one really wants to become rich in their life through investment, then they need to take some risk. Risk is highly associated with rewards. Investment in Mid cap or good Small cap companies will give good yield in future. We need to choose carefully the mid cap or small cap. Because we can’t assure that particular stocks will grow in future. Still, those who have small or mid cap stocks in their portfolios will have good returns over the period of time. These investments will yield 400-2000% returns in 2-3 years.
So, one should invest at least 60-70% of their money in good small and mid caps stocks to become rich in life.

LIVE RICH IN LIFE

If you born poor, it is not your problem. But if you die as poor, it is your problem.

To live successful life, we need good health, good education, good wealth, good family, and good career.

Many have good health but don’t have good wealth;
Many have good wealth but don’t have good health;
Many have good health and wealth but don’t have good family;
Many have good family but don’t have good wealth;
Many don’t have all of the above.

Only few got the prosperity from the god to have mixture of good health, wealth, good family, and good career.

Why all in the world did not get everything? Is it god’s problem? Or, is it people’s problem?

We are not going to debate whose problem is this? We can easily change our current position by changing our attitude and thinking. I will post in my articles that how one can attain good wealth and good health in their life to live successful life.

We will see articles in future about YOGA, STOCK MARKET, SPORTS, CAREER in this blog.