We posted the following on March 29th 2012 here in this forum@
As said earlier, Nifty below 5170 closing will remain weak where on the downside it could see level of upto 4960/4940 however inbetween there's some support at 5085 levels.
Strong only above 5170/5220 closing.
As said earlier, Nifty below 5170 closing will remain weak where on the downside it could see level of upto 4960/4940 however inbetween there's some support at 5085 levels.
Strong only above 5170/5220 closing.
Corporate results have been mix bag. I believe that one should focus on companies that have been reporting good numbers from last few quarters as their lies the key to the next set of multibaggers for the long impending bull market. For any selection the following two criteria should hold Good and the result should be a Unanimous "YES"
ReplyDelete1. Has the company got Low Debt? Is their current debt manageable by the returns that their business generate?
2. Most Important---Is the business free from Govt. Interference( by interference i mean policy confusion). Their are numerous cases in last two years to understand why i stress so much importance to this point. SKS, Manupurram, Infra cos, Airlines, IGL, Pet LNG....'Manish Sir' will surely add if i missed something here.
3. Is the dividend yield good?
Oil marketing Companies are bleeding and for god sake don't make them "your" next target. If they now have a 'free' hand then let them decide on the fuel prices.
Markets are ripe for a decent bounce now (sustainability of bounce is debatable). Reasons are- Crude cooling, the bad IIP figure out of the way (i think the number has been factored in by the markets already), RRR cut by 50 bps ( Republic bank of china). There has been no major selling by FII's .Yes they have stopped pumping in the dollars that they did in the early part of 2012 but no Major Selling by them till now. I guess they are also re-aligning their portfolio as to be free from Govt interferences. This is a bad time to be talking equities but i will end with two encouraging lines ( Golden rules)-
1. Equities as an asset class will always give you superior returns compared to any FD,gILT or company paper. Of course, one needs to be patient and wise in his choice.
2. Bulls markets always last Longer than bear periods. Just remember this when you pour your savings into Equities.
Cheers!!!
Piyush