Nifty has managed to hold 4720 right now and critical support levels are in the 4663-4693-4720 zone for now. Banks and financials have regained some base after a massive short-covering rally and some easing of concerns over Euro-zone liquidity concerns. How far will this go ahead for supporting banks - only time should tell. LnT, BHEL have regained some lost ground and all auto stocks seem to be rebounding well courtesy expecations of higher sales for the festivity period.
IT is trying to regain some ground on the back of the rollar effect that is expected to boost the balance sheet. All this just indicates a temporary boost and will fail miserably to cheer the bourses. Short term upside momentum will be very very short-lived. Once all the major bad news gets factored and stocks get beaten down - we should see some fresh buying coming in from the mid-segment traders and end the year 2012 hopefully above the 5k mark. 16th Nov to 22nd Nov is the most bearish time period IMHO where will see a lot of panic on the bourses and extremely high VIX [39-30 levels or more - similar to the levels we saw during the post Lehman Brothers period]. We will not go below 3800 levels IMHO for the current fall and then start moving upwards.
Cash continues to be king and this is not the time to buy gold/silver as an investment. For now, I can say that one can start looking at Moser Baer, Navneet Publications, Clutch Auto, IFCI in a staggered format; 10% of capital can be deployed in times of current panic in the next 4 to 6 weeks with a target of 30% plus returns PA with a 3 year horizon.
Blue chips like Tata Motors, M&M, LnT etc need to wait for some more time till they get badgered further. Regardless of what happenes, IMHO, we are very much close to a bottom now and the 3800-4800 entire zone on Nifty presents good buying opportunitites directly into equities and Index units like Nifty Bees and BankBees [7800 - 8800 is the buy zone] and one may also consider Hang Seng Bees now [12k to 15k is the buy zone] and once can expect at least doubling the value of these Bees instruments within a 3 year time frame. No point fishing for a bottom - time is ripe to make some investments now.
Disclaimer / Disclosure: The counters mentioned here with levels are an estimate made by me and by no way represent a guarantee of returns. There could be further corrections as well and these suggestions are made with a 3 year time frame. An individual must consult a financial advisor before taking the plunge. I hold some of these stocks and have recommended these stocks to people in my private circle as well.
Profit or loss arising from any positions taken in the counters mentioned above is solely the individual's responsibility.
IT is trying to regain some ground on the back of the rollar effect that is expected to boost the balance sheet. All this just indicates a temporary boost and will fail miserably to cheer the bourses. Short term upside momentum will be very very short-lived. Once all the major bad news gets factored and stocks get beaten down - we should see some fresh buying coming in from the mid-segment traders and end the year 2012 hopefully above the 5k mark. 16th Nov to 22nd Nov is the most bearish time period IMHO where will see a lot of panic on the bourses and extremely high VIX [39-30 levels or more - similar to the levels we saw during the post Lehman Brothers period]. We will not go below 3800 levels IMHO for the current fall and then start moving upwards.
Cash continues to be king and this is not the time to buy gold/silver as an investment. For now, I can say that one can start looking at Moser Baer, Navneet Publications, Clutch Auto, IFCI in a staggered format; 10% of capital can be deployed in times of current panic in the next 4 to 6 weeks with a target of 30% plus returns PA with a 3 year horizon.
Blue chips like Tata Motors, M&M, LnT etc need to wait for some more time till they get badgered further. Regardless of what happenes, IMHO, we are very much close to a bottom now and the 3800-4800 entire zone on Nifty presents good buying opportunitites directly into equities and Index units like Nifty Bees and BankBees [7800 - 8800 is the buy zone] and one may also consider Hang Seng Bees now [12k to 15k is the buy zone] and once can expect at least doubling the value of these Bees instruments within a 3 year time frame. No point fishing for a bottom - time is ripe to make some investments now.
Disclaimer / Disclosure: The counters mentioned here with levels are an estimate made by me and by no way represent a guarantee of returns. There could be further corrections as well and these suggestions are made with a 3 year time frame. An individual must consult a financial advisor before taking the plunge. I hold some of these stocks and have recommended these stocks to people in my private circle as well.
Profit or loss arising from any positions taken in the counters mentioned above is solely the individual's responsibility.
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