Chakry 09.04.2010

End of the day….

Market is in upswing. All major global players too are now becoming bullish in India. Though you labeled me as born bull at Sensex 8000 you could never see what I was able to see.

Correction is part of market. We should be used to accept this and use this correction for our advantage. Market will move 2 notches back and 3 notches forward till the time it does not come in new orbit. Thereafter you will see a vertical rally of 25% to see the end of the rally. Now Franklin Templeton too prefer Indian equities over Chinese peers because changes to market rules have given the South Asian nation "better corporate governance" and a "healthy" banking system as read in Bloomberg. I was advocating this ever since 2008.   

    

So far we were very aggressive in Metal and we have seen the results. Almost all the metal stocks including the KIC Metalics ( Cni research ) are on fire and the steam will not get over here. Keep tab on Tisco. Where the Bull Run will end in Tisco would be top of the commodity cycle. I fairly believe that Tisco is heading for Rs 1200 in next 12 months though there may be intermittent correction of around 20 % before testing these levels.

Now the new sunrise sector is AUTO ANCILLIARY. I had said in 2008 that it could be one of the biggest gained in next 2 years. Now Maruti going for expansion, Mahindra says cannot complete production due to component shortages etc is clear indication of auto ancillary going in top gear.

NRB Bearing, SS Duncan, SNL Bearing, Shivalik Bimetal and Jamna Auto are Cni picks and all these stocks are rolling. Shivalik is a specialized auto supplier which will get more OPM than others and also having association with LNM which itself makes investors to have this share in profile instead of keeping shares of fly by night companies. SS Duncan has land trigger. Jamna is sole supplier to Maruti. NRB is market leader in precision bearing where there is huge shortage. SNL is a subsidiary of NRB and is the youngest kid on the bloc.

Another industry which is becoming sun rise industry is chemicals. Bhageeradh and Vishnu both are out performing market.

Realty is my best bet for 2010 and small stocks like H B Estate, Network, Steel Strips Infra, Mukat Pipe, Dhampur Sugar Speciality will become super doper in next 2 years on value unlocking. Their fundamentals will not suggest right now as good bets but these stocks are the dark horses on assets theory.

To conquer fear is the beginning of wisdom