10 POWER STOCK PICKS TO ACCUMULATE IN MARKET FALL

10 POWER STOCK PICS TO ACCUMULATE IN THE MARKET FALL

1. Apollo Tyres:

recommended buying Apollo Tyres with a price target of Rs 97, providing potential upside of 51%.

2. Godawari Power:

recommended buying Godawari Power with a price target of Rs 576, providing potential upside of 44%.

3. HCL Tech:

Its recommended buying HCL Tech with a price target of Rs 488, providing potential upside of 10%.

4. IRB Infrastructure Developers:

It recommends buying IRB Infrastructure Developers with a price target of Rs 301, providing potential upside of 34%.

5. Jagran Prakashan (JPL):

Its recommended buying Jagran Prakashan with a price target of Rs 165, providing potential upside of 22%.

6. M&M:

Its recommended buying M&M with a price target of Rs 872, providing potential upside of 15%.

7. NIIT Tech:

Its recommended buying NIIT Tech with a price target of Rs 278, providing potential upside of 46%.

8. Shree Cement:

Its recommended buying Shree Cement with a price target of Rs 2,580, providing potential upside of 24%.

9. Tata Steel:

Its recommended buying Tata Steel with a price target of Rs 759, providing potential upside of 18%.

10. Usha Martin:

Its recommended buying Usha Martin with a price target of Rs 120, providing potential upside of 72%.

ACCUMULATE THESE STOCKS IN REGULAR INTERVALS FOR SHORT TERM WHEN EVER MARKET FALLS ON BAD NEWS FROM TODAY...

BEST WISHES

Markets may slip N Nifty may down 5400 in 15-30 days

Although the Nifty has shown a smart pullback in the last few days, Prakash Diwan, Networth Stock Broking says it will probably see a retracement from the current levels, "It may go back to 5,400 in sometime, not immediately, but maybe in the next 15-30 days."

Realty, telecom and metals, he says, will probably weaken the Sensex and the Nifty more than any other sectors.

However, he is positive on the IT sector. “IT will become a defensive safer play as compared to others.”

Q: We have seen the market come back to where they were last Wednesday or Tuesday back to the straddling 6,000 mark. Do you think that there is enough steam left to cross this 6,040 to target 6,300 or do you think this should be profit taking time and valuations are already looking little dear?

A: I think the market is pretty laboured, the way it is crossing the 6,000 mark. So, it’s not going to be very easy task for it to go all the way to 6,300 definitely. But possibly if there is some sort of momentum on the back of positive flows, news flows, it could go all the way to 6,070. But there is a topping out which is very eminent there as well. So, while I believe you will probably see a retracement from these levels, maybe back to 5,400 in sometime, not immediately, but maybe in the next 15-30 days.

Q: If we do go back to 5,400, whatever the probabilities are for that, which stocks in the Nifty are looking exceedingly weak perhaps at the 6,000 level which might crack?

A: It’s typically a huge list of stocks which don’t look very strong. So, they could be susceptible to any kind of shorting or some sort of serious profit taking, particularly realty would given in very easily because the comeback has been fairly specious, it’s not very tenable at these levels.

You would also see telecom go through a bit of volatility and hence unfavourable move downward. Metals maybe, but not as severe as other two. So, I believe these three would probably weaken the Sensex and the Nifty more than any other sectors.

Q: What about banks, they spearheaded the rally in September and early October? They have taken a badgering which one never expect probably some of it was unexpected news, but is there a fundamental wobbliness and you would rather take profit when the market gives you a chance?

A: Yes certainly. We believe State Bank of India for e.g. could again react downwards if some profit taking happens. There should be logically some profit booking at these levels, even Axis Bank is looking pretty weak at this juncture. These are the banks which had sharp run-up and they also are finding it weak to continue growing in terms of credit because that’s not looking very great, especially with realty and a lot of other sectors under the scanner at this point in time. So, where is it that the banks are going to finally grow from? That’s where the midcap and the small banks might score much better from here as compared to the larger ones.

Q: What about ITC? It’s been an outperformer, it’s showing strength. Today it’s dipped on account of that news that we have got. Should one use this opportunity to buy perhaps it will get resolved soon because the government is also involved now?

A: I think it’s a bit of an overreaction, more out of sentimental reason than fundamental because for that Rs 18,000 crore tobacco business a four-day closure and that too a planned closure is not bad a news.

ITC is of course facing a bit of competition from new brand launches which are eating away into its market share, especially for its flagship brands like Gold Flake and all. But I am sure they will overcome that and it’s a well integrated diversified business where other revenue streams also could start chipping in. So, I think it’s a great story. FMCG in any case is a great sector to be in these times and ITC would be one of the best picks there.

Q: Where do you hide, if you are thinking that there is macro level, some kind of weakness in the stock market, stockwise is there relative outperformance?

A: You distinctly have IT which is looking up, especially the frontline largecap players. If you look at the job data, which has just come through last couple of days from the US, there is growing optimism that things possibly are not as bad and the recovery is possibly on its way. Given that the stand of the US government towards Indian IT companies in terms of taking on some of these projects and contracts would probably soften in coming January that could mean, and of course you also have the advantage of the rupee dollar favourable situation continuing for almost entire quarter this time. So, the frontline companies are pitching in for contracts, the pitch is very strong. They have given an indication that they should be getting some decent size contracts in January. So, IT will become a defensive safer play as compared to others

Courtesy :Moneycontrol

Buy and hold good stocks (businesses) for long term. A drop in price should be seen as a friend for accumulating stocks!!

At a time when the market is witnessing a correction and thereby causing nervousness to the investors, this article may open the eyes of many and may change their lives for good forever.

The major part of the article below has been picked up from web. The same clearly mentions as to how one should pick good businesses and follow their performance instead of keeping a daily tab on the stock price. Many investors still judge the company based on the fall and rise of the stock price of the company, while the greatest investors of all time did just the opposite. They followed the price only at the time of buying and selling the scrip.

The article is long, however I would suggest all serious Capital Market participants to read the entire article. The same may change your perception about Investing and make you a better investor.

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One of the most underrated investors around is Charlie Munger. OK, maybe he's not really underrated, but his partner at Berkshire Hathaway -- you know, the famous one, Warren Buffett -- casts a pretty long shadow. So Charlie's own brilliance is often overlooked.

Back to Charlie. He's written that to be truly successful at investing, you need to use many different mental models, from many different areas. He says he has about 80. (No wonder he's so good!)

One of the models Munger follows is that of looking for overall results while ignoring the noise, something helped by expanding the scale. Assuming the data is there, a longer scale means seeing the overall direction of movement without being distracted by the short-term, up-and-down bounce of the data's noise.

It's all about time scale

For instance, this graph.


For this stock price graph, you see that it went nowhere for a few months (that's the time scale) and then declined steadily toward the end. Time to bail, right? Especially after that 50% decline.


Then there's this graph.



you saw this pattern over several months, would you hold? It went down, it seemed to recover, and then it started falling again. Plus, it was bouncing all over the place while doing that. Maybe not.


However, if you expand the scale and take the long view, something Munger does, this is what you get.



The stock, McDonald's in this case, actually went up 140% from July 1, 2001, through July 1, 2008, the time shown (and, after having survived the 2008 crash, is up some 200%). Those two shorter time periods were just part of the noise among the broader, rising signal. About the only part that should have worried investors in McDonald's during that seven-year span was the 50% decline in late 2002. That was when analysts worried that the company's growth was over, which management promptly showed to be groundless.

Take too short a time frame, and what appears to be a signal is actually just noise. As the graph above shows, the signal is the upward movement, the noise is the daily and weekly -- even monthly -- fluctuation.


Beta, beta, who's got the beta?

The amount of fluctuation a stock has, relative to some index -- usually the Sensex and Nifty -- is called beta. And it's a number a lot of people pay very close attention to, because it is supposed to represent risk. After all, if the Sensex drops by 5% in a month and your stock drops by 10% (which is mostly the case with many Penny and Small cap stocks), which you might expect with a beta of 2.0, you're out more money that you would have been had you invested in the index. Except, many companies with high betas can actually be very good investments.


If you like the prospects of any Penny stock or small cap company after having done your research and decide to buy, expect the price to jump around. The betas show they have in the past, and they're likely to do so in the future. But don't worry about it. No less an investor than Peter Lynch commented that most companies' stock fluctuates by 50% in an average year. For the long-term investor, that shouldn't be a concern. What's more important than beta is the soundness of the business. Look for strong balance sheets, growing revenue and net income, and plenty of free cash flow. Beta is nothing more than noise.

In other words, don't pay too much attention to the close-in view, because it doesn't represent the true picture. Fortunes are made by backing up and investing over longer time frames.


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, even monthly fluctuations of the stock price. We search for the next Pantaloons, Educomp, Praj Industries, Biocon of the world, looking to hold them for at least three years.

Multibagger stories do not happen overnight. Companies like Pantaloons, Praj, etc did not grow and became multibaggers in a year or so. These stories have developed and grown over a period of 5-7 years.

People who have made money in the market have all been patient investors (The likes of Charlie Munger, Warrent Buffett, Peter Lynch, Rakesh Jhunjhunwala, Parag Parikh) and have followed the performance of the companies more than their stock price. Mr. Market is not always correct while determining the stock price of a company. Sometimes it can quote a high price while at times a lower price than the intrinsic value. You need to understand the same and take advantage.

So instead of grimacing about the stocks not moving, one should take an advantage and accumulate. Sooner or later the stocks will move up supported by the conducive market sentiments.

Best wishes