Mubai Stock Market Status August 2010
It has become common practice to see some correction in our bourses when the global markets rise. We rose yesterday and global markets rose today and we are silent. This is happening off late, may be to trap intra-day traders.
It is widely believed that crossing 5500 is hell of a job and accordingly lots of shorts are being built up. I believe otherwise. Market is slow starter and Nifty will rise slowly and steadily 2 notch ahead and 1 notch back style till 5600 before it goes in the top gear.
Meanwhile if your approach does not change you will remain victims of the operators. There more advisors than traders. Wire channels too have become specialised advisors and give advise for no cost even though there is no revenue stream from such advise. You can be very well be used which you need to understand.
The only way to become a self protector is the buy a stock when nobody is buying, hold with some pain and when buzz starts book the profit. At least one thing is sure that you may not lose money.
I had been recommending Tata steel from Rs 450 and cmp has become Rs 550 and yet the steam is not over. It will cross Rs 600 700 800 and will test new high. But entering at higher levels will always expose you to undesired risks. Some mistake happened from out SC team also like Bajaj Hindustand was picked up even though we were always negative on the sector. Mgt play could be responsible for such events. None the less in 500 calls in a year if you go wrong in 2 or 3 calls it hardly matters. Same thing you have seen in RDB Industries Ltd. Co is worth Rs 250 to 350 crs yet somebody played truant and traders lost blaming us. Dear, this stock was recommended ever at Rs 100 for one year. Again it was recommended at Rs 52 and the average price is Rs 76 and cmp is Rs 75 where is the loss?
Trading and investment both is hobby for many but they do not understand that it is a scientific industry where risk is high and reward too is high. If you do not intent to take risk you must only buy stocks like Bharti, Idea, RIL, SBI which comes in Street Call for that matters.
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