Monday, 31 December 2012

Morning Bells (31 Dec 12)

Good Morning Friends,

Today is the last day of year 2012, it was a good year for Indian stock market as Nifty climbed from 4700 to 5900 approx 25%. It was a spectacular rally in 2012 on the hopes of reforms and then on announcement of reforms.

Now this year to witness ground reality of reforms. So pace will continue to next trigger in the year 2013. So year 2013 could be a new bull market and would focus on some good stocks.

Second problem with retail investors is that they don’t have the patience. Patience is the key word. If they follow that, probably 2013 can give good returns. They have not yet missed the bus.

This week will remain focused on US Fiscal Cliff - Investors fearing a stock market plunge - if the United States tumbles off the "fiscal cliff" next week - may want to relax.

But they should be scared if a few weeks later, Washington fails to reach a deal to increase the nation's debt ceiling because that raises the threat of a default, another credit downgrade and a panic in the financial markets.

Market strategists say that while falling off the cliff for any lengthy period - which would lead to automatic tax hikes and stiff cuts in government spending - would badly hurt both consumer and business confidence, it would take some time for the US economy to slide into recession. In the meantime, there would be plenty of chances for lawmakers to make amends by reversing some of the effects. (MoneyControl.com)

If it is resolved then we will have an extremely good run from there and January should be extremely good. If not then we will have a small cut of possibly 100-150 points on Nifty.

----------- Year 2013 -----------

Metals, OMCs will remain in focus in first quarter of new year.

Cutting short to MBells to focus on growth i.e. to focus on individual stocks to make some profitable calls.

From New Year we are going to update P/L for both Billionaire Club & Blog (against Investment of 1L)



MARKET OUTLOOK
Levels to be watched closely 5835 & 5785, both has good support while resistance seems 5950-5980

The INDIA VIX on NSE was down 0.11% and ended at 13.63 against 13.74 and FNO PCR is 1.07.

The rupee ended at 54.74.

S&P 500 (US) ended at 1402.43 down 15.67.

NIFTY OUTLOOK
Nifty is in range of 5785-5835-5990-6040.

Resistance comes to 5922 - 5937 – 5959 and Supports comes to 5886 – 5864 – 5850 - 5785.

Opening seems flat and under pressure, then market go for volatility ahead of US fiscal cliff worry. Investors may prefer to sit on cash. 

STOCK OUTLOOK -
(Stock outlook needs to watch stock movement carefully and then one can bet after having a look, I tried to put related info which will help you in taking positions.)

Greaves Cotton –
Current Level - 79 and can perform better in the year 2013, for patience holders and people who are looking for steady growth can keep eye on stock.




============ OPEN CALLS ============
# Please remember when I make special remark with any position then one should need to take care of that else you can make loss instead of profit.
# Be with strict SL and don’t hesitate to book profit if Nifty doesn’t shows strength.

Dishman - @118 for TG 130+ SL 107

DB Corp – @219 TG 240+ SL 201 (1-4 Week)

============ INVESTMENT BASKET ============
(Stock in this section is with view of 3 months to 1 year)

Mahindra Holiday – @334 TG 375+

Satyam Computer – @103 TG 130+

============ HOT SHOT ============
Keep eye on following stocks, if Nifty shows strength then these stock can give you reasonable return in very short term –

Buy Lakshmivilas Bank around 106-107 for TG 125+ (positional)

Today’s MG Mantra
Just chill and enjoy the eve, and lets hope 2013 will rock. Happy New year Eve.

Have a Profitable day – MG

Disclaimer –
1. I have shared my view as per my limited knowledge; please use your own skills to make a wise decision before execution of trade or consult your financial advisor.
2. Those that don’t have patience and are not willing to book loss also in cases don’t enter this market.

7 comments:

  1. Hello sir ,
    Exited TataMot .
    Going to take risk by making long in DLF & Relinf for tomm.

    Sir your DLF call was rocking . DLF close to your Tgt.

    And ,

    Happy New year to all !!

    Thank you.

    ReplyDelete
  2. Sir...i bought 31jan13 ,, 5900PE @ 72,,,Any views on it?

    ReplyDelete
    Replies
    1. Only US fiscal cliff disappointment can benefit you else mkt is in uptrend. Lets see. Keep tight SL.

      Delete
  3. For short to mid term (max qty 2K) -
    Suven Life Sciences (CMP 30.90) has secured 3 product patents for NCEs (New Chemical Entities) in Eurasia and Canada, reports CNBC-TV18.

    ReplyDelete
  4. Happy New Year to all blog members & Visitors. 2013 will bring prosperity for all of us. Cheers!!

    ReplyDelete
  5. MG sir,
    in aurobindo pharma board people are talking that this company is getting approval in
    Oxacillin For Injection (Total of 2 ANDAs) for this molecule is about to get final approval in 2 - 3 days space from Unit 12. Further there is Rizatriptan Tabs final approval coming up latest by 31st Dec, 2012 or 2nd Jan, 2013 from Unit - 3.
    and people are telling that because of this the stock is going to rise upto 230+. IS IT TRUE?
    YOUR VIEW PLEASE

    ReplyDelete