Saturday, May 17, 2014

Stock market advice

The markets have rallied more than what was expected of the market.

Blue chips have doubled.Some midcaps are up around 200%.

Now the question which remains to be answered is that what should one do to earn money in stock market,where should one invest money ????

My take is that sell out of the stocks in which you are having profits even if the profit is less than 10% or even if it is more than 100%. Just sell out now.

According to me this rally will not sustain for a long period as can be seen by sudden selling which came on the result day when nifty zoomed to 7500 points and it closed well below that level.

Few stocks which you all should be focusing on are:-

1) Reliance Power:- It has not moved much from its life time lows as compared to other stocks.

2) Nhpc:- It is still trading below its book value plus the main point to focus is that the dividend payout is approx 5% in a year which is also tax free and my target for this stock is 40 with one year holding time.

3) L&T finance:- This company is very well poised and it has also not moved up much.

So keep these 3 stocks in your focus and enter as per your convenience.

Disclaimer:- I reserve the right to be wrong.

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