IT'S BUYING TIME : 8 PICKS FOR YOU

IT'S BUYING TIME : 8 PICKS FOR YOU

The markets are passing through a highly volatile phase with drops and gains & uncertainity,the reasons being a combination of the following :

Commodities markets on LME crashing ,Global stock markets dipping,FII's withdrawing after circular on CBDT announcement ,New Taxation announcement affecting profits of trading houses .On top of it loose words from the FM stating that " All falls in the markets do not require a clarification" etc....Plus some Fund houses like CLSA and JP Morgan saying that Indian Markets are Overvalued and fair value exists at 9600 blah blah ....

I would say that the Long Term Fundamentals are intact and bullish.Selling by FII's and Financial Institutions causing panic selling among retail investors being the main cause of this market fall...I would say that Buying in small quantities is the best to get the best stocks at this time .We calll it Bottom Fishing ....Fishing when the water is low..

As usual ,my focus point being the Small Investor -I am recommending a Portfolio of 7 stocks for the short term .

1.ALLAHABAD BANK (Rs 81.3)

Allahabad Bank has posted an encouraging Q4FY06 result with a jump of 90% in
its net profit from Rs. 793 mn to Rs. 1.50bn. Such a significant performance has
been observed on the back of strong business growth with nearly 36% advances
growth. However, a drag on the performance is higher than expected provisioning,which is up from Rs. 1.21 bn to Rs. 1.70 bn during the quarter.

2.PETRONET LNG (Rs 49.4)

Petronet LNG Ltd (PLL) on Thursday reported a net profit of Rs 661.4 mn
in the fourth quarter ended March 31, 2006 against a profit of Rs 76.1 mn
reported during same period last year.

3.CRANES SOFTWARE INTERNATIONAL (105.5): Keep Stop loss of 99.5

Holding very strong even in the weakest market with minimum fluctuation & quick recovery.

4.TRIVENI ENGINEERING (Rs 90.95)

Splitting of Sugar and Engineering into separate entities would unlock value.Turbine Orders in hand currently at 510 Crore Rupees.

5.NTPC (118.5)- Can buy it from 90-100 levels if market falls again .


6.GUJARAT STATE PETRONET (Rs 36.2)

Holding very strong even in the weakest market with minimum fluctuation & quick recovery.Also fundamentally strong and having maximum lengths of Transporation lines for LNG Transportation

7.ASSAM COMPANY (26.1) –Can buy now at Rs 25 levels

Anil Ambani Group has taken a 105 stake in this company last week.

8.CIPLA

Investors with Surplus money can invest in India's Best and Cheapest Stock -RELIANCE INDUSTRIES at Rs.850 levels and small quantities (to take care of any unexpected market falls) and averaging at every fall.

You can probably make about Rs35000/- in a month's time ,if you buy Reliance (100 nos) at 850 levels now.