MIDCAPS : LET’S BUY NOW

MIDCAPS : LET’S BUY NOW

The volatility in the markets in the last 5-6 trading sessions would have caused lot of anxiety to most of us .These are times when we make wrong decisions. When markets fall drastically, all big analysts says that Further Fall is possible. This adds to another drastic fall .No big analysts predict the Movements in advance. Therefore investors should select their picks wisely ,based on Valuations ,52 Week High & Low , Industry Prospects ,Growth Prospects ,Earning etc.

My Tips on investing in such a market :
1. Don’t sell off totally :Reduce Exposure
Explanation :I had some stocks in 250 nos ,having good propsects.Due to uncertainty and to have liquidity (for investment at further falls),I reduced my exposure to 150 nos ,when the markets recovered a bit.
2. Don’t always keep on Averaging
Explanation :When some scrips keep going below & below ,it is not a good decision to keep on averaging.Buy other fundamentally sound & good valuation scrips.It is not necessary to make up your money in the same scrip.

I would say that Buying in small quantities is the best to get the best stocks at this time . 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 133)
Allahabad Bank is one of the scrips ,which is lowest on valuations & top on performance.It is also one scrip ,which is holding very strong in a bearish market.

2. ASAHI INDIA (Rs 126)
Holding very strong in a bearish market. Buying is recommended with a short term vision.

3. APOLLO TYRES (Rs.55)

Subsidiary Dunlop is doing well .Posted excellent results this quarter.Expansion plans plus overseas acquisitions.Highly profitable company.Stock is not affected by recent market sentiments

4. ASSAM COMPANY (Rs.47)

Has good stake in Exploration .Recently many gas fields found.Has tie-up with a Canadian partner in Exploration business.

5.GUJARAT STATE PETRONET (Rs 88)

I had recommended this before at 36.This is now fully valued at about Rs 100 /- but can hold this with a 12 month perspective .Also fundamentally strong and having maximum lengths of Transporation lines for LNG Transportation.Orders from Reliance for Gas Transporation.

8.RANE HOLDINGS (Rs 185)

Very few shares are traded per day ,but unlocking of value will happen soon by March 08 ,as cross holdings between Group companies will be unlocked .Good demand and also fundamentally an excellent play in the Automotive sector.

9.BINANI ZINC

All analysts say to avoid Metals.But in performance this stock is an exception.This went to 226 3 days back and yesterday reached 252. I think this is a holding company also for Binani Cement.This is an excellent stock at 226-230 levels .I think 255 is a resistance level for this stock.But in long term,this would be an excellent play.


All these can give good value in the next 3 months.

Apart from this ,I would recommend United Breweies@330 ,United Breweries Holdings@1065-1075 .These stocks are bound to appreciate strongly in the next 6-12 months time frame. GMR Infrastructure @210-217 levels is a good play ,considering the opening of Airports in Delhi & Bangalore by March 2008.

Short term (quick money) for High Risk Investor : Oswal Fertilizers / Geojit Securities /HB
Stock holdings


I have holdings & interest in all above stocks at the time of recommendation.Investment decisions should be made by the investor .All recommended stocks are for Delivery based investment only