Chamatkar - Chakry - Rollover in process....

Microsoft picked 10% stake in TCS China which was followed by Tata Investment stake sell. In short RNT is for stake sell in TCS en route India, China, US or Mauritius on order to meet the Tisco costs. End of the day Tisco debt component will become manageable and analysts will be compelled to re-rate Tisco. I personally believe that Tisco has potential to cross Rs 800 in next 6 months. Sterlite, Hindalco and Tata Motors along with MTNL will remain our best picks.

Market corrected a bit because market was expecting big B kind action from RNT in Tisco board meeting which was a bit disappointment and speculators unwinding RIL positions once it failed to cross Rs 1290 decisively second time in 2 days. Well, we remain bullish not much worried about rollover though OI has crossed all time high at Rs 55000 crs. It includes Dec figures of Rs 9000 crs and options of Rs 19000 crs which was hitherto never crossed Rs 15000 crs. In May 06 it was Rs 15000 crs. The gross stock future is just Rs 25900 crs which is well below the May 06 figure and therefore I do not think so market is overbought though figures suggest artificially so. Manipulation of KEY nos is the history geography and science of Indian stock markets whether it is in term of nos or disclosure requirements. E g Exchanges requires small and retail investors to disclose all traders above .5% whereas FII buys bindhast without any disclosers because the penalty is just Rs 5000 for the same which are they are ready to pay on each trade and every day. Double standard is dangerous as well as against the interest of retail investors. Operators always manipulate various loopholes in law and take retail investors for ride such as the cash settlement is the derivative segment instead physical settlement which still proves that we will require another 20 odd years to match the global standards in reality though on paper our speed of globalization is largest. D mat scams, banking scams are happening here where penalty of Rs 116 crs is levied by the market regulators and going by past experiences the quantum of revenue loss could be at least 100 times bigger than the penalty figure. We have no option to carry on like this.

B gr stocks were smart movers today especially operators driven where the luring effect is quite large. At Chamatkar we have adopted the approach of bottom up stocks so that retail investors should not get stuck. We will continue to avoid all market friendly daily rising stocks which will correct over 50 to 100 pc once market loses its steam. In fact, few of old recommendation such as Uttam Sugar, Kothari Sugar etc have collapsed vertically though fundamentals do not suggest so. This is going to happen the end of every Bull Run and will not be an exception even this time. Therefore always try to exit as and when suggested by MB team.

Thanks Vinit