It's all in the past, new dawn begins
Beautiful dawn - lights up the shore for me.
There is nothing else in the world,
I'd rather wake up and see
What a ride we've had in 2006, the Sensex recorded a whopping 47% gain. However, it's all now in the past as we come towards the end of the year and a new dawn begins on Dalal Street. Investors must be whispering the above lines softly because they must be hoping that New Dawn begins with the bulls and continues through the year. However, the market trend will depend more on the earnings season, which will kick off next month. Then we have the budget in February. The outlook remains a bit cloudy against this backdrop. Indices are near their all-time highs and valuations are expensive. So, one should adopt a cautious approach at these levels. With so much action expected to take place on Dalal Street we might see markets moving in a range. Looking at the long-term picture, India's growth story is likely to continue backed by strong economic growth in the last four years. Valuations, remains the only hitch, so some correction on the way is not ruled out. The Sensex and the Nifty are set to breach greater milestones this year. And of course, knee jerk crashes is something we are getting used to.
Picks for 2007
Buy Tech Mahindra
for target of above Rs 2,000
Buy TCS
for target of above Rs 1,650
Buy L&T
for target above Rs 1,900
Buy India Cements
for target of above Rs 300
Buy Reliance Industries
for target of above Rs 1,500