Are you ready for profit booking?

Indian stock markets will see profit booking in most counters on account of weak global cues. Crude crossed $ 44 while rupee is continuing its appreciation. Markets are neglecting all these negative cues and investors are buying some stocks like Divis Labs, GMR Infra by forgetting valuations. Most of the new investors have not experienced the severity of market bubble in their equity life time. I am unable to understand their investment rationale when they are buying stocks at such a high valuations. RBI may hike interest rate at any time to keep inflation at 4%. Oil marketing firms may hike petrol and diesel prices if crude continues to appreciate. I changed my portfolio to long term stocks and low value stocks.

Global Cues: Negative. Except Dow Jones, most of the global markets are in negative zone.

Stocks of the day:

1. TCS – Sound stock for every portfolio. It surprised everyone with its stunning results and growth guidance. Satyam and TCS may gain around 15-20% within 1-2 months.
2. Reliance Industries – Gas find in Cauvery basin and upward momentum.

Sector of the day: IT Stocks.

Significant news:

1. Indian Entrepreneurs are most optimistic ones in the world.
2. Indian GDP growth will be at 9% while Inflation will be at 4% - Government advisory panel.
3. Everonn Systems fixed issue price at Rs 140.

Positive stock news:

1. TCS consolidated net profit rose by 36%.
2. IG Petro net profit rose by 88%.
3. Zee News made profit for the first time in this quarter. Profit of 6 crore against loss of 54 lakhs.
4. Petronet profit rose by 90%.
5. KS Oils got investments for its expansion plans.
6. TVS Motors started Indonesian operations by launching Neo.
7. Venus Remedies signed 10 year deal with a Chinese form to sell their Antibiotic.
8. Ashok Leyland formed JV with Siemens Automotive.
9. Tata Coffee will launch 100 retail outlets within 5 years.
10. L&T Consortium bagged orders worth Rs 1070 crore.
11. Reliance Communication is continuing its momentum by acquiring foreign firms.
12. JP Associated announced good results. Investors booked profits.
13. Idea launched “My Gang” card at attractive price.

Note: I will write about future stocks and low value stocks within 3-4 days. My stocks like Wire and Wireless, Fortis and Mastek at last got their due. Some will become multi-baggers if you are a long term investor.

Please share your views.