Interestingly poised Market! Expecting some upmoves

The recent upmoves were quite welcome, considering that we had broken the closing lows of 8500 on the sensex. The good thing about this upmove was that the midcaps participated generously and went up quite substantially. . .In my last article I had written that it was a good time to buy stocks from a long term perspective. For E.g. It was indeed great to buy a Welspun Gujarat at Rs 45 (its a different matter I had the stock also at Rs 450!!! last January) but its difficult to fathom that we will get these stocks again at these levels!!! So once these stocks come into the kitty at these prices, they surely become long term assets. . .So in a weeks time Welspun has gone up by 40%, this is exactly the power of equities. . .

Trading with a positive bias should be the norm for the week ahead, also with the expiry coming in it would be interesting to note the market movements.

Time for some long term buying!!!

I havent been able to write much in the previous month, part of the reason for not writing was that things were not changing much (in terms of downturn) from what I had written in my previous post. We were heading for a downturn and broke the earlier lows set by us. . .and well gold was shining all along . . .We still are very much in the grips of a downturn but I think now there are pockets wherein opportunities for long term investing are showing up. . .most of the stock are available at 1/10th the prices of January!!! If we were buying them at that price, nothing should stop us at buying them at a fraction of a value. . .If things improve (and eventually they will) then these would become assets. . .really high paying assets. . .

Some cherry picking can be done based on certain parameters that should be applied in such conditions:

1) Solvency of the company

2) Dividend yields

3) Management track record

and offcourse the price that you are paying for it (PE ratios) amongst others. . .

They say it was the worst of times and it was the best of times. . .guess this axiom applies more than ever!