Building Up A Portfolio At A 7000 Level

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#1
Building Up A Portfolio At 7000 Level

Hi All,

At a level where the Sensex and Nifty Trades at an all time high, you would be wondering what I should do at this level?
Is this the end or even at current levels would it be a good buy or what should be my target?

A very plain answer to this would be it is still safe to buy. Now why do I say this?

Around a year back at the same time the Sensex traded at a level of 3000. Now it trades at a level of 7000.
However closely monitoring the PEs of the stocks as well as the sensex, would show that although the sensex and the various stocks have increased, the PE has been considerably low. At the level of 3000, the PE was aroung 16 level and now also the sensex PE is 15.3.
This clearly shows that the Sensex has not increased blindly and neither is it overvalued now. The sensex has increased with a good increment in Earnings and a high EPS has kept down the PE ratio.

Okay now, lets see what are some of the factors that can slow down the Economic Growth:
1> Monsoon Conditions
2> Oil Prices(I believe currently around 59$ barrel-plz check the exact figures)
3> Results and future prospects that the frontline counters show
4> Political Issues(which should not play a grand role)

Now what should I buy, will every stock increase?

Yes if the sensex increases tremendously, then I would say 80% of the counters will increase. It is important at this level that you "Choose the best and Ignore the Rest".
1> Entry should be made in a counter in 3 sets.
2> Do not put all your eggs in one basket
3> Do not overestimate? Read, hear analyse youself before you make a decision
4> Enter into stocks that are fundamentaly strong, or tend to be fundamentaly strong. (I am not saying do not buy penny stocks etc)
5> Do not be driven by a single day's chart, check past records and performace over the last few quarters and last few weeks.

Please remember the above and you should be able to do well off.

Any suggestions are always welcome.
 
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#2
Just for a consolidated result of our portfolio as suggested by me in the thread "Some Indian Mid Cap Stocks To Consider"

Rolta India(Suggested at 93) (Target 135 - Achieved and cleared)
Harrison Malayalam(Suggested at 92) (Target 115 Achieved and cleared)
VSNL(Suggested at 226) (Target 270,320,340 Achieved and cleared)
Elder Pharma(Suggested at 187) (Target 240 Achieved and cleared)

Bharat Seats(Suggested at 97) (Target not Set)
TVS Motor(Suggested at 70) (Target 105-110 Pending)
Hindustan Zinc(Suggested at 147) (Target not set)
Mercator Lines(Suggested at 82) (Target 115-125 Pending)
Sun Beam Infotech(Suggested at 6.6,5.7) (Target 20+,6.7+ Pending,Achieved)
Consilidated Finvest(Suggested at 50.7) (Target 70+ Pending)
Sakti Sugar(Suggested at 83) (Target 100-110 Pending(depends on monsoon))
MTNL(Suggested at 130) (Target 145 in very short term, 170 for mid term)
Hazoor Media(suggested at 11.2) (Target not set)
Deccan Chronicle(Suggested at 229,accumulate on dips) (Target 270)
 
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#4
hi suprateek,
as a beginner i have heard a lot about "midcaps".. what is it?
how do you define short term, medium term, and long term?
pls clarify my doubts.........
waiting and eager 2 learn..........................
 
#5
Re: Building Up A Portfolio At 7000 Level

supratik said:
Hi All,

At a level where the Sensex and Nifty Trades at an all time high, you would be wondering what I should do at this level?
Is this the end or even at current levels would it be a good buy or what should be my target?

A very plain answer to this would be it is still safe to buy. Now why do I say this?

Around a year back at the same time the Sensex traded at a level of 3000. Now it trades at a level of 7000.
However closely monitoring the PEs of the stocks as well as the sensex, would show that although the sensex and the various stocks have increased, the PE has been considerably low. At the level of 3000, the PE was aroung 16 level and now also the sensex PE is 15.3.
This clearly shows that the Sensex has not increased blindly and neither is it overvalued now. The sensex has increased with a good increment in Earnings and a high EPS has kept down the PE ratio.

Okay now, lets see what are some of the factors that can slow down the Economic Growth:
1> Monsoon Conditions
2> Oil Prices(I believe currently around 59$ barrel-plz check the exact figures)
3> Results and future prospects that the frontline counters show
4> Political Issues(which should not play a grand role)

Now what should I buy, will every stock increase?

Yes if the sensex increases tremendously, then I would say 80% of the counters will increase. It is important at this level that you "Choose the best and Ignore the Rest".
1> Entry should be made in a counter in 3 sets.
2> Do not put all your eggs in one basket
3> Do not overestimate? Read, hear analyse youself before you make a decision
4> Enter into stocks that are fundamentaly strong, or tend to be fundamentaly strong. (I am not saying do not buy penny stocks etc)
5> Do not be driven by a single day's chart, check past records and performace over the last few quarters and last few weeks.

Please remember the above and you should be able to do well off.

Any suggestions are always welcome.
Thanx,Supratik :)
 
#6
Re: Building Up A Portfolio At 7000 Level

supratik said:
Hi All,

At a level where the Sensex and Nifty Trades at an all time high, you would be wondering what I should do at this level?
Is this the end or even at current levels would it be a good buy or what should be my target?

A very plain answer to this would be it is still safe to buy. Now why do I say this?

Around a year back at the same time the Sensex traded at a level of 3000. Now it trades at a level of 7000.
However closely monitoring the PEs of the stocks as well as the sensex, would show that although the sensex and the various stocks have increased, the PE has been considerably low. At the level of 3000, the PE was aroung 16 level and now also the sensex PE is 15.3.
This clearly shows that the Sensex has not increased blindly and neither is it overvalued now. The sensex has increased with a good increment in Earnings and a high EPS has kept down the PE ratio.

Okay now, lets see what are some of the factors that can slow down the Economic Growth:
1> Monsoon Conditions
2> Oil Prices(I believe currently around 59$ barrel-plz check the exact figures)
3> Results and future prospects that the frontline counters show
4> Political Issues(which should not play a grand role)

Now what should I buy, will every stock increase?

Yes if the sensex increases tremendously, then I would say 80% of the counters will increase. It is important at this level that you "Choose the best and Ignore the Rest".
1> Entry should be made in a counter in 3 sets.
2> Do not put all your eggs in one basket
3> Do not overestimate? Read, hear analyse youself before you make a decision
4> Enter into stocks that are fundamentaly strong, or tend to be fundamentaly strong. (I am not saying do not buy penny stocks etc)
5> Do not be driven by a single day's chart, check past records and performace over the last few quarters and last few weeks.

Please remember the above and you should be able to do well off.

Any suggestions are always welcome.
Hi Supratik,
Very nice write-up........Thank you!
Saint :)
 
#7
Re: Building Up A Portfolio At 7000 Level

well analysed supra.i have bcome a fan of yor intraday calls.you have a strike rate of abt 95.that is phenomenol.u r the star of my intraday threads .that is just great.made good money in seasia marine today n matrix labs yesterday.although i had to book lss of .65 per share on bajaj hindustan today as my call went a bit incorrect
 
#9
hi devansh_god,

There are couple of technical terms that you need to know.

Check out the link http://www.crnindia.com/technicalterm_a.html

Do get back for queries. We shall try to sort it out.
 
#10
Hi All,

Let us put some more addition to our portfolio.

The stock name is Diamond Cables. The stock has been trading in its 52-weeks high with an upward freeze today.

The counter has turned out to be good.

It has been at 14 level long, moved down to 11(in low volumes) and picked up from there to 20s. I believe still there is further upside in the counter.

I would suggest to buy the counter in small quantity and accumulate on dips.

Also adding another strong counter Ashok Leylands.
The counter had gone for a stock split about a year back. It was at 230 at that time.
The counter has not shown much interest but always kept up good volumes. This means that people have accumulated it at the 23-24 level.

It is now trading at 27. I suggest to buy this at 26-27 level and target 35-37 ina quarter.
 
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