Date : 16 Mar 2006 Time : 15:1:47
RIL driving Sensex....
State Bank scaling new highs every day with favourable announcements yet majority of the research houses are yet to give buy call in this stock. It had happened with Maruti Bajaj Auto and Tata Motors. Post Rs 1200 this will happen with SBI too. At every rise, issue of research reports with new targets will start coming. This is inevitable, simply because the value of SBI with 6 unlisted subsidiaries comes close to Rs 2000 plus. Why is as unknown investors driving FII liquidity that too at 15% premium. The reading between the lines is clear SBI looks undervalued on the basis of multiple triggers and can become a saleable story at Rs 2000. Therefore this trade.
RIL another stock started rising as per my expectations. It has already showed movement of close to 10% from the day I have reiterated my buy call on RIL. Suzlon is also on course and major movement will start in this counter in second week of April where I see it going past Rs 1500 just ahead of results. TCS has reportedly bagged Rs 4000 crs order from Citibank for 5 years which could be announced ahead of bonus announcement. Any way it is on course of my target of Rs 1800. In fact, I was the only person left to recommend TCS ever since Rs 1100 post result debacle few quarters back and it is rising as per belief. The target seems achievable in next 3 to 6 months. HLL, Tata Chemicals and Polaris two laggards from our research belt will perform brilliantly in coming days. Every dip should be considered as an opportunity to buy more for movement like Century, SBI to happen on these counters.
Now finally on Sensex, my target of HLL next year (Dec 2007) is Rs 450, RIL Rs 1500 and SBI Rs 3000 which should be a guide to calculate Sensex target. Correction of 1000 odd points in late April or early May is not ruled out. But only a correction not reversal, 10000 should act a major benchmark. KSB Pumps, RPG Cables, Pix Transmission all should be good picks for medium to long term. KSB entering into nuclear power and announcement should take this FII fancy stock to Rs 1000 easily. Ashapura Minchem when selected by us was a dirty stock at Rs 90 couple of years before and today every FII is after it at Rs 1200. Research can be only of two types ahead of time and behind the time. Former will require patience of "Rama" but returns like "Sita" whereas later one is like "Ravana" and his "golden lanka".( Think short and get ill used).
