Sunday, October 01, 2006
By krsna Khandelwal – A Stock Market Vedic Theory proponent
I am just reproducing the matter posted on this very site on 23 July 06;it did encompass the mood and idea prevailing at that time. Since than much has happened and now, the frenzied atmosphere is back in the markets. You have been listening to my word of caution for some time now. Those who acted on advice then may please note that I would like them to be in cash to the extent of 60% and wait for the right time to invest back again. The text of the matter is given below:
‘Market Matrix – Weekend Sectoral Scan for Investment – 23 July 2006
Now, it is the time to be foolhardy and stick with investment; you should however slowly invest and finish your full potential to invest until middle of November2006. India story is in tact and is getting better by the day. The steel sector though under threat from China side is still good in scope in India. Cement sector had been advised to stick with and has given good rewards since then. You may recall that the auto sectors was advised to be disinvested and you now have much lower prices to enter back when you deem fit considering the future prospects which according to me are yet not good enough.
IT sector would remain sluggish; in spite of such profit growth, no spectacular advance has been seen. I think Wipro management would reduce promoter holding in this scrip and it would feel heat on this account. Some smaller companies presently out of favour may give pleasant surprises.
Traditional industries are better placed now as the market is growing for their products and no substantial capacity is being added. Retail sector is not in good shape either. The companies like L&T may reward handsomely hence may be bought whenever there is decline in market. Let there be further unfoldment of results, more clarity will emerge. The actual investment should be done with your own homework as this advice is without any obligation on my part.’
My latest stock specific advice would follow shortly on the basis of analysis under the ‘Panch Tattva Teknik’ after the results for the quarter ended 30 Sep 06 are in hand.’