Recent market movement

Hi Friends,

We are sorry for not posting any new posts and not replying to your queries for quite some time due to hectic busy schedule.

In terms of market movement in recent days, as we suggested in March that market will be driven higher upto 18000-18500 that came true and after that market receded upto 16000. We feel that this is the last chance for market consolidation (which could take upto next 4-6 months) before market heads higher and make next base at 18000-22000 which could be a range for next year (2011). This will also give you plenty of buying opportunity for good stocks at cheap price for longer term.

Europe crisis is still not over and will linger for next few months. This crisis will help for market consildation in next 4-6 months. Else from economy front, we are coming out of rcession gradually and economy growth has been tremendous in past few months.

Europe crisis  (whether intentional/non-intentional), is giving all of us very good last opportunity to buy quality stocks at cheap price. So exploit this opportunity and be in market for long term.

Happy investing…

-Netstock

Market is expected to rebound smartly today

Dear Friends,

As market has plunged more than 7% in last few days and many stocks plummeted, we are expected to recover smartly today.

Market is likely to open Gap Up today and stocks will rebound.

Hope you are using any deep corrections as buying opportunity for long term.

Happy investing

-Netstock

Magic of compounding (Make 4 Crore in 20 years from initial investment of 50000)

Dear friends,

We always try to bring some exciting information for you. This time we are bringing the Magic of Compunding.

Suppose you invest Rs 50,000 today at the age of 30 years and your annual return from Stock market is 40%. At the age of 50 years, your Rs 50000 will turn into more than 4 crores. We have put calculations below for your reference.

1st year	70000
2nd year	98000
3rd year	137200
4th year	192080
5th year	268912
6th year	376477
7th year	527068
8th year	737895
9th year	1033052
10th year	1446273
11th year	2024783
12th year	2834696
13th year	3968574
14th year	5556003
15th year	7778405
16th year	10889767
17th year	15245673
18th year	21343943
19th year	29881520
20th year	41834128

You can see that after 20th year, your initial investment of 50,000 has turned into Rs. 4,18,34,128.

What we are trying to tell you is that if you are not too greedy in stock market than you can definitely make atleast 40% annualized return on an average and can retire at the age of 50 with good bank balance.

In this cycle of 20 years you will have lots of Ups and Downs but if you stick to good stocks and take profit time to time and invest properly, this is least achievable and can be more as well.

-Netstock

Mid Term Recommenation – Indag Rubber (Potential upside 50-100%)

Company Name – Indag Rubber

CMP – 112 (as on 21st April 2010)

Target - 150 and 200

Time Frame – 1 year

Stop Loss – 85

Trailing Stop Loss – 66

Stock Category – Growth

Reasons to buy – Strong fundamental and poised at all time high hence no resistance at upper level.

-Netstock

Our performance GPIL (55% gain in just 4 months)

GPIL (Godawari Power & Ispat Limited) Recommended on 20th Dec 09 at price 175 for long term as Growth Stock

Current Gain =  55% (in just 4 months)

CMP = 274

http://netstock.wordpress.com/2009/12/20/godawari-power-excellent-growth-stock-for-long-term/

-Netstock

Short Term Jackpot – FSL (potential upside 25%)

Buy First Source Solution for short term (upto 3 months) target of 36 and 40+

Keep strict stop loss at 28

-Netstock

Alok Industries – Analysis

Dear Friends,

Alok Industries is one of Midcaps which has not participated well in this Bull so far. One of the reasons is that Textile sector has still not recovered very well. If we look at fundamental we can see that company is posting strong sales for every quarter. What is lacking so far is Net profit. Net profit of a company is nothing but just a manipulation. You can have net sales of 100 Crore for a quarter and you can still show net profit as 90 crore by way of tricks. However, a good company will not tweak their balance sheet. This is where we love Alok.

Now coming to technical aspect of company, Alok is still moving side way and have not broken its longer term key resistance level of 30. Once 30 is crossed, Alok will start smooth sailing.

Our expectation from Alok -

We love this stock and we have previosuly recommended in one of our posts to accumulate Alok at around 20 for longer term. We are 100% confident that this stock will touch 100-125 in next 4-5 yrs. Another good part of Alok is that this is high dividend yielding stock and have yielded approx 10% annual dividend for last 10 yrs. From net profit perspective, we expect Alok to post higher Net profit sooner than later and this stock will start moving higher and higher.

Recommendation -

As this stock is still languising at cheaper price as of today, accumulate Alok at CMP for long term target of 100-125.

Cheers…

-Netstock

Two recent targets achieved today !!!

Dear Friends, We are happy to announce that our recent recommendations have achieved their targets today.

1. Sensex target of 18000 achieved given on 3rd Feb when Sensex was at 16210.

http://netstock.wordpress.com/2010/02/03/market-will-consolidate-and-move-up-now/

2. Rohit Ferro short term target of 58 achieved given on 8th Jan when Rohit Ferro was at 46.

http://netstock.wordpress.com/2010/01/08/stock-recommendation-rohit-ferro/

-Netstock

How to play stock market for next 2-3 months?

Dear Friends,

As big quarter ended on 31st March along with Financial year, every one has lot of expectations from stock market. Everyone wants their personal holdings to grow. The big question is what should be the startegy?

As historically, March-June always produce huge run up in market, we suggest you to hold your holdings and sell all your loosers in this rally in next 2-3 months. Then wait for an opportunity when market will start correcting (possibly in Jun-Aug), and utilize this opportunity to buy good growth shares at discounted price.

We said on 3rd Feb (http://netstock.wordpress.com/2010/02/03/market-will-consolidate-and-move-up-now/) thatSensex will head for next target of 18000-18500 in next 3-4 months, we are nearly there and we should definitely tocuh this target any time now.

Keep in mind - Dont sell your stocks (specially losers) in hurry but sell with little profit than nothing in this rally.

-Netstock

Stock recommendation – Karur Vyasa Bank (Medium Term)

CMP – 467

Target – 650+

Time Frame – 3-9 Months

Stock Type – Growth