MFF – 100912 – 01:03 Hrs

– 100912 – What an eventful market India is witnessing. When every analyst was expecting a correction the market bounced back yet again! The major problem an Indian investor and every analyst faces is the half baked "Confidence" in Indian economy and its entrepreneurial skills. Many investor after Indian market shuts down starts focusing on the European indices then eagerly waits for the Dow Jones and Nasdaq to open and then sleeps after midnight, the moment morning comes they see what’s happening to Asian markets and then the SGX Nifty (people still have not started tracking Chicago Nifty, then they will find no time to even sleep) now finally a trend is clear for Indian markets and how many more points will Sensex again today or loose!

– We at MFF don’t understand why should an Indian investor focus on what is happening at indices of the countries which are almost economically backward today? These countries are currently delivering 0 to -ve growth compared to India’s 8+ and the IIP numbers declared on Friday shows that our growth engines are pumping with full thrust even now. This is the reason FII’s are pouring money and as usual they are making more money right now compared to an average Indian investor. Recall the MarketFastFood posting in which we had mentioned the way in which we have been selling our equity to the foreigners!

– We have full trust in Indian economy and the entrepreneurs who are really working hard are being innovative in their respective fields and business. We don’t have full confidence in the present central government which seems to have failed to deliver in all aspects be it internal or external or even the policy measures. Just by increasing the Tax slabs in DTC we are not going to achieve anything. Hence we should appreciate the skills of our businessmen who have been doing well with or without the Govt! Take the case of rotting food grains and think the state of affairs yourself and above all Prime Minister comes out and says that SC should not be commenting on such issues!

– Valuations may seem stretched at times but then we only have to buy individual stocks and have to be stock specific. The stocks which we have recently recommended in various forums have been doing well and should continue to do so. The Sensex resistance range of 18360-18600 and the Nifty resistance range of 5480-5555 which we have been mentioning for over three months now have been finally broken and as mentioned almost at the beginning of the year we are likely to reach, by year end 19300-20200 on Sensex and 5760-6070 on Nifty. The year end target if you notice don’t look aggressive but like last few months the ride may not be very smooth. Just think for yourself how many times we have fallen and risen between 17800-18300 range in last three months! Hence the range may remain to be small but its upto our skills to make money in those sea saw rides.

– MFF was since last two years, hoping about the huge business activity which the Common Wealth Games would bring in. Those hopes now have been fully shattered. We were expecting the hospitality sector to do amazingly well but now even US has warned its citizens not to travel to India during the games!

– Let’s recollect the recent past Free calls which were mentioned and also analyse if any of the stocks can be still bought by MFF readers.

a. ION Exchange Ltd: recommended at 140 with a MT tgt of 200+ has already surpassed all tgts and we had sent a msg also, to book profit on our MFF Free SMS group hence its no longer a fresh buy for us.

b. Karur Vysya Bank: after being recommended by our CIO Mr.Vivek Karwa on NDTV Hindu at Rs.580 and then on NDTV Profit with a year end price tgt of 750-800 has also been achieved before time! The bank has announced Bonus and Rights and hence we are not booking profit as of now anticipating a further rise after the corporate action is over.

c. Noida Toll Bridge: The stock has been recommended by our CIO Mr.Vivek Karwa on NDTV Profit at Rs.34.80 with a 12-18 months price tgt of 50+ The stock should be a slow mover but should move up gradually and hence can still be bought. BUY!

d. MAX India Ltd: The call was first send to MarketFastFood subscribers at Rs.158-160 itself and then by the time it was mentioned on the Free SMS group and TV the price went upto 165. The CMP is 171 and our tgt on the stock remains 200+ BUY!

– Obama is finally executing the promise he made during the elections by attacking the outsourcing business. The IT companies will definitely not be in good mood unlike the overall market. We have to wait and watch what happens finally since its something which we cant comment upon.

– Stay connected with MarketFastFood

Stock Specific Disclosures: As mentioned above we hold KVB, Noida, MAX in our portfolios and these stocks have been earlier itself been recommended to MFF subscribers. Our Stock Broking clients also may be holding them as we have been recommending these stocks to them.

Jai Hind

Vivek Karwa

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