MarketFastFood

– 101209 – We in our previous post had mentioned on the event/s which we fear may spook the market, and today the whole market is reeling under the pressure of the same fear! At the time when all the global markets are doing well, Indian stocks are tumbling and today was literally a bloodbath with the small cap index falling almost 6%

– Today the sentiment turned worse after Ratan Tata defended his corporate policy in reply to a Rajya Sabha MP. This comes on back of the fact that Ratan Tata, Neera Radia phone conversations are already available in the open. Being straight forward in India and doing business is very difficult, we all should acknowledge that, but that does not mean we should claim to be Mr.Clean!

– Ambani’s are another set of examples. They may be clean or may not be clean, we all may have some notion about them but they atleast don’t claim to be clean! It’s not easy to be clean as the system itself is made up like that. Unless actions are taken on corrupt politicians, corporate houses, even journalists the system will remain like this. We need a leader with a back bone!

– SEBI is busy cracking onto companies which are/may be, rigging their stock prices. The actions taken by SEBI will definitely send out some fear into such erring managements and taking the share holders on a ride. These actions will atleast make a person think 10 times before doing a wrong act in future.

– No company is going to accept that they have done something bad and all the managements be genuine or not will come out and say we are “Clean & Honest” It is again difficult to segregate between the genuine and others. We literally on every interview on National and Regional TV channels have been giving a sell call on stocks like Karuturi since the fundamentals just don’t back the stock prices. These are stocks which punturs deal into and are suitable only for speculators.

– It’s really time to doubt all those claiming to be most Honest & Clean as this credibility cannot be obtained by “self-certifying” but should be honoured by others. At MFF we like to perform, we like many others post our recommendation’s which may perform or may not perform which builds our credibility over a long term, that’s something which the readers have to judge. We never claim anything and never would do.

– As expected earlier the LIC scam has turned out to be almost a non-issue with RBI itself today mentioning that there is nothing to fear as almost all loans, (though may have been issued by taking a bribe) have been issued as per the procedures and cannot consider them to be Bad.

– There is liquidity crunch in the banking system currently which may get corrected in next few weeks. It is reasonable for some of the FII’s to book some profits during the year end.

– Market looks interesting now with a longer period horizon. Short term will be driven by the political developments on the various scams going on. We expect value buying in mid and small caps to pick up anytime now. A very good support area for Sensex comes at 18800-18600 and for Nifty at 5640-5600. These are support levels which, if broken, will take the Sensex to 17800 which has already been mentioned in one of our another article.

– The undersigned had in the recent issue of the largest circulating magazine in TamilNadu “Nanayam Vikatan” recommended 5 stocks which should be looked at seriously in this market and should be slowly accumulated on very fall. We would like to mention those stocks here and would expect some of you to join our product MarketFastFood if you make money.

– These stocks have been recommended with a view of atleast 6-12 months. The stocks are mentioned below:

1. Noida Toll Bridge CMP Rs.27.25

2. PowerGrid CMP Rs.97.45

3. Reliance Infra CMP Rs.777/-

4. Escorts Ltd CMP Rs.156/-

5. Educomp CMP Rs.516/-

   We request investors to slowly accumulate these stocks. The CMP is from bseindia.com as at 9/12/10 23:25 Hrs.

– Stay connected with MarketFastFood

Stock Specific Disclosures: We hold all the above stocks in our portfolios and have been recommending to MFF subscribers from time to time. VRIDHI‘s Stock Broking clients also may be holding them as we have been recommending these stocks to them aswell.

Jai Hind

Vivek Karwa

CERTIFIED FINANCIAL PLANNER^CM

& INVESTMENT STRATEGIST

Office Mobile: (+91) 98-405-405-75