Our analysis says we are likely to see positive moves in most of the global stock markets in the first half of 2011. The first half of 2011 will be volatile with upwards bias, and the second half will have a downward bias.
Category Archives: Indian Stock Market
Indian Stock Market: Both FIIs and DIIs are Selling
For the last two days (Dec 6 and Dec 7), something uncommon is happening in the Indian Stock Market: Both FIIs and DIIs are selling! (Dec 6: 500 crore net sell; Dec 7: 1000 crore net sell). This is uncommon because one of the two parties usually acts as net buyer when the other party is net seller.
In an entire year, we may not see more than 10-15 such days. It means all large players are seeing a need to cut their equity positions for whatever reasons. Till the FIIs start buying, we urge our readers to be cautious and not buy any new stocks or buy any new stocks at higher end of valuation like 52 week high, because profits are being taken out across the board. The best confirmation to start buying is when the FIIs start buying since they contribute to about 67% of the Indian stock market volume.
Buy DLF with 5 year timeframe
One of the best long term investment opportunities available today is the stock of DLF — India’s largest real estate developer, and a constituent of Nifty 50 Index. We believe property prices in India have increased nothing compared to the rise we will see in next 5 years. Thanks for QE2, global liquidity will continue to flow into India during the next 5 years, and all commodity prices including property will increase in the emerging markets like India; property prices may increase significantly more than metals. The recent plot sale of Rs 5 billion by DLF is a good example of how they can start monetizing land bank assets, which DLF has in plenty. If you want to trade DLF for Rs 20-30 gains, that’s your decision. However, we believe one can confidently buy at any price between 250 and 300 (which we got last week as well) and hold this stock for over 250% gain in 4-5 years, by when the stock may cross Rs 1000.