Reasons behind current rally in Indian IT stocks

Recently Indian IT stocks rallied significantly just after TCS results . Reason is pent up demand of IT stocks because buying in IT stocks was almost neglected and it was expected that in this sector results will be very poor. When TCS results of Q1 24 were declared and analysed it was conceived that growth was muted and the numbers was not so bad . IT stocks TCS and Infosys were oversold and were at the position of value buying .One fact was more, a differential between level of NASDAQ and value of Indian IT stocks had been created. These situations leads to heavy buying in Indian IT stocks and gives rise a strong rally in Indian IT stocks specially in TCS and Infosys  The above perception has some how been changed after Infosys numbers.

What Stock Market Teaches Us

For traders  stock market teaches a number of lessons. According to some statistics more than 90% traders are loser in the market but to be in the club of less than 10% they try again and again and lose a lot of money over some period of time.A successful trader also passes through such situations but by utilising his analytical ability he learns  some techniques and skills to be followed while trading.Traders also observe about their behavior during trading. They might feel impatient and indecisive specially in situations of loss making. If anyone want to be a successful trader one should come out with these situations.Successful traders realize that stock market teaches atleast three things , one is patience, secondly discipline and third one is decision making.These all will be developed gradually. If all these virtues are being developed in your behavior and you are feeling it in yourself while trading certainly you are leading towards a successful trader.At last I would like to say with my own experience that it is  journey from stock trading to spirituality.You feel calm and cool when you become a successful trader.

About ITC

This view is just an angle to see  how deeply the stock price of ITC is depressed in coparision to the others FMCG stocks.On comparing its price to the price of HUL  it is just one third.  Imagine a company of Rs 430000 cr is just making  the profit of nearly Rs  2000 cr and a company of just Rs 215000 cr is making profit of more than  Rs 3200 cr. Is it justified? Absolutely not .But  it is stock market.Here prices of stocks doesn't follow any rule.Perhaps this is the beauty of stock market.

Turnaround of housing sector

 News are coming from all corner that sales of homes is increasing and demand is reviving in real estate sector. This is the right time to see and think about stocks related to this sector.ln my opinion hdfc,lic housing, mas finance  are some name to be mentioned worthy.On Monday anyone may keep attention on lic housing finance.It has increased around 7% with very high volume in Friday session. If  there is nothing abnormal in local and global conditions.it will open in green it's probability is very high.On account of any reason if it opens in red that will be buying opportunity and no one should miss it.I have taken long position in lic housing finance in the anticipation of positive opening. Positional call is also recommend in hdfc and lic housing finance.All facts mentioned above are true only in terms of probability.

Changing visions about yes bank

• We have already written and given a vision on fortune of yes bank on July 18.Now I would like to thank moodie for upgrading  yes bank on the same ground what I have mentioned.When yes bank was in crisis, group of banks specially SBI came out and invested big money in the bank and gave lifeline to yes bank.After sometimes yes bank showed confidence and took a very big & bold step and launched a very big fpo of 15000 crores and it was almost fully subscribed. This successful event is the solid foundation for changing the fortune of yes bank.It was firstly  banks and then investors who were main instruments behind the success story,if it happens, of yes bank. It is also appreciable the way this crisis was resolved.

Gold to set new targets for Equity Market

At present the price of gold is running very fast and is in the process of making highest point in this cycle of run. It will take time to reach at the highest point.After that it will consolidate for longtime with negative bias.That will be the  time when equity market start to pick up and try to set new highs and highs. First it will break  record high which has made earlier and after that new highs and highs for a longtime until its cycle completes.It has been observed that it is gold that navigates the coming prices for equity market. If gold price is to be set anywhere between 53000 to 60000 or beyond this limit that will be the new target for equity market. Equity market will gradually follow the target set buy gold and after sometimes it will go beyond that point and remain will be in bull run for a long period. It will make many highs during this period . Cycle of gold and equity market goes in this way. For illustration If highest price of gold is to be set at 60000 per 10 gram , in 3- 4 years equity market sensex will cross this point

Yes Bank's Fortune

Yes Bank FPO got tremendous and wonderful response.It subscribed more than 95%. Remember it was a very big FPO of almost 15000 crores.Although retail investors did not participate enthusiastically ,the FPO got  almost fully subscribed.Most of the shares are in the hands of QIB and HNI.It may turn the fortune of yes bank. It seems that it's price will not come below 15 and after three months it may go above 30.Good Luck for retail investors.