morning thoughts...

As said and expected the markets continued to stay in a range with no much activity in index , however good movement was witnessed in individual stocks in which certain pharma and banking stocks were the front runners.

Technically the markets still looks volatile and will remain in a range of 6650 – 6750.

On the downside a breach of 6635 might insert weakness and nifty might plunge to 6550 levels , whereas on the upside stiff resistance will be witnessed around 6735 levels.

At the current juncture, the Sensex is seemingly trading at 16.7 times its estimated one-year forward EPS, which is equal to its long term average. And guess what, this is when considering a modest growth rate of 10% in EPS. 

Nevertheless, given that the Sensex is a collection of many stocks, it goes without saying that taking an individual stock approach to investing would make sense. With a lot of uncertainty over how the economy will shape up a year from now, with the new government about to come in, sticking with companies that that are likely to post good growth figures would be essential. While there may be certain pockets of the market - such as the defensives - that offer such a feature, the key aspect to be remembered here would be not to overpay for such stocks; as the valuations could be driven by sentiments.

The market run up in recent periods would have actually seemed euphoric. But that does not seem to be the case, at least going by the data provided above. What the data indicates is that now is as good a time as any to invest in stocks from a long term perspective. An investor can be assured of reasonably good returns. 

Coming to the commodity markets bullions too will stay in a range with selling pressure on higher levels.

Base metals is not witnessing much activity but nickel has broken out from a range and could see higher levels , energy will see selling pressure at higher levels.

Last days calls given outperformed the markets

Shasun chemicals hit upper circuit

Biocon rose by 17 rs

Icici bank 1320 ca rose by 12 rs

Monnet ispat rose by 14 rs

Pfc 200 ca rose by 2 rs

Bank nifty gained by 156 rs

Nickel gained by 47 rs

Gold gave 75 rs

Silver and crude stayed flat

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