27-Feb-2009 Short Term Calls

As Government has given more stimulus packages for Textile and diamond industries, Our Fiscal Deficit is reached 300,000 Cr for this year. Government is concentrating on getting more votes and our GDP is dropping day by day. Everything is becoming very cheap and people are feeling happiness about it. but nothing to smile in it, We will see all effect after election when our Nifty will reach 2180.
Effects of more stimulus packages
- Stock market will go in negative direction because government will announce package when there is critical situation.
- GDP is going towards 5.Expected GDP for 2009-10 will be 5 and same for 2008-09 should be 6.
- Fiscal deficit is increasing so we have to face problem when new ruling government will come and they will take some different action.
- don't invest money for long time now. If you want to invest then invest it for election time as we will see some rally before and after election.
- Rupee is becoming very low ( 1$ => INR 50.6)

Today's call
- Nifty will not go below 2500 now. It will rebound from it.
- Exit GOLD (We can see $900 level soon) - Maximum it can go $967
- Hold Educomp for target 1800. ( Buy call given yesterday@ 1500 )
- Buy Aban Offshore on deeps. It will bounce back after election. (It may touch 290 - If you can take some risk and hold for 2 year)
- Don't buy Punj Llyod as it can touch 72.
- Exit Bharat Forge ( Target Achieved 90 - today trading @ 91.7)
- Hold Powergrid for Target 102 ( SL 91 )
- buy LIC housing @ 197/195 ( You can hold it for 2 to 3 months)
- Buy MCLEOD RUSSEL for target 53: Long term target 64 (follow target strictly)
- Ranbaxy: Buy @ 148 ( Not today but it should come there if 156.8 level breaks)