Is it the right time to Invest?

There is a lot of uneasiness in the trading community about the bull run. Investors are skeptical about putting in capital at this stage as they fear they might get in at the TOP and the market will correct from here. Technically, though the rally cannot last one sided for eternity, but this doesn’t mean that we will see a major correction from here. Throughout the past 1 year we have been cautiously bullish, meaning we didn’t expect a major correction, nor did we expect this blockbuster rally. For the investors, a correction or a range bound market from here will provide an opportunity to get into stocks with strong fundamentals, good management at cheap valuations. In the coming months, we will see the non pharma, non fmcg stocks gain momentum. Banks will continue to be part ... Read Full Article

RSSOFTWARE: A long term view

RS SOFTWARE RS Software is a medium size software company based in Kolkata. The company’s major focus is on the online payment industry since it’s inception in 1991. Apart from this, the company also indulges in development of application for Software companies. Let’s start of with a peek into the company’s financials. Growth Measurement The company’s revenues are growing at a 5 year CAGR of 16.29% from Rs. 149.57 crores in FY 08-09 to Rs. 318.16 Crores in FY 12-13. The company’s margin have improved over the years and now the Net profit margin stands at a healthy 11.92% The company is able to sustain a good growth in revenues, the YOY growth bein 20%+ from the past 3 years. This is complimented by the healthy margin being maintaine... Read Full Article

NIFTY: Over-valued or Under-valued?

Nifty is hovering around the 6000 mark. Life time highs are 5% away but still sentiments are very bearish in the investing community and some are even going on to the extent of saying that the market is in a state of a bubble and a 30% correction from current levels is inevitable. Logic being given is that midcaps and small caps are available at fractional rates of their price in 2007. Many blue chips are also down by 50% since then. In this article, we attempt to look at the valuation of the Nifty and compare it with the historical trends. Nifty Monthly Chart The above chart is the monhtly Nifty chart. The horizontal line on top shows the triple top it has created since it’s peak of early 2008. The 2 vertical lines show the time of the peak respectively. Notice how the hist... Read Full Article

Torrent Pharma: A fundamental view

Smart money was the only return generator in the past 5 years from when the index has been moving sideways and  midcaps and many bluechips too have been losing value continuously. Smart money was what flowed into the FMCG, IT and Pharma space. Even if seen from a view outside the stock markets, the past decade has been about these 3 sectors and the boom they have been seeing! Many investors regret having missed the sweet returns these sectors have generated and instead were stuck on to the traditional Power, Engineering and other manufacturing sectors which have seen negative returns of 50% in this time. When asked if they will invest in Pharma now, they say that it is too expensive and priced out. Ofcourse, it is tough to invest for long term in shares which have P/E ratios of 40-50 ... Read Full Article

Diwali 2013: Stocks to BUY

First of all, we would like to wish you and your family a “Shubh Diwali” and lots of happiness, wealth and good health! Diwali, the festival of lights has a lot of importance in the financial and business community. The stock markets in India have a special trading session on the occasion of Lakshmi Puja which is known as “Muhurat Trading”. On this day, investments are made which an investor generally holds for years and for purposes such as education of his children, their marriage and other life goals. We at DalalStreetBulls would also like to thank all our blog readers and visitors who have shown great interest in our blog and thus have helped us generate thousands of visits every month! We will work towards growing the count and come up with some great trades in... Read Full Article

Aurobindo and Nifty: The Correlation

We have come across an interesting pattern and relation between Aurobindo Pharma and Nifty. Aurobindo Pharma seems to be roughly a few trading sessions ahead of Nifty! The charts look similar and have the similar characteristics. The target as per this trend is:  A NEW HIGH! Aurobindo Pharma and NIFTY 1. Look at the semi-circular move.2. Point A shows that Aurobindo had predicted a bottom ahead of NIFTY.3. Look at the falling trendline range, even that is in tune. The movements in Aurobindo are ahead of NIFTY.4. Look at the major bottomg B and it’s structure! Similar in nature for both.5. Even the Gap’s appear to be in sync. Future Movement:Aurobindo Pharma has broken the falling trendline resistance and has started moving to highs after a long time. If the charts... Read Full Article

Explaining the NSEL Scam

The NSEL scam has hit the financial community hard and raised questions on the governance of exchanges and brokers and the concept of a commodity exchange itself. The newspaper headlines are mostly relating to NSEL scam and it’s estimated scale of Rs. 4,000 crores to Rs. 6,000 crores. Many people who invested in e-gold, e-silver and ETF’s are worried about their hard earned money and what will happen to it. Even those who trade in the commodities market are fearing a shut down. So what is the NSEL scam all about? NSEL NSEL stands for National Spot Exchange Limited and is owned by Financial Technologies which also owns the MCX. NSEL was operating unregulated as it didn’t come under the scrutiny of the Forwards Market Commission (FMC) because of it being a Spot mar... Read Full Article