can the fundamentals change so frequently ?

Thomas:

the other day one US guy (the one who predicted the collapse of US Economy) said that Indian Stock Market Bull run is not appropriate (not in line with fundamentals).

the very next day Jhunjunwala told that markets will touch 19,000 soon.

then there was news that Sensex has outrun Nifty and that investors should be weary and the markets could fall.

today morning there is news that Bear market is over and we see a long term Bull run from now.

WHAT NONSENSE IS THIS !!!! all in just 1 week !!!

all the above news is from EconomicTimes.com

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Laxmikanth:

Fundamentals are at the end of day an analyst’s estimate of what he perceives the company (or economy at large) is worth and what the future holds for it, everything basis many assumptions. As the values in assumptions change, opinions change.

Anyways, why do we have to wait for a Rakesh Jhunjhunwala or a Shankar Sharma to tell us that the bull run has begun or not!!

_____________

Thomas:

i sometimes feel that "first the markets react (move up or down), then the analysts try to fit a possible reason from a list of reasons they have"

and how ridiculous it is for analysts to give contradictory "fundamental" remarks in such a short span !!

_____________

Laxmikanth:

I agree.

However, to be fair to the analysts, for the long-term, all analysts are positive on every company. All their analyses are for short-term periods.

___________________

Kishore:

ya..I agree with laxmi,

I feel that Analysts create hype in the market and if you see anlayst reports ,every report shows you larger picture of every damn industry. Do not trust ANALYSTS everytime

_______________

Laxmikanth:

Correcting your statement, do not trust the analysts blindly!!

_____________X______________

modus operandi

Which companies do we invest in? This time we have to be careful. Not to invest in companies which we have not understood well. Understand well with proper reasoning - at least the reasoning that we all can give together.

So which companies? Let us choose the 50 companies in Nifty then let us study each of those companies and see which of these companies are worthy of our investment.

We will study each of these companies in various perspectives - Past growth % for 4 years; Future growth opportunities; PE ratio; etc (etc because I cant remember of any now but I am sure something will come up in future ;) ).

List of the 50 companies:
1. ABB Ltd : ELECTRICAL EQUIPMENT
2. ACC Ltd : CEMENT AND CEMENT PRODUCTS
3. Ambuja Cements Ltd : CEMENT AND CEMENT PRODUCTS
4. BHEL : ELECTRICAL EQUIPMENT
5. Bharat Petroleum Corporation Ltd(BPCL) : REFINERIES
6. Bharti Airtel Ltd : TELECOMMUNICATION - SERVICES
7. Cairn India Ltd : OIL EXPLORATION/PRODUCTION
8. Cipla Ltd : PHARMACEUTICALS
9. DLF Ltd : CONSTRUCTION
10. GAIL (India) Ltd : GAS
11. Grasim Industries Ltd : CEMENT AND CEMENT PRODUCTS
12. HCL Technologies Ltd : COMPUTERS - SOFTWARE
13. HDFC Bank Ltd : BANKS
14. Hero Honda Motors Ltd : AUTOMOBILES - 2 AND 3 WHEELERS
15. Hindalco Industries Ltd : ALUMINIUM
16. Hindustan Unilever Ltd : DIVERSIFIED
17. Housing Development Finance Corporation Ltd(HDFC) : FINANCE - HOUSING
18. ITC Ltd : CIGARETTES
19. ICICI Bank Ltd : BANKS
20. Idea Cellular Ltd : TELECOMMUNICATION - SERVICES
21. Infosys Technologies Ltd : COMPUTERS - SOFTWARE
22. Larsen & Toubro Ltd : ENGINEERING
23. Mahindra & Mahindra Ltd : AUTOMOBILES - 4 WHEELERS
24. Maruti Suzuki India Ltd : AUTOMOBILES - 4 WHEELERS
25. NTPC Ltd : POWER
26. National Aluminium Co. Ltd : ALUMINIUM
27. Oil & Natural Gas Corporation Ltd(ONGC) : OIL EXPLORATION/PRODUCTION
28. Power Grid Corporation of India Ltd : POWER
29. Punjab National Bank : BANKS
30. Ranbaxy Laboratories Ltd : PHARMACEUTICALS
31. Reliance Communications Ltd : TELECOMMUNICATION - SERVICES
32. Reliance Industries Ltd : REFINERIES
33. Reliance Infrastructure Ltd : POWER
34. Reliance Petroleum Ltd : REFINERIES
35. Reliance Power Ltd : POWER
36. Satyam Computer Services Ltd : COMPUTERS - SOFTWARE
37. Siemens Ltd : ELECTRICAL EQUIPMENT
38. State Bank of India : BANKS
39. Steel Authority of India Ltd(SAIL): STEEL AND STEEL PRODUCT
40. Sterlite Industries (India) Ltd : METALS
41. Sun Pharmaceutical Industries Ltd : PHARMACEUTICALS
42. Suzlon Energy Ltd : ELECTRICAL EQUIPMENT
43. Tata Communications Ltd : TELECOMMUNICATION - SERVICES
44. Tata Consultancy Services Ltd(TCS) : COMPUTERS - SOFTWARE
45. Tata Motors Ltd : AUTOMOBILES - 4 WHEELERS
46. Tata Power Co. Ltd : POWER
47. Tata Steel Ltd : STEEL AND STEEL PRODUCTS
48. Unitech Ltd : CONSTRUCTION
49. Wipro Ltd : COMPUTERS - SOFTWARE
50. Zee Entertainment Enterprises Ltd : MEDIA & ENTERTAINMENT

It will be a long process but it is worth it as it is better to do something constructive than nothing at all - with respect to stock investment.

hope to rise

Proposed action for tomorrow's trade	None
Today's action	None
Famex	6238
News for today : 1 :	Wall Street started 2009 with a big rally Friday as investors, brushing aside a disappointing report on manufacturing, sent the Dow Jones industrials up more than 250 points and to their first close above 9,000 in two months. All the major indexes shot up more than six percent for the week.
News for today : 2 :	The government and the Reserve Bank announced the fiscal and monetary policy measures on Friday evening, the market has started displaying strength, and perhaps the equity markets will start reacting positively at early trade on Monday morning.
Stock Barometer	4 Good
Strategy for today :	Evaluate each holding
Quote for the day :	"God gave me my money. I believe the power to make money is a gift from God... to be developed & used to the best of our ability for the good of mankind. Having been endowed with the gift I possess, I believe it is my duty to make money & still more money & to use the money I make for the good of my fellow man according to the dictates of my conscience." - John D. Rockefeller 1905, 1839-1937, the richest man of all time, worth $200 billion (in 2001 USD)

back in red !!

Proposed action for tomorrow's trade	None
Today's action	None
Famex	9715
News for today : 1 :	Wall Street headed for a slightly lower open Monday as investors watched to see if oil will extend its recent decline and also awaited a reading on existing home sales.
News for today : 2 :	-
Stock Barometer	3 Average
Strategy for today :	-
Quote for the day :	"Finding your entrepreneurial spirit and making it strong is more important than the idea or business you are developing." - Robert Kiyosaki

d risen hope

Proposed action for tomorrow's trade	None
Today's action	None
Famex	10531
News for today : 1 :	Wall Street rebounded smartly Friday, shooting higher as a surge in the dollar and another plunge in oil prices eased some of investors' worries about losses at mortgage finance company Fannie Mae.
News for today : 2 :	Rajen Shah, Chief Investment Officer, Angel Broking feels there are no more positive news to take the Sensex substantially up from the current levels and the markets are taking a breather after the 20% rise in such a short span of time. He said, �At 15 times the earnings one cannot be too bullish on the market especially in any of the current scenario where there is uncertainty about the movement of crude prices and inflation.� So, he believes it is going to be a rangebound market with a more stock specific movement than the indices going significantly up from the current levels in the short-term. But, he said the long-term looks very bright and sunny.
Stock Barometer	2 Good
Strategy for today :	Sell when price is good
Quote for the day :	"Every day I get up and look through the Forbes list of the richest people in America. If I'm not there, I go to work." - Robert Orben

rising again

Proposed action for tomorrow's trade	None
Today's action	None
Famex	9674
News for today : 1 :	Oil prices continued a 3-week slide on Wednesday in Asia as expectations that this year's surge in energy costs are undermining U.S. gasoline demand, sending crude below $122 a barrel. Investors expect more evidence of falling gasoline consumption when the U.S. Energy Department's Energy Information Administration releases its weekly oil inventory report later Wednesday, said Mark Pervan, a senior commodities strategist with ANZ Bank in Melbourne.
News for today : 2 :	-
Stock Barometer	3 volatile
Strategy for today :	Hold to stocks. And invest in good stocks.
Quote for the day :	"Doing more and more with less and less is one form of being generous. In fact, the easiest way to become rich is by being generous." - Robert Kiyosaki

gaining ground - but for how long ?

Proposed action for tomorrow's trade	None
Today's action	None
Famex	9323
News for today : 1 :	Wall Street fluctuated Monday as investors worried about earnings at drug makers Merck & Co. and Schering-Plough Corp., and oil prices moved higher. Both pharmaceutical companies fell sharply after they took the unusual step of delaying their second-quarter results until after the closing bell. The last-minute switch will allow European researchers to present data from a study of the companies' cholesterol drug Vytorin, and some analysts predict the results might be bad news.
News for today : 2 :	Technical Analyst Ashwani Gujral said beyond a knee-jerk reaction the market will not look at politics very seriously. He feels investors should book profits, if there is a gap-up on Wednesday.
Stock Barometer	3 volatile
Strategy for today :	Hold to stocks. And invest in good stocks.
Quote for the day :	"Diversification is a protection against ignorance. It makes little sense for those who know what they're doing." - Warren Buffet