Investing in which stocks will be beneficial and how will the market move, know the opinion of experts

Stock Market Update: The market has passed its first test with the landslide victory of the BJP in Gujarat on 8th December. However, it has faced defeat in Himachal Pradesh. Now the next exam is on December 16 in America. We had said on Thursday that the Nifty would go below 18650 before the market bounces back. It happened just as we were anticipating. There was a support at 18600 but Nifty has broken that too.

Retail investors’ stake 7 percent
The market feels that everything is over with the election results as if it was an election rally. Some segments ranging from domestic investors to HNIs have shorted the Nifty’s target of 15000. But some foreign portfolio investors (FPIs) and HNIs are continuously buying in block deals. But Nifty may start an uptrend. Short covering will start above 19000 only. The number of retail investors has reached 11.76 crore. But their stake is only 7 percent in the Indian stock market. That’s why there cannot be a big fall in the market.

The market will continue to grow
We are associated with 23000 members mostly retail investors. Some are ultra HNI and some are institutional investors as well. They help us to know about the market. Through these we review the market trends. Realized at 18700 what was happening at 15200. Retail investors are taking part in the boom in the market. Foreign portfolio investors and retail investors are long in the market but HNIs and domestic institutional investors are selling. Gone are the days when foreign investors used to go on holiday from 16 December onwards on Christmas.

Foreign investors continue to buy
Foreign investors have made purchases worth Rs 36,000 crore in November, while in the first week of December this figure is Rs 6,000 crore. The mood of the market can be gauged in such a way that operators and HNIs are continuously buying shares in block deals. If the market will not go up then why are they buying shares of Paytm, Zomato, Policybazaar in block deal. Investors are investing in these stocks to make big money in the coming days. I have seen IDBI Bank selling SANDUR’s share at Rs.70. See where the price is today. IDBI has sold HCC shares, those who have bought 8 crore shares have not bought to make 100% return. We released a research paper on SEPC a few months ago when the rate was Rs 4.75. Banks have 40 percent stake in this share as well. Banks will also come out of this like HCC. If structuring is happening in this way, then SBI can come out of Yes Bank after the lock in period is over.

Many stocks will become multibaggers
We cannot change the mind set of investors but 25000 members of CNI are happy to see our professional approach to stock selection be it large cap or mid cap or small cap or micro cap. We think the bull run is just beginning. We will see big boom in 3 years from 2005 to 2008. Many stocks will become multibaggers. Penny stocks like SEPC, HCC, Aanchal Ispat, Dish TV, Saboo Sodium, Bank of Maharashtra and SITI Network have also been found by CNI desk. Many of these have happened 4 to 5 times. And now many of these can show more momentum so that they can become good small cap and mid cap. We will continue to serve you in such a way that you can understand the market in a better way.

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(The author of this article is Kishor P Ostwal, CMD, CNI Research Ltd.)

Disclaimer: The market levels and stocks mentioned here are the stocks researched by CNI Research. Be sure to consult your investment advisor before investing. ABPLive.com is not responsible for any kind of loss.