Tuesday, November 4, 2008

Stay away from these stocks which bounced back 15% to 60% gains in last five days!!!

Despite the past trading week being curtailed by two holidays, some index heavyweights have notched up gains of anywhere between 15 and 58 per cent since last Monday.

In the Nifty basket, Unitech (up 58 per cent), Tata Communications (48 per cent), Hindalco (46 per cent), Ambuja Cement (43 per cent) have been the top gainers in this period.

Commodity stocks, beaten down to rock-bottom valuations in the recent rout, dominate the gainers list, as hope gained ground that prices for key commodities such as aluminium, steel and oil may have already factored in a worst case scenario for the global economy.

Hindalco, Reliance Industries, Sterlite Inds, and SAIL were among the commodity names that figured on the gainers’ list.

None of these stocks are a great invesment pick, one must not get confused by the way they bounced back with potential to create wealth. These stocks will revisit their bottom again, may be sometime sooner or later.

-Sandeep Jain

2 comments:

Anonymous said...

Hi Sandeep,
Can u mention the Rates of each stocks rather than jus mentioning the % alone.

Rgds
VL

HBJ Capital said...

Dear Mr. VL,

Sorry for the delay in response, going forward we will update the CMP of each stocks also. In this case non of the stocks are a great investment scrip as per our analyst team hence here what we mean to say that "inspite of bounce don't run behind these stocks".