So market still stares at 9000/- levels and our earlier targets of 9400-9600 are still intact.
However, again the mid cap and small cap stocks are hitting roughs and whenever stocks like Lycos starts hitting upper circuit we get skeptical. Stocks like Delta corp are up 70 % from Demonetisation and Brexit low. How come they are commanding such valuations, and then stories about Escort hitting ten times in four years. Some of the stocks which are in the trash (Read Shit category ) are just going up and up and that is the first signal of a highly dangerous place. Today , Someone told that he has subscribed to DMART IPO and I should also, With all due respect to Dmart IPO and RK Damani , when some XYZ tell you to invest in stocks its time to call quits.And then someone had a long article “why this time is different …” we have laughed out loud and we are done.
So again having speculative bet, Caps ,We have started booking profits .. have sold partial shares of Adani Enterprise, Rain Industries, Tata Global, Escorts etc …some otheCaps,this was a rewarding journey with all these stocks but the time has come to say good buy. So sitting on 10% cash as of now, going to increase in coming days.
With this dilemma and at an important junction of Dmart IPO, Elections etc etc. We believe we don’t have that risk appetite and would be increasing our cash levels.
The top three holdings remain Intact that is Westlife, Jubilant food works, and Tata Motors .. if the speculation goes well we will be deploying all the cash in TAT Motors plus 30% in what soever stock goes down to our interensic level .
So , we are slowly going out and we belive we will be having better levels to enter.
“You’re looking for a mispriced gamble. That’s what investing is. And you have to know enough to know whether the gamble is mispriced. That’s value investing.”