The market was only slightly better today, that too only towards the end. Why is it that the down looking day also gets back to posting some gain for the day. To confirm that the underlying tone is bullish, please note the following:
Out of the universe of top 200 most traded stocks covered by Business Standard, as many as 20 were at 52W high on 17 Nov 09. Of these 20, as many as 11 were at 2 year high. HDFC, HDFCBANK, HEROHONDA, INFOSYSTCH, M&M, MARUTI, SBIN, and TCS are some of the Nifty stocks that are ready for crossing all time peak. In light of above, is it wrong to see that Nifty is on a bullish path.
We were ready to count as four as possible gains while there were only two in bush about two years back (PE discounting had crossed 27), today when there is two in hand we are not ready to count them as such (PE discounting is only 17 today as per projected earning for the financial year 09-10). I have called it as two in hand because not only the EPS for companies have gone bigger, the companies have added the retained profits for the two years to reserves and deployed them for creating assets for added production.
Hari Om,
Krsna Khandelwal
BIRDINFO Stock Rx - A prescription for stock market
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