Stock Ideas

[bull]

Due to the rising inflation, increasing bank interest rates and ofcourse the already high property rates (which are soon to be corrected) the construction company stocks have had a complete steep fall in a week.

i personally feel that this is just a temporary phase. the rates of the property can just be corected to certain extent and for limited period of time. at the end of the day and after a period of time - property rates will be on higher side only. its like GOLD - someday its Rs 8800 and some days its Rs 9600 but after 1.5 - 2 yrs of time the rate of GOLD wil be more than 10 - 11 k only and not below 8k.

my best bet are Akruti, Parsvnath & Sobha developers with a 6 - 12 month holding capacity.

we should consider the fact that this scrips have fallen due to other factors like inflation, overheating of property rates, budget etc and NOT due to companies bad perfomance. the companies are good and perfoming well and are bound to give returns in due time.

i was thinking - is it the right time to accumalate this scrips at such lower prices ??

[Ideas]

Hi Bull
In any case we are of the opinion that one should stay away from this sector there is every possibility that stocks you listed are going to come down furthur for reasons better known to you.
You have put in a very positive argument but we are of the opinion that the sector is not bottomed out yet, the scrips you listed are good performers in their individual capacity but the sector out look is not encouraging six to twelve month is too short time to expect any upturn.
Sector switch would be a good solution Gujarat NRE seems to be a value pick at this time

[vijaythanvi]

Dear Bull and Ideas,

You both are right.
Bulls suggested those cos established but still Market will recognise them time to come becuase market see their fundamental track own their way like Rel Petro very strong Co but now it is moving up after 1 Yr when co recorded some fundamental.

I agree with bull that Property and Infra Structure sector is good and same time I am agree with Ideas that we should see when this sector is going to rebound then we should enter.

In this sector lot of old and good fundamental co are exisiting like Era Const, Hind Const, Nagarajun Const and IVRCL Infra etc.

As Bull told if you can hold then I think this sector is promising only we should take littile caution till budget, if budget gives some good policies and direction for this sector I think Property and Infra Stru will again boom.

[Shimlaa]

Excellent observation by the experts this really saved me from buying Construction stocks today I love this site and the discussion put up by vijjay goodluck guys keep up the good work

[vijaythanvi]

Thanks Guest (Shimlla)

For your appreciation.

Our main aim on this board is discuss our best knowledge and experience to benefit each others.

We invite you also you to register on this board and put your experience and valuable thoughts to benefit us.

As you wrote that today you were going to buy but you didn't.

I want to tell now market is correcting itself with so many factors, like Interest rates hike,Inflation hike and most valuable event Budget. So my thinking that if you are investor then wait for Budget and when market stablize after budget (becuase now a days market is so voilate) start to pick good value buying.

When everybody is selling try to buy good fundamental shares in installment.

For expample if you want to buy 500 shares, start to buy 100 then accumulate as when market falls sharply by this way you can accumulate your favourite stock but keep in mind that share is going down on profit booking if share goes down (whether it so strong fundamental) his fundamental crisis then don't try to buy that and never accumulate unless that share comes back above his moving average price at least last 60-100 days.

In construction & Infra struct there is Era Const is good pick at 380-390 (now it is trading at 436). I mentioned price 380-390 becuase that is the lowest support for this stock where we feel comfortable in this stock to pick. Like wise so many co are there Hindustan Const, Madhucon Project and Gammon India etc.

This is just my observation for Era Const becuase I am follwing this stock since last 2 years.

You are the investor and trader so make deep research yourself and take decsion, don't go immediately any advice,tip or suggestion.

Best of luck and keep continue post your advice thoughts etc..welcome

[bull]