Share Market Update: For the past nine months, we have been hearing statements from America that they are going towards recession. We are constantly hearing about recession. But the truth is that there is enthusiasm in the economy, employment opportunities are not decreasing. Despite raising interest rates by 300 basis points, there is talk of a recession coming in the second half of 2023. One thing is clear from this that when there is despair everywhere, then the next bull run i.e. the market is about to rise. Because if a country is going into recession then its currency should fall. But the dollar continues to show strength.
Even after increasing the interest rates, the flow of cash is not going to stop. Inflation cannot be controlled by monetary policy alone. I am happy to see that those who are investing or trading have started understanding the economy better.
I believe the valuation of Nifty has been accepted at 17100. Has sold $ 35 billion, of which 25 percent is sure to come back sooner or later. Therefore, the Nifty index can rise by 20 percent from here. There may be a new boom in the market. ITC is trading up 50 per cent after staying at Rs 210. Those who sold the stock out of fear lost it. We are seeing the same in BHEL, Mahindra & Mahindra Finance. This was also seen in KVB. It was not going beyond Rs 50. These four stocks were duped by CNI. If you do not have the patience for 2 to 3 years, then even large caps cannot give you money by making money. CNI is now pushing for micro cap.
We have bought stocks on Diwali. In which large cap, small cap and micro cap are included. The microcap we have chosen is the next Small caps would have been made on Diwali. We have included Cera, Vishnu Vip, Sandur, Oriental Aromatics in the report. Arbindo has come from 1200 to 500 level. Delta Corp has declared excellent results. This is a great stock but not for us. We believe in second delta which can go from Rs 2300 to 3000 in 5 years. With our multibagger idea, you can choose between 2 or 3 stocks.
(These are the personal views of the author)
Kishore P Ostwal
CMD, CNI Research