JULY SERIES

Market continues to rise as expected. The rise should continue for at least a fortnight. Petrol price hike will not affect the rise in the short term. In fact, HPCL, BPCL and IOC should rise due to rerating. Long term investors should consider buying these shares as these companies will never make losses due to decontrol and therefore should command better valuations. Insecticides continues to rise to 220 and is expected to do better. Astral polytechnic is a good buy at 257. A pvc pipe manufacturer trading at a low PE and also had given a breakout on Thursday.

MIDCAPS TO OUTPERFORM

As expected, Insecticides outperformed the market and flared upto 190. Keep buying at every correction. However, Nifty could not touch 5300 so far. The market undertone is bullish and Nifty will touch 5300 shortly. I believe that mid caps should now outperform the large caps. Some good buys are Nagarjuna Construction, Mundra port, United Spirits and United Phosphorus.

Market in June

As expected, stability is returning to market after the fall in May. Nifty should rise to around 5300 levels by 10th of June. Maruti, Nagarjuna Construction and Insecticides are good picks. Insecticides can be the among the top performing stock for couple of years. Buy for long term.