September 24, 2010 4:22 am
I would like to know which large-cap and mid-cap stocks one should buy with long term view if opportunity comes due to market crash?
On large cap, I’m biased towards Reliance because Mukesh comes across as shrewed businessman… does not get on the wrong side of too many politicians.. tends to get along with whoever gets elected in central government. Ofcourse, he is very ambitious, aggressive and alwards dream BIG. History shows that Reliance share holders (over long term) are benefitted well..
In every bull market New Leader emerges… The performers of 2007-2008 rally have underperformed big time in current rally.
If someone has picked R-pack & real-estate during last crash, he is scratching his head as they did not perform as expected. Instead Tata Stocks & financial sector outperformed.
I believe a Stock market crash is like a car accident/crash… One who is at high speed while crash happens will suffer more loss and take more time to recover. while who is slow & steady at time of crash will suffer less damage , so wud be in better position to run in next rally 🙂
Now, identify ur bets only after Crash, who is wouned more and who is healthy 🙂
Yes I see some on technicals as well and I feel as of now that Usha Martin has got good technicals. It is a good time to book some profits in Bharti Airtel as well as it has risen about 40% in about 3 months.
My favourites for long term are
2. Infosys or Tcs
3. HDFC or HDFC Bank
Yes you are correct , a equity investor who is ready for minor bruises and not fatal death should go for large cap oriented funds and stocks 🙂
Will surely answer WITH technical reason after the crash of the market – whenever it does. Just remind me if I forget this space.
You might want to show us some stocks which one can sell right now from technical point 🙂 incase you want
Sure. Right now, no major large cap has shown the sign of weakness. But technical chart shows that prices “will” come down. I can go in detail with technical chart & its interpretation on stock specific or indices, if someone needs that. Out of my watchlist, one must book profit & exit from Jindal Poly Films. It is currently trading around 1000 and it will come down to around 700 in next few days.
Hope it will help you.
In the Large cap category I would like to suggest Bharti Airtel over a long term but I guess there is nothing called a long term in the markets 🙂 You can still try and buying ICICI Bank and PNB Bank both having good fundamentals. Midcap I would suggest Usha Martin. These are just my suggestion and I am sure there is no right or wrong but these are my personal favourites :). Yes I have very small holdings in all four of them. Obv if the markets come down they would also move down but then all of them are fundamentally strong with good backings.
You might want to also mention some basic reasons for your choices ? Usha Martin is not some thing very known 🙂 .
Do you also look at them from technical view point ?
Well Said Manish.
You have distinctively shown the similarity between girls and stocks. Well for the question above, I would like to say that market has seen its ups and downs. Its always to be better with the large cap and well known management like the Tata’s, Ambani’s and Birla’s for longer term rather than betting on a multibagger. Well this can be considered for a conservative equity investor. I know I am taking the word conservative and equity both at the same time contradicting, but this is the way it goes.
Comments, if any.
That would require more deeper analysis on which stocks are most attractive after the crash . we cant look at it and say which one can we choose 🙂 .There are many . Its the situation like you are 15 yrs old, have 10 friends who are girls and potential parter for future and you want to marry one of them after 12 yrs ,you never know the changes which will happen in between and what looks prospective today might not be good for future.
What are others views on this ?
You are right that we will know whether the company is good buy or not only after the crash based on its attractive price. But i think its not a bad idea to have list of good companies stock with great management before the crash, so that once opportunity arises we can cash on it. what do u say?
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