Weekend Observations 08th Oct 2023

Weekend Observations

INVESTING

RTI For Money, Dilip Lillaney

10/8/20231 min read

Top Gainer this week has been Edelweiss Financial which gave a return of 29.02%. Stock looks very extended on the charts. Fundamentally too, the stock is not that great. It seems to me that the correction that has been happening for the last few weeks might continue this week for the stocks that have run up too quickly without any significant change in fundamentals or future outlook. But bull markets are driven by liquidity and markets can remain irrational longer than we can remain solvent. So my strategy would be to wait on the sidelines and buy only good companies when there is the next market correction. That could take a while but I would rather be safe than sorry. What’s your plan for the coming week?


New 52 week high - 33 vs 28 last week. Out of these 7 are large cap and 26 mid cap.

New 52 week low - 0 vs 3 last week.

Near 52 week high - 254 vs 266 last week. Out of these 108 are large cap and 146 mid cap.

Near 52 week low - 30 vs 27 last week. Out of these 12 are large cap and 18 mid cap.


If we see the above it shows the trend is mixed.


The 52 week high list of large caps contains 7 companies as given below with my views.


JSW Infra - New listing. Good group. Bad sector. Would wait and watch.

DLF - P/E is 60+. Ignore.

Bajaj Finance - P/E of 40. One of the best companies. Would buy on every decline.

Solar Ind - P/E is around 60. Ignore

TCS - P/E is around 30 and growth of less than 15% CAGR over the last 5 years.

L&T - P/E is around 40 and growth of less than 15% CAGR over the last 5 years.

Suzlon Energy - P/E is 70+. Ignore.


Please consult your financial advisor before investing. The above are just my views.


What are your weekend observations?


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