Weekend Observations - 10th Sep 2023

Weekend Observations


RTI For Money, Lillaney

9/10/20232 min read

Top Gainer this week has been MMTC which gave a return of 49.49%. Stock looks very good on the charts with it being near its high and the volumes being good as well. Fundamentally the EPS was very bad in the last quarter (Mar-23) and the June quarter results have still not been declared. The company website is one of the worst that I have seen and it seems to me that we are due for a correction when the top gainers for the last 2 weeks have been giving 40% returns which the best companies sometimes do not give for years. 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 - 85 vs 111 last week

New 52 week low - 0 vs 0 last week

Near 52 week high - 312 vs 238 last week

Near 52 week low - 17 vs 26 last week

If we see the above lists it shows that lesser stocks are hitting 52 week highs and more are near their 52 week highs which shows a slight slowing in the near 52 week highs converting into the 52 week high list. Would be interesting to see how the coming week pans out.

If we see the low lists the stocks near 52 week low have reduced from last week which shows increased demand of stocks near lows. Currently if we see the list it contains 7 large caps as given below with my views.

Vedanta - Available at a P/E of 10 and dividend yield of 40%+. Buy on dips?

Adani Gas - 100+ P/E. Ignore.

HUL - 50+ P/E. Stable FMCG company. Can be bought on dips.

UPL - 16 P/E. Reasonably priced but don’t like the business that much.

Gujarat Gas - 24 P/E. Ignore. 2nd company from the gas group. Anything wrong there?

Adani Wilmar - 100+ P/E. Ignore. 2nd company from Adani group. Hindenburg overhang?

Kotak Bank - 22 P/E. One of the best banks fundamentally. Can be bought on dips.

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

What are your weekend observations?