Weekend Observations 17th Sep 2023

Weekend Observations

RTI For Money, Lillaney

9/17/20232 min read

Top Gainer this week has been ITI Ltd. which gave a return of 57.93%. Stock looks very extended on the charts. Fundamentally too, the stock is not that great. It seems to me that the correction that happened last week especially in the PSU stocks 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 - 58 vs 85 last week

New 52 week low - 0 vs 0 last week

Near 52 week high - 262 vs 312 last week

Near 52 week low - 18 vs 17 last week

If we see the above lists it shows that lesser stocks are hitting 52 week highs and near 52 week highs which shows a slight slowing in the bull market which can also be called a consolidation due to profit booking after the quick run up.

If we see the low lists the stocks near 52 week low have slightly increased from last week which shows increased selling of stocks. Currently if we see the list it contains 8 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 - 23 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.

Pidilite - 90+ P/E. Owns well known brands like Fevicol. Can be bought on dips.

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

What are your weekend observations?