Weekend Observations 24th Sep 2023

Weekend Observations

RTI For Money, Lillaney

9/24/20232 min read

Top Gainer this week has been KIOCL Ltd. which gave a return of 30.83%. 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 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 - 19 vs 58 last week

New 52 week low - 2 vs 0 last week

Near 52 week high - 240 vs 262 last week

Near 52 week low - 25 vs 18 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 in both the 52 week & near 52 week low have slightly increased from last week which shows increased selling of stocks.

Currently if we see the list 52 week low list it contains 2 companies as given below with my views.

Vedanta - Available at a P/E of less than 10 now and dividend yield of 45%+. If you have a 2-3 year view this might be a good stock to keep on your watchlist and start accumulating on every dip. Remember this is a commodity stock and not a growth stock which means the earnings will fluctuate a lot and so will the stock price. Not for the faint hearted. Your patience will be tested and the news flow might be pretty bad in the coming year which presents an opportunity or it could be a risk. What do you think will happen? What will you do about it ?

Gujarat Gas - 23 P/E. Ignore. Nothing special here.

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

What are your weekend observations?