SUCCESSFUL BREAKOUTS IN INDIA

On Jun 12, 2012, Azim premji was quoted in media as “We as a country are working without a leader”. This happened to be the darkness just before the dawn. Now after the smart decision by Indian electorate, bright days are ahead for us. We now have a strong government & a proven leader at the right place. I am very happy that India has finally given Political Breakout out of coalition era and simultaneously our markets also have given a successful Technical Breakout. When RBI will start reducing interest rates Fundamental Breakout will surely happen in near future as Mark Faber has said: "Bull markets are conceived in depths of depression, and are reared on declining interest rates and increasing corporate profits".

So, how an investor can ride this Bullish Wave? I would bet on the most Bullish Sectors poised to out-perform the markets which can simply be identified in the quote – “My government will focus on manufacturing, infrastructure: Modi”. Most Bullish Instruments which may be used for the purpose are: (a) ETFs: INFRABeES, BANKBeES, GS-CPSEETF, Junior BeES. (b) Stocks: L&T, EIL, Ultratech, OrientCement, Gati, TCI, Coal India, NTPC, BoB, Axis Bank, ONGC, RIL. (c) We have switched our mutual funds to Mid-cap MFs & INFRA-funds. Plan is to cash out all within 3 months after NIFTY-PEs cross 25 levels. Investors may paste color printouts of the following charts in their investing diary so that they never lose sight of the bigger picture and make smart investing decisions.