GAIN TIME ON DIWALI..

Awesome beginning on Diwali day. Usual losing streak made a bye-bye  this time. Perhaps indicative of the change of time now.. Made 11K on a Telco trade today on Diwali. Good that I recovered some spending on the dresses and crackers. Made a decision to invest 50% of my income on stocks and equity with adequate safety for 6 months expenses.

Target to make 2.5Lakhs by next Diwali in F&O and invest 5Lakhs this year in Stocks alone. Lets see where this takes me now.

Expect no major surprise from my company though.Planning to move to AU in the next few months. gotto figure out something that will be more long term given where we are now in our Practice. 

Break time Blog - Vacation's rock on stocks..

Its time for another post - I am relaxing now taking a long deserved break from office. I am using this time to catch up on some reading and spending good time with my sons. Just back from a immunization visit to the doc for the younger one, so my wife is a bit hassled with his crying.

This week I had a chance to seriously look at the Discounted Cash flow model to analyse the value calculations for some of the stocks I own.Noticed some of my realty stocks were quoting near the 2 stage DCF value , while some IT stocks like TCS were quoting 20 times the DCF value in  the current market. Obviously i havent discounted the Long term Debt levels of the Realty companies in a few cases while doing the calculation or else the intrinsic value would have been far lower. Noticed not many of my current stocks were bought at near or no safety to intrinsic value, even one's like LUPIN were bought at near or above the intrinsic value which is a risk but given most of them are momentum stocks with good growth projection i dont anticipate this to be serious to offload at the moment.. However I do see the PE levels currently for most of these stocks hitting the upper circuit and perhaps will plan to offload them before Jan-March timeline. The NIFTY PE levels are currently ~ 21, I dont see any major trigger to sustain rally though there is bound to be some optimism around Diwali timeline before the markets cool off during Nov-Dec timeline.

Till next time - ciao!