Market Outlook (11th Jan 2008)

Hi Friends
As we have been cautioning you from the past 10 days now, the wait finally paid some dividends. I specifically mentioned last week to be cautious particularly in the last 2 days of this week.. and here it comes.. I still believe more is to come and slower it comes the better...The markets ended deep in red after an extremely volatile session. The opening was strong but by the end of the day Sensex was down nearly 600 points from the day's high. Nifty was down nearly 200 points from the day's high. Our call to buy NIFTY 6150 PUT @ 145 was trading arnd 189 at the end. COMPAC INDIA recomended early morning started its buying freeze from today itself. The company has a lot of postive announcements coming backed by strong quarterly numbers. Keep adding the stock 150++ in very short term Long term tgt 250++.
Coming back to the markets, Infosys will rule the markets tomm and its very difficult to predict the markets on a day like this. We are sitting in cash and at the moment would advice boarders to invest 5-10% of their capital in COMPAC India.. for very good returns in short term.
Few other mid cap stocks which are looking good to me at this point of time are ELGI Equipments and Mazda. Keep a watch on these stocks. I would recommend that do not go ahead and invest full fledged in this market... at any cost not more then 25% of ur capital should be invested.

Happy Investing
Investomaniac
JAIDADIKI