Tuesday 10 May 2011

Tuesday 10 may

The market was volatile : 5551-5590 - to 5515 to 5539 (down 11) intra day high low 75.
Sensex intra day high low 200 points 18528-18670 - 18470 and closed @ 18504 (down 24).

Seems the market is struggling to cross the 5620 or 18700 mark - once this is crossed - can expect further 1% rise to 5680 or 18900.

But it seems the downside @ 5450 (down 2% from 5540) seems more likely.

Upside seems capped @ 2% while downside of another 5% seems more likely.

Market to stay away from.

SKSMicro - after falling over 50% from 550 to 250  in the last one week - recovered 10%  to 298.
One wonders whether all the FIIs , George Soros and Narayan Murthy who bought the shares @ IPO around 800 are still invested in this scrip?
Six months back @ the time of IPO,  this scrip was touted as the next superman of Indian stock market ???
From the IPO price of 985 the stock has now fallen over 70% - & this issue was oversubscribed 14 times.
After the IPO the share price touched a peak of over Rs 1400 - so if you are holding this scrip after buying @ peak - you may probably  have to wait another 10 years to get back your investment on this scrip.

There is a lesson to all investors in SKS scrip - once there is any internal feud between the management (as in this case between promoter and CEO) - one should get out of the scrip. At that time one could probably have recovered most of the investment. 

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