DOW JONES MAKES A NEW HIGH....WILL WE FOLLOW SUIT?

"INDIA INC'S TOP GUNS MAY POST 45% RISE IN Q3 NET" ...reads the front page of today's Economic Times.

Well, the mathematics here is simple.Last year, the quarter Oct-Dec 2008 followed the collapse of Lehmann Brothers!! It was by far one of the worst quarters for Indian Companies in recent history. The BSE 500 companies posted a Net Profit of Rs.35,000 crores. In the quarter that has gone by ie Sep 2009 the BSE 500 companies have posted a Net Profit of Rs.51,000 crores.

So even if we maintain the same figures we shall be up 45%!!! And with the October IIP numbers and the Finance Ministers revised estimates of the GDP to 8-9% in the next 2-3 years, that doesn't seem so difficult.

Fundamentals for now are pointing to a northward journey!

TECHNICAL PERSPECTIVE :

Expect Nifty to expire around 5200 for this expiry.Metals are cement have seen the highest rollover of positions so far in this expiry. Sugars have seen the lowest.

If Nifty has to head higher from here sectors like FMCG and Healthcare have to perform.

SECTOR TO WATCH : HEALTHCARE

WHY?

Japan aims to raise gross domestic product to more than 650 trillion yen ($7.1 trillion) by 2020 from the current 500 trillion yen by expanding environmental and health-care industries, the Asahi newspaper said......Bloomberg news.

A measure tracking health-care stocks gained 1.5 percent today, the second biggest among the CSI 300’s 10 industry groups……Bloomberg news!

Dec. 24 (Bloomberg) -- Landmark legislation that would make the broadest changes to the U.S. health-care system in decades is poised to pass the Senate today, putting President Barack Obama’s top legislative priority a step closer to reality. The 10-year, $871 billion measure is designed to cover 31 million uninsured Americans, curb medical expenditures and place new restrictions on insurers……Bloomberg news.

STOCK TO WATCH : FORTIS HEALTHCARE

 Buy at current market levels and add at every dip. Target 155-160 in the short term. Medium term investors can hold for better returns!