In 2017, market gave a wonderful return to its investors. Nifty and Sensex both appreciate more than 20 percent while midcap and smallcap indexes gained more than 50 percent. However, in today trading session, we saw some selling pressure in market. But as a regular practice by mutual funds, it is common to see this selling pressure. Even, it would not be wrong to expect some more selling pressure in market in next few weeks. But overall, future of stock market is great for both short-term and long-term. Flow of funds from domestic investors and mutual funds will continue to increase rapidly which in result have a positive impact.
Reliance ADAG stocks on fire……
Reliance Naval, part of Reliance Infrastructure of ADAG is among the top traded counter of Monday. In last one month, stock has delivered almost 100 percent return. Majority of gain came today when stock rose from almost Rs 50 in earlier morning trade to Rs 69 in the end of trading session.
In last few days, we have seen a great buying in all of the ADAG stocks especially in Rcom. After announcement of New Revival Plan by Rcom and sale of Transmission business by Reliance Infra, ADAG stocks are continuously rising. At present, it would not be wrong to say that this ADAG Group is the most actively traded Group in last 2-3 weeks.
But now after such a marvelous buying in all the ADAG stocks, it is very difficult to predict whether it is a end or it’s just a trailer! Almost one month ago, most of the stocks of ADAG were available to buy at a great discount. Even, I had recommended at that time to buy Reliance Group stocks especially Rcom. And who had followed that advice would now be sitting on a big return.
During the end of December month and start of January, it is very common to see a good buying in selective pockets of the market. It could possible that buying in ADAG stocks is just for this time period. But it is important to note that Group is now focusing on making their Companies Debt-Free as much as they can. All the businesses where they work have great no. of opportunities and potential in long-term. And at present, valuations of ADAG stocks have great free space to see some more great buying in near-term.
Therefore, I think more chances are that we could see a continues great buying in near term. So, if you are a investor and had bought shares at lower levels of any ADAG stock, it could be a great option to hold it for next 1-2 years. Those who are interested to make any fresh position at current levels may try with stoploss. But they should able to handle some losses as volatility in ADAG stocks is very high. And from potential point of view, Reliance Naval, Rcom and Rpower looks best for any investment. All these three have seen a great selling pressure in last many years and therefore these can be the truely game changer.
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