Monday, 25 July 2016
Paper Sector up next
In market cycles it is often seen that the four dogs of market: Sugar, Fertilizer, Drilling/Offshore/Shipping, Paper move one after another or altogether and the Paper would be the last in the cycle which would mean short/mid term bullishness of market is over (what is technically called a TOP).
Sugar up tick has been done, Fertilizer somewhat moved, Drilling/Offshore started today, Paper seems to have started now.
In paper, valuation wise cheap names look like: Star Paper, Kuantum Paper(BSE), Nirvikara (not profitable but dirt cheap mcap, Damani ji invested).
The run in paper will not be as much as Sugar at all and should be capped at about 20-40% returns from CMP at max.