Aviation stocks are always a nightmare for long term investors,indian aviation sector has never seen a profitable company other than indigo airlines,however it is not listed on bourses. But a close view towards aviation scrips reveal something interesting, they are more cyclical stocks,they crash suddenly,rise again,get hammered in small span of time,this provides an opportunity for short term trading play.The most negative factors for aviation companies is High aviation turbine fuel costs,poor infrastructure, high taxes,as long as these factors play role we cant expect aviation scrips to outperform,But the point here one should consider is due to exit of kingfisher airlines other players have picked kingfishers market share and it would reflect in the other players financial statements. The recent UPA governments move to allow 49% fdi raised curtains for loss making airlines to invite foreign big players to invest in their companies,Till now two deals have come through,one is tata-airasia-telestra and jet-etihad.
The operating margins of airlines were on stress continuously due to weaker rupee,as they need to imports of aviation turbine fuel,apart from this states tax are also heavy,but as rupee seen stabilizing in near term there can be a slight up move in aviation scrips,however things are not going to be better in a hurry.But there is some optimism going around this sector,traditionally air traffic seen picking up in later quarter of the year.Many airlines have recently increased the fares which is taken on a positive note by the market,there are only two options left for investors in airlines sector after crash of kingfisher i.e jet and spice jet,industry says there are speculative investments in jet and spice jet,but taking into consideration recent fdi acceptance and chance of any deal striking with equal probability of increasing fares further provides investor to go for a short term play.
The operating margins of airlines were on stress continuously due to weaker rupee,as they need to imports of aviation turbine fuel,apart from this states tax are also heavy,but as rupee seen stabilizing in near term there can be a slight up move in aviation scrips,however things are not going to be better in a hurry.But there is some optimism going around this sector,traditionally air traffic seen picking up in later quarter of the year.Many airlines have recently increased the fares which is taken on a positive note by the market,there are only two options left for investors in airlines sector after crash of kingfisher i.e jet and spice jet,industry says there are speculative investments in jet and spice jet,but taking into consideration recent fdi acceptance and chance of any deal striking with equal probability of increasing fares further provides investor to go for a short term play.
Hi Hari Sir,
ReplyDeleteCould I make a request to plz divide your calls between those which are strictly intra day and those which are to be bought with 2-3 trading sessions in mind.
Sometimes because of work issues it isn't possible to be online and square off positions at trigger time, as such in the morning itself one can have the liberty of choosing between intraday or short term.
If other people agree , they could acknowledge below too otherwise let's ignore this
Yes sir i do agree,it would be better if you mention whether those calls can be taken as positional it would be helpful
ReplyDeleteRamaswami.
Hari ji please think on above lines.It shall be more useful.
ReplyDeletehi hari sir...will you please suggest me two stocks of cmp around Rs.12 which are extremely bullish for thursday and friday sessions? Thnx sir..
ReplyDeleteHie,am not sure of any Bullish scrip with that price,wil try to give one if i found.Good luck
DeleteHariji..... Even I think it will be useful. You are being so gentle in giving us about 6-7 calls at a time.
ReplyDeleteA few of them hit target within first 30 minutes.
Few are very rigid in the start and suddenly one big high jump towards closing.
The bifurcation will be very useful.
Everyone I think it is unfair on someone who is taking out his valuable time and sharing his expertise at no cost. we should be thankful to him and take what is being offered.
ReplyDeleteno offense but let us all be fair
Hariji, I personally accept what is on offer
God Bless You
Dattha ji rather than we people,you would know what is best for retail particpants,better we would go with that.
ReplyDeleteSANJAY
yes sir you would be better to give which would be better.
ReplyDeleteHie suraj,pradeep,ram,rajan sanjay,kalyan.Thank you everyone for your advice. From now i shal try to seggregate positional from intraday calls. But one issue that hinders me and for which am afraid is about the non individuality of scrips.Yes companies have lost individuality,they are moving with herd(nifty),unfortunately a basket order from a big shot can change market from green to red and vice versa,there are very few companies countable on finger tips which trade irespective of nifty movement, and as we traders enter at different different prices,a basket order or two consecutive bulk deals can make our stoploss hit..where we shall be left with losses,so am afraid to mention any call as positional,to take a call on whether one can convert intarday call into positional,we wud have to wait till last half an hour as stats keep on changing. However from now i shall try to seggregate them. Good luck all.
ReplyDeleteAlright sir, completely understood ur point.
ReplyDeleteI will take my positions in d margin account whatsoever and if busy towards eod shall decide whether to square off or convert to delivery.
Thnx Hari sir for explaining.
Welcom suraj,said that you always have option to convert your intraday to positional by moving your stoploss slightly up so that profits would be reserved.
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