Tata Steel up 4.5% despite loss in Q3.

Bull Market shrugs off bad news and builds upon good news. We had written in our, ‘Making of the Bull market’ points, about this, now we have another proof to strengthen the adage. Q3 results by far in whole is poor for the frontline stocks while the lead is taken by the mid caps to run the market at present into the bullish zone. Tata Steel had its first negative quarter in the last two years. Market takes it lightly and gives thumbs up for the stock with a 4.5% jump. Isn’t it a good confirmation of a bull market?

We can see many analysts coming on board to confirm the bull market now. When people start reading those articles or watch these people on the media & print. They are caught unawares from their sober. What was perceived to be a bear market few days ago suddenly now becomes a bull market. The very same analysts were skeptical about the markets move bringing in all sorts of biases to prove they were correct in calling the market a bear market; this was because they were biased towards bearishness.

Fear of being wrong made them to be more optimistic by bringing one resistance after another as the region to short the markets, while it was doing the opposite side journey. Now since the fort of 5400 is captured, all of them are forced to confirm the bull market.

As these people declare, the market is in the bullish zone, can we approach the market to trade-in new opportunities? Most likely it is not. Why is it so? By the time our sought after analysts woke up to realize the market has changed its direction, big moves have already happened in the stocks that are super strong and have lead the move up. For a market to move from a bear to bull phase it takes time, and in the conversion process, some groups of stocks which are strong move up and add more strength, giving huge returns to the investor who believed in their story. Like it is now, the Cement Industry is super charging with gains. Most of the companies in this group have their EPS ranks above 80 among our tracking list. Stocks from this group like Madras Cements, India Cements, KCP, Shree Cement, etc., has outperformed all the indices and is ranking 3^rd in the Industry group ranking order.

The gains that these companies have made in the present move are:

Stock                          Gains since Jan’12.

KCP                              40.12%

Madras Cements        31.73%

India Cements             36.55%

Shree Cements           10.39%

Most of the stocks in the Cement Industry group have already given out good profits for those who had the gut feel to sense the moves and take positions. Staying on holding to them will give very high returns which late entrants have missed. Since the move is very strong and is likely to continue for some more weeks or months to come, late entrants have a chance to trade into these stocks and take some profit from the left over moves.

Similarly stocks Like ARVIND, MRF etc., have given returns of 36 & 20% respectively. Whereas Nifty has gained close to about 13% from the time it is in long trade since the beginning of this year. It is clearly known from these facts that it is not the front line companies that are leading the bull market now, but the stocks in the mid caps. That too, not the whole universe of stocks is moving in the same direction. There is a selected few, which have given wonderful gains and have real strength in them.

Almost all the stocks that we have mentioned here have been reported either on the site or in our blogs at the time of their entries. We do not get such robust moves every day in the markets, but some quality time with the markets in gaining knowledge about what is happening in the is enough for you to identify, invest and reap rich benefits. Once every 6 months to about a year the markets consolidate or go into intermediate bear phases and give traders tremendous opportunity to make big money in the markets.

All these opportunities are stated well in advance before the rally began in BTT’s BigMoney Channel and Ready to Take Off sections for our readers to benefit and gain from superior moves to reap rich gains beating returns of all the other investment avenues consistently.