Invest in Steel and… hold for 5 years for 5 fold gains

I have read many books on stock market, met many analysts... so called advisors, people who give tips for others to invest etc.., one thing in common that I have observed is all these authors, advisors and tippers don’t invest in those stocks that they recommend. I have also seen analysts on television whose views change every second hour, they talk about support and resistance but instead of investing on their own strategy they enjoy from the earnings by giving advice to the common man who has lost money in the market and seek their advice and less than 50% a times he is successful. This content below has nothing to do with the analysts or television shows, what caught my fancy was when I saw a show asking people to be away from the steel sector since it will fall further and then I fell back to my astro analysis to see what is the reason for this fall, can I time the market to pick a few good scrip’s and hold for some time.

Steel as a sector is cyclical in nature… this is something we all know, but what makes it cyclical, why does the demand fade out every few years and suddenly there is a sharp increase in demand after some time is something I was not able to find the books of economy that can answer my question.

Let’s first look at our fundamentals of astrology to understand the impact of planets on various sectors, the table below summarizes the same…

     Sun - Public Sector or Precious Metals
     Moon – Oil & Gas, Water Industry and Shipping industries
     Mars - Automobile industry, Mining and Pharmacy sectors
     Mercury – Telecommunication, Textile sector and FMCG
     Venus - Media, Retail and Sugar sector
     Jupiter - Banking and Financial sector
     Saturn - Metal industry and Oil & Gas
     Rahu – IT, ITES, Media, and Electrical sectors
     Ketu - Power and Energy sector, Retail 

Clearly we can infer that Metals is ruled by Saturn and we all are aware of the cyclical nature of Saturn, as Saturn moves thru various signs staying at least 2.5 years in each of them makes a vast impact of this industry.

Now let’s look further, Saturn will stop its retrograde motion in Libra on 8^th July and one can accumulate Metal stocks like Sail, Tata Steel, Hindalco etc... don’t rush to put all your money at one go, the strategy should be to accumulate them slowly over a period of two months and as Saturn becomes straight and reaches it exhalation in Libra 10 degrees this sector will start showing positive signs.

Remember the way these scrip’s fall they have similar potential to raise, these are the high beta stocks , a short term pull back will be clearly visible in the second half of this year but the bad story is not over, you will still get chance to nibble these stocks for some more time … one should go on accumulating from this level onwards for next 6 to 8 months and then hold for coming few years for a multifold gains.

2014 end Saturn will move to Scorpio which is a watery sign and the world know the wonders of Saturn in a watery sign, it will make remarkable journey and start a bull run which will continue till 2018. There will be some corrections when Saturn aspects various planets on its journey in Scorpio zodiac but this will be momentary and the Bull Run in the metal stocks will continue.

Investors can make a wind fall gain investing in this market especially in the metals pack.

Disclaimer: I have started to accumulate SAIL and TATA STEEL from 31^st May onwards and plan to continue to bite this scrip for few more weeks. SAIL between 56 and 40, Tata Steel between 300 and 225 and hold for next five years for a target of 270 in Sail Steel and 1100 for Tata Steel.