It was an action packed F&O expiry and a one way journey down. There are several interesting observations to be made which may suggest the entire rally from March 09 bottoms may be over.1. The trend line joining the lows from March is broken decisively on weekly and daily basis.2. The FIIs and DIIs were net net on the sidelines for the month of October. Both were almost net zero in terms of money pumped.http://www.bseindia.com/mktlive/market_summ/categorywise_turnover.asp The BSE link from where I got the data.This means that DII turned neutral...
Saturday, 31 October 2009
Saturday, 24 October 2009
The markets hit a high of 5182 on the nifty before closing the week at 4997. This was a very interesting week, and the week that follows will tell us whether the entire rally which started from March is over or just a small dip. There were several differences this week over the previous 7 months.First, the FIIs were huge sellers on last 3 days. They pulled out almost 1500 crores whereas DIIs pulled out 80 crores. I went back and checked. The DIIs have bee net sellers over August, Sept and Oct. In July they were marginal buyers.This means the entire...
Friday, 16 October 2009
It is Mahurat trading time. We have picked up certain stocks which we feel will do if the markets do well.Also, it is a time of caution, as P/E of nifty is around 23. A staggered buying approach would be good.I would also like to thank Lakshmi Ramchandran for all the efforts and encouragement put in to make this presentation a reality.Please check out the presentation here:http://groups.google.co.in/group/nav-files/web/Diwali%20Picks2009v1.0....
Saturday, 10 October 2009
It was a day trader's paradise this week at the bourses as the markets oscillated.Key events were the dumping of Telecom Stocks, Infy results and Reliance bonus announcement of 1:1. Reliance came out with a bonus issue which surprised the markets but there was no reaction from the markets. An intra- day spike of 6 pc and thats it.The markets typically hail a bonus issue which is nothing but a sentiment booster for the Retail. Eventually after a month or so after the bonus announcement you get the stock cheaper. An example of this was the Siemens...
Saturday, 3 October 2009
The Olympics for 2016 have been allotted to Brazil. Brazil has edged out established cities like Tokyo, Chicago ad Madrid.Often, when a country is on its way to becoming a economic superpower, it is reflected in the Sports Arena. By this, I mean consistent performances, not a few flashes in the pan, moments of individual brilliance.Lets take the 1992 Barcelona Olympics. During those games, Soviet Union was at the top with 45 golds followed by USA and Germany. China was just making a small splash in the pool with about 16 golds.In the 2000 Games,...
Thursday, 1 October 2009
The Nifty P/E is at 22.89 as of 01st October.It has exceeded these levels only during the bubble crashes of 2000 and 2008. In 2004, it briefly flirted above this level before falling.We have 2 scenarios now:1. It keeps rising to about 28 creating a bubble like scenario. It would break the previous high or thereabouts and the a mega fall.2. Correct from anywhere here to 5200 zone. Every time it corrects, it comes down to a P/E of 14-16 which would...
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