Markets: Is a top in place or can we still hit new highs?

It was a turbulent and truncated week which saw a brutal sell-off. By Friday afternoon, the carnage had abated. The question is going ahead is it buy on dips or sell on rallies? Let attempt to see the both scenarios. I think 2 scenarios are clearly possible now and we are at the inflection point:Bullish Case:1. As shown in the image the trend line draw joining lows from August have held.2. The government is having huge PSU divestment in Feb. They...

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Markets: What to expect now?

The last 2 days of the week were pretty bruising and we had a good amount of fall. The fall leads us to question , is the move just corrective or we are beginnig a fresh round of fall.Points to consider:1. FIIs have sold 3300 crores in last 3 days and DII have bought 2500 crores. Obviously attempts to hold up the markets.2. The rally which began from 4944 to 5310 lasted from 21/12 to 06/01.9 days for up move and the down move has taken 12 days. This...

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What do the Markets hold for us?

The New Year has begun well. The foreign institutions have poured in 3500 crores and the domestic institutions have poured in 4500 crores. On days when FIIs are major sellers, the domestic funds step in a big way. Do you know why?The Government is offloading almost 20000 crores of shares in the next few weeks before the budget. This includes the NTPC divestment which will net almost 9000 crores. Its in the government's interest to keep the market propped up. If no major upheaval occurs then the government will ensure that there are no sharp falls.The...

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What Mr Bajaj Needs?

Last week, we say what Mr Bajaj wanted to live a happy and contented life. Now, this week lets look at what he really needs. Often what you want and what you need to be successful are completely different. If we are able to crack Mr Bajaj's wants and needs we can be successful stock pickers.India is a country which is woefully inadequate in terms of infrastructure. We takes ages to build good roads, flyovers and sea-links. India needs a lot of new roads and highways. The Golden Quadrilateral was just a start. As Kamal Nath, our Roads Ministers...

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The Key to Stock Picking in 2010:What Mr Bajaj Wants?

Its always a real challenge to pick out the right stocks. 2010 more than anytime else would be a stock pickers markets. With the Sensex giving about 80% Returns in 2009, not all stocks will rise in 2010. So, how do we identify the winners for 2010. The Key lies in identifying what Mr Bajaj Wants?Who is Mr Bajaj?He is a young Indian Male in his early 30s employed in one of the Great Indian Back offices making about 12-15 lakhs a year. He is married with a kid.So, now where would Mr Bajaj spend his hard earned salary?It would firstly be on Roti,...

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