morning thoughts...
The markets reverted back from the lower levels and achieved our advance nifty targets of 9000 and 20000 on bank nifty with nifty yielding 377 points and bank nifty 1200 points in 1 week.
Technically the markets will now consolidate and remain in a range giving oppurtunity to both long and short traders.
However, we would like to discuss few points here among the one which we would like to mention here is the doubling of corporate earnings and hence their share in GDP from a low of 4% to high of 7% , even as GDP itself is expected to go from below 5% to over 8%. What it fails to take into account is that even as a real improvement is yet to be seen at the ground level and in the corporate earnings, the rise in Sensex over last one year already takes into account a lot of such expected upsides. While positives are already getting reflected, we need to be mindful of the speed breakers that may come in the way of growth. Much of the turn around in the economy has been on account of benign global factors such as oil price decline. Even the softening of inflation is more because of external reasons, something which the Government can not take much credit for. The manufacturing climate in the country does not paint a very positive picture either. And last but not the least, much of the gains in the Sensex are a result of the huge FII inflows in the backdrop of relatively low rate of returns in the developed economy. A reversal in any of these trends could lead to an unfavourable twist in the growth story. And in case that happens, we will not be surprised to see doomsayers coming to the forefront. Except that they will be as unreliable as the cheer leaders are now.
Coming to the commodity markets bullions , base metals and energy will give an oppurtunity to buy on dips and sell on rallies.
Yesterday's calls sent
Double Bumper Pfc 300 ca - buy at cmp 7.30 sl 5 targets 15 - booked at 14.55
Rec - buy at cmp 348 sl 345 targets 365- booked at 361
Idfc - buy at cmp 177 sl 175.50 targets 182- booked at 181.30
Convert 10k into 35k Axis bank 600 ca - buy at cmp 33 sl 27 tar 60 - booked at 57
Nifty - booked at 9015 - long from 8739
Bank Nifty - booked at 20030 - long from 19388
The markets reverted back from the lower levels and achieved our advance nifty targets of 9000 and 20000 on bank nifty with nifty yielding 377 points and bank nifty 1200 points in 1 week.
Technically the markets will now consolidate and remain in a range giving oppurtunity to both long and short traders.
However, we would like to discuss few points here among the one which we would like to mention here is the doubling of corporate earnings and hence their share in GDP from a low of 4% to high of 7% , even as GDP itself is expected to go from below 5% to over 8%. What it fails to take into account is that even as a real improvement is yet to be seen at the ground level and in the corporate earnings, the rise in Sensex over last one year already takes into account a lot of such expected upsides. While positives are already getting reflected, we need to be mindful of the speed breakers that may come in the way of growth. Much of the turn around in the economy has been on account of benign global factors such as oil price decline. Even the softening of inflation is more because of external reasons, something which the Government can not take much credit for. The manufacturing climate in the country does not paint a very positive picture either. And last but not the least, much of the gains in the Sensex are a result of the huge FII inflows in the backdrop of relatively low rate of returns in the developed economy. A reversal in any of these trends could lead to an unfavourable twist in the growth story. And in case that happens, we will not be surprised to see doomsayers coming to the forefront. Except that they will be as unreliable as the cheer leaders are now.
Coming to the commodity markets bullions , base metals and energy will give an oppurtunity to buy on dips and sell on rallies.
Yesterday's calls sent
Double Bumper Pfc 300 ca - buy at cmp 7.30 sl 5 targets 15 - booked at 14.55
Rec - buy at cmp 348 sl 345 targets 365- booked at 361
Idfc - buy at cmp 177 sl 175.50 targets 182- booked at 181.30
Convert 10k into 35k Axis bank 600 ca - buy at cmp 33 sl 27 tar 60 - booked at 57
Nifty - booked at 9015 - long from 8739
Bank Nifty - booked at 20030 - long from 19388
