morning thoughts...
The markets traded extremely volatile and saw a steep fall below 8800 levels and bank nifty below 19500 levels.
Technically not much has been changed and the markets will continue to see volatile moves , it was noteworthy that many stocks maintained and remained strong inspite of steep fall in the indices.
As intimated mega astrological changes takes place until march end and such moves will continue throughout.
We have been drawing your attention towards how frothy valuations in the Indian equity markets are a matter of concern despite all the optimism about reforms and economy. But those who wish to believe otherwise will find no lack of counterarguments either. The recent one that we came across was the data on market cap to GDP ratio.
First of all, the data considers the GDP as per the revised standards One must note that the new method used by the Government forecasts GDP growth of 7.4% in FY 15 and suggests last fiscal GDP growth at 6.9%. While this seems a little high for India where triggers are yet to strike, what makes it even more fishy is the fact that the corresponding numbers as per prior methodology were 4.7% and 5.5% .
First of all, the data considers the GDP as per the revised standards One must note that the new method used by the Government forecasts GDP growth of 7.4% in FY 15 and suggests last fiscal GDP growth at 6.9%. While this seems a little high for India where triggers are yet to strike, what makes it even more fishy is the fact that the corresponding numbers as per prior methodology were 4.7% and 5.5% .
Coming to the commodity markets bullions , base metals and energy will remain in a range with dual strategy of buy on dips and sell on rallies.
Yesterday's calls sent
Double Bumper Jindal steel 200 ca - buy at cmp 9.50 sl 7 targets 14 - went 13.80
Sun pharma 1000 ca - buy at cmp 45 sl 39 targets 60 - went 68
Ranbaxy 800 ca - buy at cmp 26.60 sl 21 targets 40 - went 45
United spirits - buy at cmp 3955 sl 3935 targets 4030 - hit sl
Jackpot Sparc - buy at cmp 525 sl 515 targets 560 - went 564
Fii Hul - buy at cmp 947 sl 940 targets 980 - went 984
Icici bank - sell at cmp 342 sl 345 targets 335 - went 334
Dlf - buy at cmp 153 sl 151 targets 158 - hit sl
The markets traded extremely volatile and saw a steep fall below 8800 levels and bank nifty below 19500 levels.
Technically not much has been changed and the markets will continue to see volatile moves , it was noteworthy that many stocks maintained and remained strong inspite of steep fall in the indices.
As intimated mega astrological changes takes place until march end and such moves will continue throughout.
We have been drawing your attention towards how frothy valuations in the Indian equity markets are a matter of concern despite all the optimism about reforms and economy. But those who wish to believe otherwise will find no lack of counterarguments either. The recent one that we came across was the data on market cap to GDP ratio.
First of all, the data considers the GDP as per the revised standards One must note that the new method used by the Government forecasts GDP growth of 7.4% in FY 15 and suggests last fiscal GDP growth at 6.9%. While this seems a little high for India where triggers are yet to strike, what makes it even more fishy is the fact that the corresponding numbers as per prior methodology were 4.7% and 5.5% .
First of all, the data considers the GDP as per the revised standards One must note that the new method used by the Government forecasts GDP growth of 7.4% in FY 15 and suggests last fiscal GDP growth at 6.9%. While this seems a little high for India where triggers are yet to strike, what makes it even more fishy is the fact that the corresponding numbers as per prior methodology were 4.7% and 5.5% .
Coming to the commodity markets bullions , base metals and energy will remain in a range with dual strategy of buy on dips and sell on rallies.
Yesterday's calls sent
Double Bumper Jindal steel 200 ca - buy at cmp 9.50 sl 7 targets 14 - went 13.80
Sun pharma 1000 ca - buy at cmp 45 sl 39 targets 60 - went 68
Ranbaxy 800 ca - buy at cmp 26.60 sl 21 targets 40 - went 45
United spirits - buy at cmp 3955 sl 3935 targets 4030 - hit sl
Jackpot Sparc - buy at cmp 525 sl 515 targets 560 - went 564
Fii Hul - buy at cmp 947 sl 940 targets 980 - went 984
Icici bank - sell at cmp 342 sl 345 targets 335 - went 334
Dlf - buy at cmp 153 sl 151 targets 158 - hit sl
