morning thoughts...
The markets took the pattern illustrated and closed positive in the last session with individual stocks inching up.
A Sensex churn of 60% from 1992 to 2002 indicates that about 18 companies were ejected from the 30 stock index (18/30=60%) during that period. Even a decade after that (i.e 2002-2012) the churn figure stood at 53%.
This is considerably higher than other indices and also the overall average.
Considering high churn witnessed in the last 2 decades many wonder how will the Sensex look 10 years from now? Will the current constituents hold steady or will they be subject to re-shuffling as has been the case in the past?
With Modi government set to meaningfully change the structure of the economy over the next decade, we won't be surprised if the past churn history remains intact. Industry wide changes can also impact churn. For instance, considering the e-commerce boom one cannot rule out an index addition from this space if any of these companies plan to list. Renewed focus on solar power, defence etc also throws up opportunities for new additions.
While it may be too early to predict such changes, it is quite evident that index constituents are in for a massive change over the next decade.
Technically the markets ought to be volatile with two side movement giving oppurtunity to both long and short traders.
However one needs to be quick in their trades as movements will be fast .
Mid cap IT , banks and finance looks good for short term
Coming to the commodity markets bullions , base metals and energy are likely to trade positive with volatility in coming sessions.
www.astroeyes.blogspot.in
Yesterday's calls sent
Gold Mcx - sell at cmp 27250 sl 27300 tar 27100 - booked at 27129
Crude Mcx -buy at cmp 3819 sl 3805 tar 3870 - booked at 3860
Bank nifty - buy at cmp 18389 sl 18300 tar 18550 - holding
Btst Voltas- buy at cmp 297 sl 295 tar 305 - holding
Hexaware - buy at cmp 273 sl 271 tar 280 - went 281
Axis bank 580 ca - buy at cmp 6 sl 4.50 tar 9 - holding
Double bumper Hexaware - buy at cmp 2.90 sl 2 tar 6 - holding
The markets took the pattern illustrated and closed positive in the last session with individual stocks inching up.
A Sensex churn of 60% from 1992 to 2002 indicates that about 18 companies were ejected from the 30 stock index (18/30=60%) during that period. Even a decade after that (i.e 2002-2012) the churn figure stood at 53%.
This is considerably higher than other indices and also the overall average.
Considering high churn witnessed in the last 2 decades many wonder how will the Sensex look 10 years from now? Will the current constituents hold steady or will they be subject to re-shuffling as has been the case in the past?
With Modi government set to meaningfully change the structure of the economy over the next decade, we won't be surprised if the past churn history remains intact. Industry wide changes can also impact churn. For instance, considering the e-commerce boom one cannot rule out an index addition from this space if any of these companies plan to list. Renewed focus on solar power, defence etc also throws up opportunities for new additions.
While it may be too early to predict such changes, it is quite evident that index constituents are in for a massive change over the next decade.
Technically the markets ought to be volatile with two side movement giving oppurtunity to both long and short traders.
However one needs to be quick in their trades as movements will be fast .
Mid cap IT , banks and finance looks good for short term
Coming to the commodity markets bullions , base metals and energy are likely to trade positive with volatility in coming sessions.
www.astroeyes.blogspot.in
Yesterday's calls sent
Gold Mcx - sell at cmp 27250 sl 27300 tar 27100 - booked at 27129
Crude Mcx -buy at cmp 3819 sl 3805 tar 3870 - booked at 3860
Bank nifty - buy at cmp 18389 sl 18300 tar 18550 - holding
Btst Voltas- buy at cmp 297 sl 295 tar 305 - holding
Hexaware - buy at cmp 273 sl 271 tar 280 - went 281
Axis bank 580 ca - buy at cmp 6 sl 4.50 tar 9 - holding
Double bumper Hexaware - buy at cmp 2.90 sl 2 tar 6 - holding
