morning thoughts...
The markets saw a positive surprise and moved up as intimated.
Technically the markets tends to remain volatile in the coming sessions with no much of fury on either side.
Indian stock markets proved to be the best asset class in 2014. With around 30% returns, the Sensex performed the best since 2009.
However, much of these gains rested on a shaky ground. Instead of a real recovery, what stocks were riding on were market expectations driven by Modi fever and foreign money inflow. It did not take too long for reality to dawn on markets. With corporate earnings showing no signs of recovery and foreign money leaving shores, markets have witnessed a correction in the year till date.
As per an article in Businesstoday, the equity investors have lost around Rs 2.95 trillion this year. The recent sell off on August 24th this year is a stern reminder of vulnerability of the markets to global developments.
However, the losses, just like the gains, were more driven by global factors rather than stock specific fundamentals. As history suggests, stock markets in the long term has been one of the best asset classes. Over the same economic cycles, there have been businesses that have thrived to become that have been wealth compounders. And then there are businesses that could not even survive. It was not the global factors and market sentiments, but business specific fundamentals that differentiated winners from losers. As such, long term investors would do well not to focus too much on the former but follow a bottom up approach of investing in stocks.
Coming to the commodity markets bullions , base metals and energy are likely to be under pressure with some buying at lower levels.
Yesterday's calls sent
Nifty - buy a cmp 7801 sl 7775 targets 7950 - booked at 7935
Bank nifty - buy at cmp 16952 sl 16887 targets 17500 - booked at 17390
Hdil 80 ca - buy at cmp 2.50 sl 1.95 targets 5 - holding
Voltas - buy at cmp 252 sl 249 targets 265 - holding
Tata steel - buy at cmp 201.50 sl 199 targets 212 - holding
The markets saw a positive surprise and moved up as intimated.
Technically the markets tends to remain volatile in the coming sessions with no much of fury on either side.
Indian stock markets proved to be the best asset class in 2014. With around 30% returns, the Sensex performed the best since 2009.
However, much of these gains rested on a shaky ground. Instead of a real recovery, what stocks were riding on were market expectations driven by Modi fever and foreign money inflow. It did not take too long for reality to dawn on markets. With corporate earnings showing no signs of recovery and foreign money leaving shores, markets have witnessed a correction in the year till date.
As per an article in Businesstoday, the equity investors have lost around Rs 2.95 trillion this year. The recent sell off on August 24th this year is a stern reminder of vulnerability of the markets to global developments.
However, the losses, just like the gains, were more driven by global factors rather than stock specific fundamentals. As history suggests, stock markets in the long term has been one of the best asset classes. Over the same economic cycles, there have been businesses that have thrived to become that have been wealth compounders. And then there are businesses that could not even survive. It was not the global factors and market sentiments, but business specific fundamentals that differentiated winners from losers. As such, long term investors would do well not to focus too much on the former but follow a bottom up approach of investing in stocks.
Coming to the commodity markets bullions , base metals and energy are likely to be under pressure with some buying at lower levels.
Yesterday's calls sent
Nifty - buy a cmp 7801 sl 7775 targets 7950 - booked at 7935
Bank nifty - buy at cmp 16952 sl 16887 targets 17500 - booked at 17390
Hdil 80 ca - buy at cmp 2.50 sl 1.95 targets 5 - holding
Voltas - buy at cmp 252 sl 249 targets 265 - holding
Tata steel - buy at cmp 201.50 sl 199 targets 212 - holding
