Skip to main content

Nifty Next Week

Nifty opened gap up as expected. Nikkie not only recovered but was in positive territory from yesterdays levels. This is simply because there are set norms in the market where some or other investors come as value buyers. 

In India this is just impossible as there is cash settlement. Even if I have Rs 10000 crs today for investment in equity I cannot invest in equity for the simple reason there cannot be fair return on my investments in India unless I am part of the cartel either bear or bull. Hence genuine cash rich straight forward investors will never invest in Indian markets in current scenario where stock prices fluctuate 30 to 50% just for the settlement issues.

I had mentioned when Wockhardt was at Rs 1900 to stay away from this stock as any downgrade can wipe off your 50% of investment in no time. See what happened...? From high of Rs 2100 low of Rs 1060 on the FDI export ban. Now from hereon Wockhardt will rise again to Rs 1500 and 1600 from there again selling will start. Very soon Wockhardt will come in F and O. Same fate will happen with many high priced stocks.

Nifty ready to test 6300 soon for sure. Rate cut cycle turning positive on lower inflation. IPL scam will allow Govt to differ election till schedule which means more reforms before election hence Nifty has to be at new high.

Nobody really made big gains due to lack of direction in Nifty from 5490 till 6225 and they gone long only above 6130 but could not cash and stuck on long side. We sensed and informed you. Nifty crashed to 5950 as expected. Now nobody can buy due to MTM considerations and margin calls. Settlement pain there. Once this is over V shape recovery will take Nifty back to 6250 and on rate cut next month we will see Nifty crossing 6300.

We share our views yet advise to stay away from F O trades due to strong price movements. Thanks to cash settlement. At the same time those who play delivery without over leveraging will make good bucks on our calls. You can see our strike rate on the home page of our website. This is consistent. Therefore if you apply proper techniques to beat the pitfalls of current system you can still make profits.

Next 4 sessions will be volatile but there will be huge rally also for rolling positions. Now keeping short open will be even dangerous for operators. This conviction can also allow you to go long in stocks you prefer

Comments

Post a Comment

Popular posts from this blog

Wizard of Dalal Street: Govind Parikh's investment mantra

Wizard of Dalal Street: Govind Parikh's investment mantra Govind Parikh of Govind Parikh Securities says selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says I like to buy things in a bad market. Additionally, don't look current cash flow, concentrate on future cash flows — that is what  I look at," says Govind Parikh of Govind Parikh Securities. He advises investors to buy good quality stocks when the market crashes. While sharing his investment philosophy with ace investor Ramesh Damani, on the Wizards of Dalal Street, Parikh says management integrity is very important when deciding which stock to bet on. He tells investors not to buy stocks impulsively. According to him, selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says. He al
2 comments
Read more
LIC IPO Shorts  The largest market capitalization in the making. The govt selling 5 percent stake...... The cuttoff price 2100 Listing price 3000 or more shall be included in the nifty Pro Large base of policies Large Market Share Cons Decling market share viz viz private companies higher cost insurance policies Bottom line can apply for LIC IPO for listing gains..... For More do have a look at the Link Below https://www.youtube.com/watch?v=VPGp5V1ecDM  
Post a Comment
Read more

IT giants beat the sTREET

  and HCL Technologies, to do an encore in their December 2013 quarter earnings. All three companies also exuded confidence about the future demand environment. N Chandrasekaran, chief executive officer & managing director of TCS, said he believed next year would be a stronger one than 2013-14, as customers executed their business plans in a relatively stable environment. HCL Technologies Chief Financial Officer Anil Chanana said the deal pipeline looked significantly better. “We won 15 large deals in this quarter — about half of them in the IMS (infrastructure management services) space. We remain confident of the growth ahead as client budgets remain stable”. Infosys had also improved its revenue guidance for the financial year from 9-10 per cent to 11.5-12 per cent. For the December 2013 quarter, TCS’ revenues grew 32.5 per cent to Rs 21,294 crore and net profit stood at Rs 5,314 crore, up 49.6 per cent from that in the year-ago period. For Infosys and HCL T
Post a Comment
Read more