081026 – 2009 Hrs


Wish U all a Very Happy Deepavali, May Goddess Laxmi smiles and showers us with wealth in coming year.

– The pain which we are witnessing would be remembered by generations. It would not be easy to forget the fall all our lives. I, in my Eight+ years of experience in Equity Markets have seen many falls and rises be it Dot Com bust or Ketan Parikh, what not? But this is the biggest blow ever witnessed. The only positive one can imagine out of the fall is that it has polished people to such a extent that they can be better people in the market.

– Most of the selling came on Friday after the announcement by RBI that there are no policy decisions taken nor is there any change on the interest rates front. RBI should have cut lending rates atleast by 0.25% to boost the confidence in the market, but it ended up saying inflation remains a concern. Inflation is not the main concern now its the confidence which requires to be brought back into the system. This is one side of the story the other side is most of the selling came again by the FII’s hence even if market would have increased on a rate cut it is FII’s who would have got better rates for offloading their shares. Hence the rates are lower now and hence we would get better rates if interest rates come down now.

– FII’s pumped in around $15 Bn in 2007 and this year till date have sold around $12 Bn hence assuming they sell all there purchases of last year, the levels which prop up looks horrifying. Technicals show clear target for Dow at 7550 – 7260 and for Nifty at 2030 – 1840 which means we should land and take support at 7000 on Sensex and MFF sincerely feels that that should be the targets in worst case scenario.

– Many people call and send emails daily and the grief in investors voices is clearly visible though not told out by them. Investors felt there’s no end to the bull market in Jan and today they feel there’s no end to the bear markets. Markets turn when people loose hope and its time people start committing money for atleast 3 years time horizon.

– MFF has been regularly mentioning that Govt can do wonders if they wish so but its clearly evident that nothing is being done. Why has the short selling not been banned temporarily till date even after erosion of 80% of investors wealth? The channels are behaving like cartoon networks for business community by preaching that banning short selling would send wrong signals. When Futures in commodities can be banned in orders to stop increasing prices of commodities whats wrong in banning short selling in order to save eroding portfolios of investors?

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