081031

 

– What is Market? Someone had quoted it as “The Difference of Opinion makes a Market” but as of now it looks like very few people are in difference of opinion! Most of the people now feel as if the market has been ruined for ever and hence no point look at it for many years to come. When we were romancing with 21000 no one ever wondered we could also see times like this. 

 

– Media is one of the culprit in doing so. They are now all praising the Great Bear SS who has been regularly putting four digit targets on Sensex every time it dipped few thousand points but then bad luck of this Bear SS (U must have guessed who it is by now) markets bounced back. So what his target of four digit achieved? If even a lunatic makes hundred wrong guesses one may come right so does that mean he is great? The most funny part is even now this bear SS does not recommend to go long! I don’t know if they ever buy anything in their PMS accounts of clients.

– What ever rises to a point which is out of reach of common buyer has to fall and that is what happened with Real Estate prices in US and the resultant effect was sub prime brunt of which is still being felt. Now what happens if the prices fall? Real Estate prices have fallen anywhere between 60% – 80% in US and now see the latest data… Second Hand Home sales have rises by 5.5% in September compared to -2.2% in August, New Home sales have risen 2.7% in September! Not so leveraged people have started taking in the benefit of rock bottom prices by buying new properties and the data further suggests that these are towards using and not investing.

– US market should get some respite from this data and we have seen that over last two trading sessions. FII’s also should look into the valuations in India where in they are at Historical lows. SEBI has permitted promoters to increase stakes in their own companies with easier than before norms, we would definitely see some of them buying into their own stocks thanking the mad market for the bargain it has given them.

– MFF had mentioned 2030 as the upper side for Nifty’s support which should be around 7000 on Sensex. The Sensex has bounced from 7500 approx and lets hopes that’s the bottom we would ever see again. Even if market rallies it would not do anything major and should consolidate between 9000 – 12000 for few months. MFF has been regularly mentioning that nothing major is expected until the defunct UPA Govt is replaced at the centre and a new non Left supported Govt comes in power.

081029 – 1520 Hrs

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