+ Indian Stock Market arena is flooded with self-certified analysts who draw up conclusions faster than a news can break. The number of such analysts has drastically reduced compared to Jan’08, thanks to the bear hug, rather thanks to the bear honeymoon, but still there are quite a many. As soon as the news of Govt. releasing 15000 Crs to banks came in there were messages with buy calls as they expected the market to take positive cues from the news. They basically failed to understand that Govt. is giving banks their own money! A message was anyway sent on MFF Free SMS Group and hope you received it on time.
+ It is heartening to note that CITI has escaped dieing a dog’s death, else the CITI would have not let any one sleep! The positive news of $310 Bn (approx) bail out package has moved the Dow above few resistances and hope the move continues. Though the news is great it may bring in some bad news for Indian employees as the company now would definitely lay off employees and cut salaries as a rescue plan. The market has most probably factored the probable events, but still panic reactions cannot be ruled out. We need not worry if these events take place in slow and steady manner.
+ The good news is petroleum minister has announced that the fuel prices may be reduced after the assembly elections going on in the six states. The estimated cut could be around Rs.5/- for petrol and this would bring in great relief from the inflation. Once inflation comes down further, RBI will have more room to cut rates. Hence when the cut in rates are officially announced the market would have something to cheer about.
+ Look at the politics behind fuel prices. If you remember MFF, some days ago (browse through the previous posts) had predicted that the Govt. would announce the decision to benefit in the elections. Why this announcement today? The Prime Minister had earlier announced that the prices would not be cut until the oil companies come into profits. Have they come into profit today?
+ The nearest resistance for Nifty come at 2840 and the nearest support at 2590. We should take cues from Dow today for tomorrow’s trade. As mentioned in earlier posts we should trade between 8000 and 12000 till the next central Govt. is formed. Paid members of Market Fast Food and Investors Arcade went long in a stock today and also we shorted a stock to make some quick bucks. MFF Free Members can slowly buy Axis Bank at cmp 376 to 370 keeping a SL of 344. If profit has to be booked in between the message would be sent on sms group. If it breaks 344 we can see a further cut of Rs.50 on it.