MFF – 081210 – 20:48 Hrs

+ Some SMSes were received seeking opinion about the assembly election results and their impact on Indian Equities. We will discuss them from stock markets point of view in this write up. Those wishing to communicate with MFF through SMS mode can do it on +91-98410-36524. Use this number only for SMS.

 

+ Finally we saw decent FII net buy figure on Monday and that news coupled with the RBI push + other Govt. actions discussed in previous post helped the markets surge today. If we note closely this is not just India phenomenon as other Asian markets too have participated in the recent up move. The rate cut and other factors helped the Indian stock market to attract some money. Iam stressing on the rate cut push, as the rally seen today are in the sectors, which are interest rate sensitive.

 

+ The other news, which has boosted sentiments, is that of LIC. LIC has announced that they would be investing almost 30000 Crs in secondary market and in preference shares of companies. This rally can also be attributed to the likely decline in inflation figures (already discussed in earlier post) to be announced tomorrow i.e. Thursday.

 

+ All these short term news has propped up the market but MFF still expects it to trade within the large range mentioned many times. The present move is only taking the Sensex only from over sold levels to some decent levels. Even if the Sensex trades at the upper level of the mentioned range, it would still be undervalued and that trend would continue until a new Govt. is formed at the centre.

 

+ On the recent election results: BJP and Congress may have won 2 states each (BJP has no presence in Mizoram hence it can be avoided) but infact that does not call for celebration for either. From stock market point of view it would have been better had either of them have sweeped the states atleast 3-1 if not 4-0. The present trend shows that people are still undecided and that can lead to a hung parliament in Lok Sabha polls. The current situation is only going to strengthen the hands of regional parties, which is not good at all for overall economy. India needs a strong Govt. that can deal with Terror Countries like Pakistan. “Mughalistan” is the hidden agenda of Pakistan and Bangladesh. I was shocked to read about the plan. Read it on http://myindiatalks.blogspot.com/2008/12/pakistan-bangladesh-plan-mughalistan-to.html the article may shock you as well.

 

+ Hope everyone got the call on DLF today through sms group. It really worked well. Nifty’s immediate resistance comes at 2940 and the upper level of the range lies at 3240 – 3360. Let us wait and see if Dow can break its resistance today, which will make Indian markets trend clearer going forward. Please post in your comments so that we can improve and provide you with better analysis. Click the comments link.

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2 thoughts on “MFF – 081210 – 20:48 Hrs

  1. Dear Mr.Vivek
    at the outset let me thanks for the opportunity to read ur writeups.very useful for people who invest in stcoks keep it up
    regds
    sivakumar

    Like

  2. Dear Sir,

    Every time I visit MFF website I find something new and something interesting to read. I admire your work and the articles you post are of immense help.

    I sometime find your views very different from the rest which at first reading look awkward but I have noticed with time you emerge out to be correct infact. I wish you best of luck and do continue your good work.

    I intend to join your paid service for markets and also need a financial plan to be drafted, would be visiting Chennai next week. Will ring you as soon as I land there.

    Anand Sharma

    Like

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