We are as predicted, trading in range past many months. Various events which markets keep awaiting for have been passing by. The next thing would be the financial results both 4th quarterly and the yearly, keeping in view the advance tax numbers it’s more likely that the results would be satisfactory and the index is already reflecting that. FII’s have been buyers again in the recent rally and the domestic institutions have been booking profits, which at this point of time looks sensible.
We have just three more trading sessions for the financial year to get over. Retail investors at this point of time can wait for three more days to book profits if any, and should try selling the holdings where there may be some loss. The scrip’s sold will reduce the tax liability and the same can be bought the next day or three days later. The tax slab for the financial year will be just 10% from income 1.6L to 5L and hence it’s advisable to book profits in the next financial year.
This is only a small part of financial planning which a CERTIFIED FINANCIAL PLANNERCM may advise his or her clients. Financial Literacy is yet to catch up with public in India, not just public, infact only a small portion of even the investing public is financially literate! We at VRIDHI Institute of Financial Services are doing our best to train as many people as possible to help them reach their goals.
Last time when we spoke about markets we had said that a big resistance lies at 17700 – 18000 on Sensex which needs to be decisively broken so as to test 19300 – 20200 by Dec’2010 The market tried to cross 17700 but then fell down and tested the lower supports. Supported by budget and the liquidity flows we are almost at that level again. Let’s see if we can be firm in breaking the resistance this time.
The money flowing into Indian market inspite of high inflation, high levels of sovereign debt and so many other problems. This is since the visible growth in the global economies after China is only in India. Hence all possibilities that we may cross the 18000 mark on Sensex supported by FII money, but investors need to remain cautious.
PIGS countries are not out of woods. EU may underplay the risks attached with it but we need to take these statements with a pinch of salt. PIGS countries as such are not too big to pose a serious threat but they can destroy the sentiments of global markets like what we saw in Jan’10 hence me may still trade in range until a clear indication on monsoons emerge. We need extremely favorable monsoon this time on back of the spiraling food inflation. Sharad Pawar may say it will come down soon, he has been telling this since long and his soon never comes! He needs now to work as an agri minister and not as cricket minister.
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Disclaimer: Investing in Equity & other Similar markets can be risky. The recommendations and views mentioned are based on certain expectation’s which may or may not occur. The author thereby, will not be Liable for any loss incurred, monetary or otherwise. Seeking personal advice from your Financial Planner is recommended before acting on any of the substance given herein.