– 110101 – We at VRIDHI Wish you all a VERY Happy, Prosperous & a Profitable New Year 2011 ahead. May the year shower wealth and prosperity in our lives. We at VRIDHI take this opportunity to thank you all for the support, appreciations, suggestions which have made us more confident and professional in approach. Your support is clearly seen from the overwhelming response which we have been receiving for our service MarketFastFood, Thanks once again to one and all.
– Pink papers today are carrying articles that Indian markets have grown/multiplied the investor’s wealth “10 Times in 10 Years” The real bull run in Indian market started somewhere around the year 2000 when the biggest project “The Golden Quadrilateral” was unveiled by the then PM Atal Behari Vajpayee. This project gave the boost to the economy and the world started focusing on India on all areas taking away the monopoly of IT. The result was that the market became more broad based and wealth creation opportunities emerged across the board.
– Markets have actually created this kind of wealth, in many cases individual stocks have created much more than what we are discussing here, but how many Indian Retail Investors actually have participated in this up move? This is a big question mark which very few can answer (infact we believe none can answer), investors who have made big in last decade should be negligible, all other investors have made nothing if you factor in the inflation index.
– The actual wealth has been made mostly by FII’s and few domestic institutions like LIC. Many of our large companies today are no longer Indian by virtue of shareholding pattern. The controlling stakes are with FII’s literally! That’s the saddest part of our bull market. Indian Retail Investors in stock market is just 1.2% of our large population. It would not be wise to fix the blame on them, the actual reason is lack of investing knowledge.
– The media is having a huge impact on our lives today. Every regional channel today has allocated a slot of atleast a hour daily, on Stock Markets. Apart from these we have large number of News Papers and Magazines. All these media coverage is doing lot of good in bringing new investors into the market. We require more such mass media coverage so that the breath of the market increases.
– The Biggest/Top mistake a new entrant commits in the market today is experimenting right away in Futures & Options! F&O is not an investment product, people need to learn that, it is never advisable for a New Retail Investor to enter this segment without even knowing abc of it!
– Any investor if, has made any money, has made only in the Cash segment. FIIs have been big time investors in the Cash market and their stakes in top companies in the country have been ever rising. Retail investors think stock market is money making machine and none of them buy any share thinking he/she is buying a business!
– We at VRIDHI have been always advocating our clients to trade only on cash segment. In most of the cases we have not even activated F&O segment hence our clients are much safer trading only in cash market! We practice what we preach and that’s why our popular product MarketFastFood does not advise clients trading on F&O segment.
– Many of you may be wondering why we are advising investors to trade more on cash at this point of time. The reason is simple we have entered in all New Decade and we firmly believe this decade would deliver more opportunities to investors, more than the previous one though it has made headlines!
– The decade 2011-2020 would be full of energy and growth and anyone really wanting to participate in this growth has to be necessarily in cash market! Hence our advise to all kinds of investors i.e. ST/MT/LT investors is to invest in cash market. We have only one advice for traders in F&O, please follow Technical’s strictly and always maintain the money management principles.
– We in Nov’09 had predicted Sensex levels of 19300-20200 for the year 2010. The prediction has come out absolutely right and the year end close for 2010 for Sensex has been at 20509, few hundred points +/- does not matter, infact as latest untill few days back Sensex was within the mentioned range. To read the Nov’09 article Click Here
– We had mentioned some stock recommendations few days back which we believe should do well in coming times, as and when the market also goes up. To read that article Click Here
– So what’s our 2011 prediction on the index? We are yet again sticking out our neck in predicting, readers need to understand that these are expectations and hence they may or may not be achieved. We expect Sensex to end the year 2011 in the range 23200-24600, a correlating figure for Nifty can come in the range 6980-7390. We expect Sensex will find Short Term support at 18800-18600 and a Medium Term support in a range 17300-17000 (These supports may be shattered if the government collapses). If you carefully note our upper range of the target it-self is hardly 20% and hence 2011 could be a difficult year in picking the right stocks to make money. We will anyhow keep updating on latest views in case our targets are broken decisively.
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