MFF – 110202 – 00:15 Hrs

– This is one of the worst market we are seeing in past many years. Not because we have fallen 3000 points from the Diwali high of 21004 but because we are underperforming when most of the global markets are stable and have been moving up almost consistently. We remember mentioning a month back that that Dow should touch 12000-12200 levels very soon and it did it two days before and saw a correction for one day and is again at 12000+ right now.

– FII’s have been continuous sellers as they see that Indian administration is going through a state of total decision paralysis. Nothing much is happening in the country that can repose confidence among the investors that India provides the best growth play in the years to come. One positive news which we heard after a long time is that India’s biggest FDI POSCO has been cleared finally by the MoEF yesterday.

– India at this point of time is decoupled with rest of the world in all aspects. We are outperforming the world in all aspects, but totally in wrong and reverse direction!

1. Indian leaders are setting higher and higher bench marks in every new case of corruption.

2. The so called economists are not able to do anything about the spiraling price rise of food articles.

3. Interest rates are going up making everything costly for a common man like us. With the little economics I know, food inflation can’t be controlled by hiking interest rates!

4. Infra space is totally in doldrums. The sector requires a major boost and push if India wishes to grow at 9%+ GDP growth.

5. The culpable and corrupt have realized that nothing’s going to happen to them by mere statements like “No One Will be Spared”

6. The rich are getting richer and the poor are getting poorer. The middle class like us is just getting grinded in the mixer called Inflation! Almost everything is getting farer from the reach of middle class people, like us.

A small country like Egypt can wake up the silent administration by a “one million march” but India has more than a billion population, but most resilient one, thus being taken for a ride!

– Valuations have started looking cheap. After the POSCO approval the markets should have seen a net inflow of funds, after all it’s the largest FDI approval of all times. Mutual Funds are being smart this time! They have been buying in this fall.

– A falling market like the present one makes the bulls powerless and thus the bears just rule them. No positive news is taken in the right stride. India is not very matured when it comes to investing and hence FIIs play havoc in the F&O segment. We can bet that if you ban the F&O segment, the fall will be arrested immediately! We in association of Madras Stock Exchange (MSE), Bombay Stock Exchange (BSE) & National Stock Exchange (NSE) have been doing lots of programs in rural areas of our state so as to create awareness among the investors.

– F&O with delivery settlements have been introduced by the BSE today. Hope this gets popular among investors as it can curtail the volatility to a very large extent. Most of the new investors (actually most are traders) we interact with don’t even know why they are into the markets and how they can really create wealth from the market. It’s a long drawn process and we are doing our little bit possible.

– We last time had predicted that the second support for Sensex & Nifty comes around at 18000-17800 & 5400 respectively. Both the levels were tested numerous times today and closed marginally over them today. If Sensex does not hold this level for two days we are all set to test 17300-17000 in coming days.

– These are only technical levels but if one sees fundamentals India would continue growing more than the world with or without government support. Hence it’s an opportunity for MT-LT investors to start buying atleast in tranches, and so that retail investors do not miss the bus yet again as in earlier corrections/recoveries.

– We at VRIDHI value our customers and have come out with an interesting product which will suit all those wanting to make money by creating customized portfolios.

Check out the new product EPCS.

*VIVEK KARWA

CERTIFIED FINANCIAL PLANNERCM

& INVESTMENT STRATEGIST

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