131101 – Sensex is at all time closing high of 21197 today. We all know when markets hit new high, everyone on the street gets bullish. Today, across the media, be it print or television, you will find that the target for Sensex is pegged at 22000 by different analysts. The talk in the market was totally reverse a month back!
We in our article Few Words on Market on 17/9/2013 had mentioned the target for Sensex at 20500 – 21000 and second target for Sensex at 22000 – 22500. After testing the first target range the market had infact corrected and then picked up steam to close where we are today. MarketFastFood is not authored by God and hence, though we are human beings, it seems most likely we may test the second predicted levels of 22000 – 22500 on the index soon.
We are celebrating Diwali amid an economic crisis. Most businesses are not able to even touch the breakeven levels today due to the total economic mis-management by the current government. Nothing does seem to be going the right direction. Government seems to be sleeping on every issue – small or big. Onions, Tomatoes, Potatoes prices are touching new highs by the day. Instead of taking action on various issues our big wig politicians are busy asking votes, for the top post of the country, on basis of death of their death of family members! How Funny! What do they think on Indians?
Actually they know very well that Indians decide based on sentiments and emotions! Hence an emotional speech about father’s death and grandmother’s death can make people forget the miseries of last 10 yrs of useless governance and vote for same incompetent people who wants to head the country, many of them who haven’t headed even a street in their life time! The question is, are we still so incompetent to vote for the same people again? Election results will tell the answer 😉
The only person who is talking about governance and development today is #NarendraModi and even in the states like TamilNadu where I also belong to, and though the BJP has not got much presence, saw a turn out of more than 2 Lac people at his Trichy rally! The media was as per my info not allowed to report more than 60-70k people since it can lead to political damage to the local parties here. Those who visited the rally say that there were not many grey haired people at the rally which means the youth of the country is supporting him today.
Name any development of #Gujarat and the self certified secular parties have only one counter attack – Gujarat Riots! They forget 1000’s of riots which are happening in their own ruled states! Does a well built road or a bridge ask a person before travelling on it if he is a Hindu or a Muslim or a Christian? Development benefits all. I was in Shanghai and Beijing the day our great economist prime minister was also in Beijing to meet the Chinese premier. As an Indian I was feeling ashamed seeing the development China has done just in past 10-15 yrs! India is far behind today. As an normal citizen the feeling was saddening, what do our leaders feel after seeing such development? Seems like they just enjoy at tax payer’s money and continue their vote bank politics back home!
The most sickening part is that the media today is running a campaign on why was Rs.2063 Crs spent on #SardarPatel statue? Will not foreigners come to visit the place to see the World’s Tallest Statue? Will not tourism industry develop in the place now? People visit New York to see the statue, people go to Rio De Janeiro to see the landscape, why not India?
The political mudslinging will continue until elections are over. It is shameful that the government ate away Rs.1.73 Lac crores of public money without even passing a burp, upon all, a minister comes out and proclaims his Zero Loss theory on the #2G scam is today calling for a Live debate!
Let’s be very clear, we do not belong to any political party, but support anyone who can bring in development. Wrote little extra this time on politics, since the markets now on will trend majorly based on politics.
The government has failed on every front except on corruption. How will the investors get confidence to invest in the markets? The government had all the info on the scam which was brewing under the NSEL banner. The government choose to just sleep on the information. We at VRIDHI were skeptical from day one and hence did not let any investor of ours invest in the futures scheme of the exchange.
We did invest in the e-series products since they were cash market products and were supposed to get credited in the demat accounts. Even the settlement of this is now stuck and government has no clue on how to go about. If the e-series products are not settled soon, the time is not far when the investors will start loosing interest even in the ETFs which are trading on the exchanges!
How many of you are sure that the Gold Units or other units which you are holding are actually backed by the physical commodities?
The investors are actually running away from markets on daily basis. Though #Sensex is showing a all time high, most of the investor’s portfolios are still bleeding. The fact is the market is up just based on very few stocks which are trading at absurd valuations, and the overall market is still bleeding. If you remove these stocks from the market the Sensex is not trading beyond the 13000 levels!
Hence the valuations are still very good for the long term investors who would want to come in now. We feel small investors should choose the MutualFunds route to invest while the investors having capital of 10 Lacs and above should invest in equities directly with proper guidance from an advisor.
Picking the right stocks at this point can actually yield you much better returns than investing via managed funds or mutual funds. We reiterate small investors below 10 Lacs should still choose the Mutual Funds route.
On the occasion of Diwali many of you would want to know few companies where you can actually invest today. You can look to invest in the below stocks on the Muhurat Trading:
1. #BEML CMP 186.80 with a ST target of 210 (10% returns) and LT investors can buy for bigger target.
2. #Castrol India, CMP 308.80 for LT
3. #ApolloHospitals CMP 893 for MT-LT
Keep visiting www.VRIDHI.co.in for regular updates. You need not watch #CNBC , #Bloomberg or #ETNow atleast for the above stocks! You can also type in your mail id on the box provided on top left and subscribe for updates. You can also follow us by other means, click this link: https://vridhi.co.in/2013/07/15/stay-connected-with-vridhi/
We feel it will be tough for the market to sustain the range of 22000 – 22500 and moving above that would be possible if the economics of the country is modified. You may feel free to call/sms us in case any assistant in investing is required.
We also would be pleased if you can post your comments in the box below.
Wish You A Very Happy Deepawali and a Prosperous New Year
At Investors Service – Always
Certified Financial Planner and Wealth Creator
Contact Details: https://vridhi.co.in/contact-us/
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