Friends,
Though USA market tanked over 100 points yesterday, our market just shed 30 points and nifty actually gained.
I think that Infy result is going to play a major role here from today onwards for deciding the future course of the market and I feel that Infy will not only come out with good nos but also will give a very optimist guidance.It is clear that all FII’s have shed stake in all frontline IT stock , namely Infy, Wipro, Satyam,I-flex etc as rupee was appreciating then and US was slowing down.But as FII’s sold here in our market in huge quantity and also repatriated the amt back home, selling in rupees came and buying in dollars also was there for selected FII’s who had to sold on compulsion due to heavy loss, made rupee weak and hence rupee is now at 43 against dollar.
This will have a very positive effect on the bottomline of IT cos.
I have already wrote that IT is the sector to watch in my previous post and also have given 3-4 names in small caps and midcap space.
I think a temporary bottom have been made at 12800 and seems for atleast 2-3 months we would not see that bottom.Means we should see a good rally developing from onwards.
This is my view and I may get wrong again here.But the reason I am seeing for this is
1) The clarity has come that Nuclear Deal is still on and it will soon materialize
2) There is no danger for UPA government to fall
3) Leftist has been left aside by a single master stroke by…( Fill In The Blanks)…………
4) I am seeing more upper circuits …
5) I am seeing less 52 week lows, means the ratio has decreased..
6) I am seeing lots of value in A gr stocks as well
7) Almost all fundamentals stocks are getting cheaper and cheaper
Moreover one should remember that Indian Market tanked more of FII’s distress selling then the fundamentals.Means though inflation has gone up it is due to more Crude price rise then anything else.And hence as soon as crude comes down Inflation will also come down. Both are closely connected.
Always buy stocks which are underowened.This has always been my policy to buy stock which are underowned as then only we get them cheap.
You all must have seen , I have always discussed stocks where people are not knowing.
I again suggest all my readers that do read all my COMMENTS OR REPLY to any reader.I sometimes write some stocks which I may have not discussed on front page…..
Best Of Luck to all……
Long Live India Growth Story…..
Rajeev
again markets have tanked both in India and US on Fri and this is inspite of decent numbers from Infy. I feel that we are heading towards 11000 and then 9000.. A pessimist friend of mine is suggesting 6000 (bse and not nifty) !!
ReplyDeleteI feel that a few lower circuits will be more useful than a slow pain. Slow pain is a killer and can prolong the agony for months, which I feel is inevitable, if either CITI or LBH goes down now the way of indymac. They will liquidate everything and that includes major stake like HDFC by CITI..if that happens, my friend's call of BSE6000 is quite feasible..
Crick_love,
ReplyDeleteEverything can happen.Nothing can be written if FII's r selling.
Citi, Lehman and others are selling in big way....
But you wrote, yes sooner the better...but remember that there is a silverlining and that is the down trend is due to FII selling an not on fundamentals.....
I personally think that fundamentals has to prevail sooner or later.....
But it is a fact that no one on earth predicted this happening so fast...