What a day it was!
Friends, 800 points jump in sensex and that too after 4 days back to back rally ....was very nice to see....
Almost all the cash stocks I discussed were in green.....
Suddenly things is looking better with UPA's confidence vote.Fin Min already reiterated that this year the growth wil be again 9% and he is looking confident as well which we were not able to see past 6 months......he is now talking of more reforms and he actually taken Left to task for meeting BJP , whom in no circumstances would they have taken support.
The equation is just like India 275 and China 256...........lol......
I think if the N-deal would have been with China then it would have passed without any confidence vote......
Sensex came up right from 12500 to 14900 and if some one can see the graph of the sensex then it was constantly up.A rally of 2400 in about 5 days is no less a good strength shown by bulls.Still Oil tanking below 100 is to take place.This whole lots of FII's will come back to buy all these stocks they sold at lower levels .It were Citi, Lehman, UBS , Bear Stern who made huge losses , in billions of dollars in subprime mortagage has to sell on compulsion to be cash liquid in US market.My previous post shows that FII's had tried to make both of the world.Selling when the
chips were down and thereby taking advantage of arbitration.But as soon as the stocks goes in premium the game will change as the they will have to cut the position and that will happen when stock will move up.Bears have sold around $7 bn which I wrote here sometimes back which I got to read from Prime Sec's N Jaykumar's interview at Money control.
These stocks are yet to be bought and given back to the lenders and this will fuel the market further.$7 bn borrowed stock is a big big selling, which is bigger then entire selling of FII's since Jan 08.....now as the stocks prices will move up lenders will also ask for the shares they lend and we have to see how bears do that......!
I have written many times here that there is only 2 countries where FII's can make good return and that is India and China.I am already seeing Citi gr back in action ,hich was a big seller in our market.Citi bought Prajay Eng in bulk deal of around 2 lacs shares.The stock was beateb down to just some redicule value.It is time for bargain hunting Realty stocks as I read that Goldman Scahs and Citi has already strated buying stake in Unitech and in some private Realty stocks which are not listed.....it means that Realty story is not over.
Fin Min PC is full of confidence and is speaking about taking the reforms in more vibrant way and that too fast before the next general election takes place next year.The assurance of Fin Min about the growth remaining in tact is another trigger for FII's becoming buyers in our market.
I am seeing now that everyone is giving a higher targets for sensex and nifty.I have written here things can change so suddenly.
To my personal view, we should see a good market for 2-3 months with profit booking taking place on rallies.But those who will sell in rallies may not be able to get stocks back.Ths can happen.
I think none of the chart was reading that market will move by 2400 points in 5 days....If anyone can claim that please do write me........here....I would like to know what charts were exhibiting since last Wednesday.
It was all doom doom and doom.I am in USA since Feb and I am seeing no panic here.Dow goes up with good news and goes down with bad news.But in our market it was only one way and that is down down and down.
With the doors getting open for N Deal I feel that India will come in a elite gr of Nuclear Power generation gr and it is going to help it in big way.
In pessimism comes the optimism.There is always light at the end of the tunnel.
Let us see how Bears take this movement.Whether they can again put a beark on bulls and get what they predicted....i.e. nifty 2500!
From here onwards there will be lots of selling on everyrise as analyst and perticularly the chartist will not let investors to hold on the stocks as they are saying this is a bear market rally but as happened in past,in May 2004/May 2006 and that all bear market rally has converted in a Bull Market rally......or say opening up of a new Bull run...................
Keeping the fingures crossed till then............

Rajeev