Monday, April 12, 2010

The below news can makes bears run pillar to post.....

BLOOMBERG Brussels, 11 April
European governments put together aloan package worth at least ¤30 billion ($41 billion) for debt-burdened Greece as they try to stamp out its fiscal crisis and restore confidence in the euro.
Forced into action by a surge in Greek borrowing costs to an 11-year high, finance ministers from the ¤16 countries said they would offer the loans at threeyear interest rates of around 5per cent in case Greece needs the money. A further, unspecified sum would come from the International Monetary Fund.
“This is a step of clarification that markets are waiting for — it shows there is money behind this,” Luxembourg Prime Minister Jean-Claude Juncker told reporters in Brussels today after chairing the ministers’ conference call. “The initiative for activating the mechanism rests with the Greek government.” With the euro facing the sternest test since its debut in 1999, the bloc maneuvered around rules barring the bailout of debt-stricken countries, aiming to prevent Greece’s financial plight from spreading and to mute concerns about the currency’s viability.
The euro has dropped 5.7 per cent against the dollar this year as the discord within Europe over the response to the Greek crisis sapped faith in Europe’s economic management.
A “loaded gun” to ward off speculators is now “on the table”, Greek Prime Minister George Papandreou told To Vima newspaper today. What would trigger the unprecedented European lending was left unanswered in today’s teleconference of euro-region officials, which included European Central Bank President Jean- Claude Trichet. Also left open was how much the Washington-based IMF would chip in for 2010, and how much Greece might need in 2011.
“We cannot speak on behalf of the IMF, but we know that they are ready to cooperate and contribute with a substantial amount,” European Union Economic and Monetary Commissioner Olli Rehn said. “It is really up to the IMF to speak for itself. We have to respect their independence.” Rehn said that the IMF would likely put up about a third of any aid plan, indicating another ¤15 billion in possible IMF funding.
European pledges in February and March to provide aid in an emergency failed to prevent Greek 10-year bond yields from soaring to 7.51 per cent on April 8, according to Bloomberg generic prices, amid concern that Papandreou’s government will be swamped by its bills.
The jump in Greek yields to the highest since December 1998 helped overcome resistance to a loan package in Germany, which as Europe’s biggest economy would contribute almost a third of the loans, the largest single share.
The premium investors demand to buy Greek 10-year bonds instead of German bunds jumped to 442 basis points April 8, easing to 398 basis points the next day as speculation over arescue gained steam.
 My Comments:
The above news can put bears train in reverse gear......and also of some chartist who are bearish due to Greek fiasco.....Beware BEARS.......if you are going to short the market this week , u will be in a very bad times........Nifty can cross 5500 this week!....
This is just my please do not take position in F&O on this.......
But all chances are there that Bulls will have upper hand this week...unless Infy gives a very negative guidence..........


  1. Hi Sir, though i have left doing it, based on my certain contacts in FnO ring, people are talking of fresh shorts being built up, below 5350..after reading this, the better the earlier they cover their shorts.

  2. BEAR
    so go on vacation
    all bear enjoy cold beer
    ready to buther like pig in april settlement also

  3. Posted by : EquityAdviser from MMB
    JSW Energy - Belong to OP Jindal group who have controlling stake of more than 70% in JSW Energy.OP Jindal group is known for successfully implementing and running large scale greenfield projects in the past.Most of JSW Energy projects are going on as per the targeted time frame thereby few already contributing to top & bottom line. JSW energy is having highest RONW of more than 30% which is the best among all power stocks including NTPC & Reliance Ind Infra. JSW is all likely to emerge as largest power sector player by the year 2017 moving ahead of NTPC & Reliance.Also JSW Energy is going in backward integration of investing & owning coal mines both in India & abroad thereby meeting the coal demand for running their plants.OP Jindal group commanding good discounting on bourses, JSW Energy will be in the same league of its other group companies like JSW Steel in terms of share price over 3-4 yrs time period. Immediate target is 140-150 for JSW Energy. And longterm sky is the limit for JSW Energy. Invest in JSW Energy as if you are investing in FD of 3yrs. Investors will reap rich harvest in JSW Energy.

    Reliance Power - Anil Ambani owned group had mopped up huge money from investors at unreasonable premium given the long gestation period of various projects.Thanks to legacy of Dhirubhai for Anil to mop up such huge money from market at such high premium during bull run of 2007. Coming to capabilities of Anil Ambani in implementing such large scale projects remain little skeptical. Anil is known as a number crunching man rather than a project man unlike his elder sibling Mukesh who is master in executing mega projects.The testimony is successful execution of Reliance refineries in Jam Nagar under Mukesh leadership.
    More than 2 years have passed from Reliance Power IPO hit the markets but still their projects are under implementation and nothing is contributing to Top & Bottom line. Anil may also opt to merge Reliance Power with Reliance Indl Infra later at a swap thats more favourable for RII.Same like ILU(Reliance Polypropylene) & PILU (Reliance Polyethylene) are merged into RIL in 90`s.

    NHPC - Huge equity base. Its Hydro power specific stock.Will take many many years to declare even a 5% paltry dividend.Will continue to have poor discounting on bourses due to earnings and equity mismatch.

    Adani Power - Projects are still at implementation stage.Adani group is new for such large scale projects.High equity base compared to JSW.Earnings mismatch with equity. Invest if you feel must or on progress of projects cautiously.

    Indiabulls Power - Strictly stay away from Indiabulls group.They are just trading & financing group.Have no experience in executing mega power projects.They also have mopped up money from public so far no proper information available about implementation.I am skeptical about India Bulls group. Indiabulls power is available cheap at below issue price but it doesn`t merit investment. Don`t invest in it just because its available cheap. Rather than buying 500 Indiabulls, better buy 200 JSW Energy.

    Above are entirely my views.And put forward on best of my knowledge

  4. Hi Rajeev,
    Wanted to know your view on reliance natural. I know you don't track bluechip companies but fortunately this scrip is doing rounds at a price where even midcap looks expensive. Also there are no competitors to this company. Anil ambani's track record is also good. Adlabs, reliance money, Rcom, all touched sky highs. Half the parliament is owned by these brothers and can change the policies even if the fundamentals do not support them. Pls let me ur views.