Friends,
I wrote here that 18500 is a good support and that shouldn't be broken but market broke that and hence I feel we can still go below 18k to somewhere around 17k.
The best way now from hereon would be to stay away from the market.Don't do anything.Just hold what you are holding and maybe around 17k buy more to average it if one feel the fundamentals are still the same.
Inflation,Swiss Money, Black Money, Money Laundering and taken away to London and from there transferred to somewhere else , Oil going up has taken toll on the market and hence market is in downtrrend but let me say here that the trend has not changed.
We are still in Bull run and no way we can again come back to the level we saw in Oct 2008.8k.
As soon as the p/e will contract, we will become cheaper and again then money will start flowing in.
The theory doing round in market is FII are selling because USA economy is coming back to normal and so FII are selling here to invest in US.That view I do not concur with as there is ample liquidity in USA itself with QE2 of another $600 bn coming in from FED.QE is quantitative easing, Quantitative easing (QE) is a monetary policy used by some central banks to increase the supply of money by increasing the excess reserves of the banking system.
So I don't feel that there would a a outflow of FII money.No way India's growth can be ignored by the world.
These type of corrections gives us a chance to buy at lower levels.Grab the oppertunity.Well, some of my stocks are still trading above the my recomded price such as Spanco, Sujana Towers,SNL Bearing ,Cronimet Alloy, Srei Infra etc etc....and I feel that if these stocks still goes down then that will be an excellent oppertunity to buy them.
Invest for 2-3 yrs.Don't see the prices daily.That will disturb you.Correction comes and go.We need to digest it.Learn to digest it.There can be no quick money in stock market.
Well, I have written that we can touch 17k and I may prove wrong and may happen that we never touch that or it may even happen that we may touch 16k.No one knows what is going to happen and when market will take the U turn.
That is why I rarely predict the market course.Let us see what happens next week.The sentiment is weak and in near term I am seeing no ray of hope or news that can turn the sentiment to positive.Normalcy will take time.
Government needs to take measures to tame the inflation and that can only be done if supply comes and not by raising the Interest rate.by raising the int rate , and thus quzzing the liquidity will have no effect because the real problem is scarcity of products, agri product.
RBI governor has confirmed that rasing Int rate has not worked.I am no economics guy and I know little about economy.What I am able to write is I read and that is why I understand it.I donno why Int rate is increased to tame the inflation?There is a big question mark why Subbarao took such decision?
When the demand is high and there has been artificial quiz of supply while we read that commodities has been locked in storage rooms so that supply becomes dry then what is the use to increasing the Int rate?
Is RBI thinking that due to excess liquidity there is Inflation?No....it is not....the reason is somewhere else which I discussed above.
Looks like Congress government has totally failed in taming the Inflation which is artificiallty made,failed in 2G Scams where government lost huge huge revenue then CWG,then money going to London and then transferred to somewhere else.........
I wrote here that 18500 is a good support and that shouldn't be broken but market broke that and hence I feel we can still go below 18k to somewhere around 17k.
The best way now from hereon would be to stay away from the market.Don't do anything.Just hold what you are holding and maybe around 17k buy more to average it if one feel the fundamentals are still the same.
Inflation,Swiss Money, Black Money, Money Laundering and taken away to London and from there transferred to somewhere else , Oil going up has taken toll on the market and hence market is in downtrrend but let me say here that the trend has not changed.
We are still in Bull run and no way we can again come back to the level we saw in Oct 2008.8k.
As soon as the p/e will contract, we will become cheaper and again then money will start flowing in.
The theory doing round in market is FII are selling because USA economy is coming back to normal and so FII are selling here to invest in US.That view I do not concur with as there is ample liquidity in USA itself with QE2 of another $600 bn coming in from FED.QE is quantitative easing, Quantitative easing (QE) is a monetary policy used by some central banks to increase the supply of money by increasing the excess reserves of the banking system.
So I don't feel that there would a a outflow of FII money.No way India's growth can be ignored by the world.
These type of corrections gives us a chance to buy at lower levels.Grab the oppertunity.Well, some of my stocks are still trading above the my recomded price such as Spanco, Sujana Towers,SNL Bearing ,Cronimet Alloy, Srei Infra etc etc....and I feel that if these stocks still goes down then that will be an excellent oppertunity to buy them.
Invest for 2-3 yrs.Don't see the prices daily.That will disturb you.Correction comes and go.We need to digest it.Learn to digest it.There can be no quick money in stock market.
Well, I have written that we can touch 17k and I may prove wrong and may happen that we never touch that or it may even happen that we may touch 16k.No one knows what is going to happen and when market will take the U turn.
That is why I rarely predict the market course.Let us see what happens next week.The sentiment is weak and in near term I am seeing no ray of hope or news that can turn the sentiment to positive.Normalcy will take time.
Government needs to take measures to tame the inflation and that can only be done if supply comes and not by raising the Interest rate.by raising the int rate , and thus quzzing the liquidity will have no effect because the real problem is scarcity of products, agri product.
RBI governor has confirmed that rasing Int rate has not worked.I am no economics guy and I know little about economy.What I am able to write is I read and that is why I understand it.I donno why Int rate is increased to tame the inflation?There is a big question mark why Subbarao took such decision?
When the demand is high and there has been artificial quiz of supply while we read that commodities has been locked in storage rooms so that supply becomes dry then what is the use to increasing the Int rate?
Is RBI thinking that due to excess liquidity there is Inflation?No....it is not....the reason is somewhere else which I discussed above.
Looks like Congress government has totally failed in taming the Inflation which is artificiallty made,failed in 2G Scams where government lost huge huge revenue then CWG,then money going to London and then transferred to somewhere else.........
SIR U RIGHTLY SAID DO NOT LOOK AT THE PRICES DAILY U GET DISTURBED TRUE TRUE TRUE ALSO HOLDING MUST BE FOR MINIMUM 2 TO 3 YRS VERY RIGHTLY SAID BOTTOM OF MY HEART I SALUTE U.....I HAD PONDY AK CAPITAL SUJANA TELECANOR WHICH I EXITED AT 20 PERCENT INCREASE BUT TO MY SURPRISE THESE STOCKS GOT DOUBLED SOON THEN I DECIDED NOT TO EXIT SOON AND I KNOW I BELEIVE IN U I NOW INVESTED TOO TOO MUCH IN HBL FACOR ALLOYS LUDLOW HOPE THE VERY BEST ALSO SMARTLINK NETWORK....... FEEL OF BUYING COMPUCOM UR STUDY REGARDING THIS STOCK TRADING AT 17
ReplyDeleteSunil,
ReplyDeleteI was tracking Compucom much much earlier at 10 paid up and beforfe Bonus, so now view now.
HBL is an excellent Co to hold for LT.
Pondi Oxi still looks ecellent bet.
No view on Facor Alloy,Ludlow as I do not track.
Smartlink looks good but will take time to move.