The turbulent and volatile times are continuing and as predicted earlier, volatility will be the norm for sometime to come. One was advised to do short term trades in such a volatile scenario. The fed cut the fed discount rate according to the expected 50bps and there was an expected sell off in dollar assets.
The dow jones jumped by almost 200 points when the fed cut was announced. But there were news of a large insurer reporting huge losses and the prospects of a rating cut led to massive sell off in the stocks, led by the financials. Our stock markets reacted accordingly and followed global cues to fall.
Next day, the insurer MBIA, came up with a clarification which cheered the us markets. Our markets opened gap down and there were fears that we have entered a bear phase and that FED may not have much left in its armory to save the US from recession. I do agree that there is still lot of pain left in the markets, but let us not to be blind and just behave on what the usa markets are doing.
To everyones suprise, the market recovered in the afternoon and from then, there was no looking back. The volumes were lower which did mean there was a lack of participation on the institutional front. There have been rumours of an impending fall in the markets the coming week. I received this news from everyone including people whom i really like- namely the panwallas and the sub brokers.
I was perturbed by this news as if you have a trading plan in mind which was laid out in front of you earlier, it wouldnt matter much. And also one point which i have not mentioned before is the need to have trading stop losses. They are very important and it makes you flexible and accept the market as being the ultimate king and we being mear slaves. The one who rejects this thesis is bound to be bankrupt soon. You cannot impose your views on the market. The market is much bigger than an individual and the market is always right. The individual may be wrong in the analysis.
So, then, what is the outlook for monday. My analysis says it maybe bullish. My favorite stocks, are giving bullish signals. The conservative traders should still wait for confirmation.
Gmr Infra, the ultimate beauty in trading which bounced from 168-69 levels back to 176 has formed a hammer formation on the charts which implies bullishness. It should reach our target of 183-85 and breaking that would reach 196-98.
Ks oils has formed a morning star pattern and i expect it to reach 82-83 levels soon
Our FM has said, that they may have to review the credit policy soon in view of the recnt global changes and I strongly expect a 25bps reverse repo rate cut by RBI.
I would remain invested in the real estate stocks
Ibulls real estate is a hold
Another real estate stock which i would like to suggest is LOK housing
Its available at the very cheap P/e compared to its peers and has posted impressive results.
Besides many mutual funds, namely, CLSA, kotak mahindra, have bought stakes at 350 levels
There is a preferential allotment to the promoters scehduled to happen at 354.
The Times of India Group is on the board as well
Cmp is around 215. I initiate a buy on it with a 1 year price target of 1000
I suggest that everyone who reads the blog, to do their own analysis before investing.
Further, i would like to make an appeal to everyone who reads this, to refer their friends or whomever they know, who is interestd in the financial markets to Visit this blog
Happy trading!
The dow jones jumped by almost 200 points when the fed cut was announced. But there were news of a large insurer reporting huge losses and the prospects of a rating cut led to massive sell off in the stocks, led by the financials. Our stock markets reacted accordingly and followed global cues to fall.
Next day, the insurer MBIA, came up with a clarification which cheered the us markets. Our markets opened gap down and there were fears that we have entered a bear phase and that FED may not have much left in its armory to save the US from recession. I do agree that there is still lot of pain left in the markets, but let us not to be blind and just behave on what the usa markets are doing.
To everyones suprise, the market recovered in the afternoon and from then, there was no looking back. The volumes were lower which did mean there was a lack of participation on the institutional front. There have been rumours of an impending fall in the markets the coming week. I received this news from everyone including people whom i really like- namely the panwallas and the sub brokers.
I was perturbed by this news as if you have a trading plan in mind which was laid out in front of you earlier, it wouldnt matter much. And also one point which i have not mentioned before is the need to have trading stop losses. They are very important and it makes you flexible and accept the market as being the ultimate king and we being mear slaves. The one who rejects this thesis is bound to be bankrupt soon. You cannot impose your views on the market. The market is much bigger than an individual and the market is always right. The individual may be wrong in the analysis.
So, then, what is the outlook for monday. My analysis says it maybe bullish. My favorite stocks, are giving bullish signals. The conservative traders should still wait for confirmation.
Gmr Infra, the ultimate beauty in trading which bounced from 168-69 levels back to 176 has formed a hammer formation on the charts which implies bullishness. It should reach our target of 183-85 and breaking that would reach 196-98.
Ks oils has formed a morning star pattern and i expect it to reach 82-83 levels soon
Our FM has said, that they may have to review the credit policy soon in view of the recnt global changes and I strongly expect a 25bps reverse repo rate cut by RBI.
I would remain invested in the real estate stocks
Ibulls real estate is a hold
Another real estate stock which i would like to suggest is LOK housing
Its available at the very cheap P/e compared to its peers and has posted impressive results.
Besides many mutual funds, namely, CLSA, kotak mahindra, have bought stakes at 350 levels
There is a preferential allotment to the promoters scehduled to happen at 354.
The Times of India Group is on the board as well
Cmp is around 215. I initiate a buy on it with a 1 year price target of 1000
I suggest that everyone who reads the blog, to do their own analysis before investing.
Further, i would like to make an appeal to everyone who reads this, to refer their friends or whomever they know, who is interestd in the financial markets to Visit this blog
Happy trading!
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