Things were going fine until this one had to come. Another rate hike of 50 bps. Sure enough markets felt the tremors and dived once again. Naturally the rate sensitives were the worst hit.
Best to wait for the outcome on US debt ceiling matter to clear up and if US can save the day, as it might well, for the stakes are too high, we can continue with our stock specific approach.
In the meantime appearance of L&T Finance Holdings IPO is truly providential. One can apply by all means.
Happy investing
Basudev
Tuesday, July 26, 2011
Sunday, July 10, 2011
Volatile markets
Indian markets made handsome gains past couple of weeks after Nifty touched a low of 5257 on Jun20. Thursday saw a whopping gain of 1.8%. However much of the gain of Thursday was wiped out on Friday as Nifty fell by close to 1.2%. Friday's fall could be because of the new mining bill mooted by Govt. If passed, it would mean mining companies would have to part with some of their profits as royalty, ostensibly to compensate people affected by mining activities. All these companies lost heavily on the bourses on Friday with sentiment rub off pulling down the market.
Its no brainer these days to figure out that the recent gains in the market have been FII driven. To that extent it is difficult to say what FIIs will do next. However few aspects of market technicals may be worthwhile to recognise.
1. Nifty is close to its 200 DMA (200 day moving average) which is at 5742. This level will be required to be crossed for the Nifty to continue its upmove. In other words the 200 DMA is a resistance for the nifty on its way up. It may stop there or it may overcome it. That will have to be seen.
2. The level of 5200 is important on the downside. It is here around this level that the Nifty took support number of times. Hence 5200 can be considered to be a very strong support. Again market may take support there or it may not. That we will have to see. For a shorter term perspective 5350-5400 is an important area.
Disclosure: I am continuing to hold my shares
Happy investing
Basudev
Its no brainer these days to figure out that the recent gains in the market have been FII driven. To that extent it is difficult to say what FIIs will do next. However few aspects of market technicals may be worthwhile to recognise.
1. Nifty is close to its 200 DMA (200 day moving average) which is at 5742. This level will be required to be crossed for the Nifty to continue its upmove. In other words the 200 DMA is a resistance for the nifty on its way up. It may stop there or it may overcome it. That will have to be seen.
2. The level of 5200 is important on the downside. It is here around this level that the Nifty took support number of times. Hence 5200 can be considered to be a very strong support. Again market may take support there or it may not. That we will have to see. For a shorter term perspective 5350-5400 is an important area.
Disclosure: I am continuing to hold my shares
Happy investing
Basudev
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