Thursday, May 19, 2011

BROAD MARKET OUTLOOK AND MARKET VIEW FOR 19TH MAY 2011

DO EVERY ONE TRADING,INVESTING & PARTICIPATING IN THE MARKET KNOWS THE TRUTH OF THE ACTUAL SCENE AND THE PICTURE BEHIND THE SCREEN??? AND THE ANSWER IS AT MOST NONE!!!!


THE REASON IS SIMPLE. WE DON'T LOOK,LISTEN AND OBSERVE WHAT WE DON'T LIKE TO AND THAT MAKES A DIFFERENCE BETWEEN A COMMON INVESTOR AND AND AN INTELLIGENT AND INFORMED INVESTOR.SO LISTEN AND OBSERVE WHAT IS SUBTLE AND UNREVEALED.


FEW DAYS BACK WHEN THE PRICES OF THE COMMODITIES AND CRUDE WERE RISING EVERY ANALYST IN THE MEDIA PREDICTED AND PRAYED "NEGATIVE CORRELATION BETWEEN CRUDE AND INDIAN STOCK MARKET". BY GOOD LUCK THE PRICES COOLED DOWN BUT IT WAS MORE SHOCKING FOR INDIA. WHY????


NOW IT IS SAID THAT THE FALL IN THE CRUDE AND COMMODITIES IS LARGELY DUE TO EXPECTATION OF THE DEMAND SLOW DOWN IN U.S AND NOT BECAUSE OF UNWINDING OF THE LONG SPECULATIVE POSITIONS. WHAT DOES THIS MEAN FOR INDIA??????


ITS TOTALLY NEGATIVE FOR INDIA. THE REASON IS AGAIN VERY SIMPLE, IF THERE WILL BE SLOWDOWN IN GLOBAL DEMAND THERE COULD BE FEAR OF RISK AVERSION (consequently allocation of funds to equities will shrink, globally) AND DUE TO INTEREST RATE HIKE(and some more in offing)THERE WILL BE SLOWDOWN THE CREDIT OFF-TAKE,DELAY IN INFRASTRUCTURE PROJECTS,DEFERRAL IN CAPEX PLANS, AND RESULTING IN SHORTAGES IN SUPPLY SIDE ECONOMY. THIS MAY LEAD TO VICIOUS CIRCLE OF LOW SUPPLY AND HIGH INFLATION TRAP FOR INDIAN ECONOMY. 


OUR MINISTERS AND POLICYMAKERS SHOULD BE AWARE OF THIS AND THAT IS WHAT OUR MARKET IS ANTICIPATING AND TRYING TO PRICE-IN. INDIAN MARKETS ARE AT CROSS-ROADS 5350 STANDS FOR WIDE ACCLAIMED SUPPORT WHICH SHALL BE VITIATED ANY TIME SOON GIVING JOLT TO BULLS.


INDIA IS NOT ON GLOBAL FUND MANAGERS RADARS NOW,NO MORE AFTER THE RATE HIKE ON MAY 3RD. THIS WILL TAKE NIFTY TO 5100-4900 SOON.


AND NOW IF,............... AND  "IF" THERE IS ANOTHER RATE HIKE IN JUNE TO CONTROL THE INFLATION ON COST OF GROWTH, BE READY TO SEE THE COLLAPSE OF INDIAN MARKET............. NIFTY MAY FALL TO 4500-4400!!!!!!!!!  AND TO ADD NO SURPRISE THIS FALL WILL BE VERY PAINFUL & IT MAY NOT TAKE ANY TIME SOON TO COME OUT OF LONG CONSOLIDATION,SAY FROM JULY 2011 TO JANUARY 2012. ON THE OTHER HAND IF RBI AND POLICY MAKERS UNDERSTAND THIS AND SAY NO MORE RATE HIKES THIS WILL BE SIGN OF GREAT RELIEF FOR THE BULLS AND MARKET SHALL START THE UPWARD JOURNEY FROM JULY, AFTER THE Q1 RESULTS TO 5800-5900+++


HENCE THE COMING MONTH OF JUNE SHALL DECIDE THE DESTINY OF INDIAN STOCK MARKET AND EVERY PARTICIPANTS......




ASTROLOGICALLY: AS EXPLAINED EARLIER THE ASTROLOGICAL DOCTRINE OF ECLIPSE GIVES HOPE THAT ANY TIME AFTER JUNE THERE WILL BE AN UPSIDE JOURNEY IN NIFTY TO 5900++ LEVELS.




FOR TODAY NIFTY SHALL TAKE A PAUSE, IF THE GLOBAL CUES SUPPORT THE RANGE SHALL BE 5380-5520. STOCK SPECIFIC MOVE TO CONTINUE. 


STOCKS TO WATCH FOR INVESTMENT REMAINS THE SAME OLD MENTIONED SEVERAL TIMES. TO REPEAT SOME NAMES:


OBEROI REALITY


ORCHID CHEM


SRI RAM TRANSPORT FINANCE


SHALIMAR PAINTS


INGERSOLL RAND


CAMLIN


TIMKEN


PIRAMAL GLASS


ETC ETC 




Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.

Disclaimer: 

This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.A

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