AS SAID EARLIER THE MARKET WAS NOT EXPECTING 50bps HIKE IN THE INTEREST RATE WHICH CAME AS A SHOCKER TO THE MARKET.NOW IF IT ANALYSED THAT FIRST THE RATES HAVE GONE UP BY 50bps AND AGAIN THE SAVINGS RATE HAS ALSO BEEN HIKED BY 50bps, WHICH CAME AS SURPRISE FOR THE MARKET. AS THE SAVINGS DEPOSIT ACCOUNT FOR AROUND 22% OF THE TOTAL DEPOSIT MIX OF THE BANKING SECTOR, SO A 50bps HIKE IN THAT MEANS THAT TOTAL IMPACT ON THE NET INTEREST MARGINS OF THE BANKS COULD BE AROUND 0.0921% FOR THE BANKING SECTOR, THAT IS WHY THE BANKING SECTOR AS WHOLE HAS BEEN IMPACTED THE MOST TODAY.
THE CREDIT POLICY THOUGH NEGATIVE FOR THE MARKET IN THE SHORT TERM IS GOOD FOR THE ECONOMY , AS THE BASIC OBJECTIVE OF THE RBI TO CONTAIN INFLATION COULD BE SERVED. IF THE INFLATION IS NOT TACKLED IN TIME THAT MAY LEAD TO DE-ACCELERATION OF ECONOMIC GROWTH IN THE LONG TERM, WHICH MAY BE MUCH MORE HARMFUL THAN IMPACT ON GROWTH NOW. HENCE RBI HAS DONE RIGHT JOB IN MAINTAINING THE FOCUS ON BASIC OBJECTIVE OF TACKLING INFLATION.
NIFTY HAS STRONG SUPPORT AT 5550-5500 RANGE WHICH WILL BE VIOLATED IN DAYS TO COME. NOW KEEPING IN VIEW THE MACRO & MICRO HEADWINDS MARKET WILL BE IN NO HURRY TO CROSS 5830-5900. THE NEW RANGE FOR THE MARKET SHALL BE 5400-5650 WITH DOWN WARD BIAS. GRADUALLY OVER THE PERIOD OF TIME NIFTY MAY ALSO TEST BELOW 5400 BUT THAT WILL BE A VERY GOOD BUYING OPPORTUNITY.
MAY SERIES WILL HAVE NEGATIVE BIAS AND MARKET WILL SPEND AT LEAST 2-3 MONTHS IN CONSOLIDATION AT THE LOWER LEVELS(5200-5600). IF THE MONSOON IS GOOD AND INFLATION COMES DOWN THEN ALONG WITH THE POSITIVE GLOBAL CUES MARKET WILL SEE A BREAKOUT ABOVE 5830, WHICH MAY GIVE NEW LIFE TO BULLS. HENCE TO CONCLUDE, WE SHALL SEE 5400 AS IMMEDIATE SUPPORT IN MAY SERIES AND 5200 AS STRONG SUPPORT FOR BULLS TO REENTER WITH UP SIDE CAPPED AT 5800. SHORTING THE MARKET AT THESE LEVEL IS NOT SUGGESTED.
FOCUS SHOULD BE ON THE STOCK SPECIFIC MOVES AS INDEX MIGHT NOT DO WELL BUT THE STOCKS WILL KEEP ON MAKING THEIR MOVEMENT ONE DAY OR THE OTHER. THOSE SHARES WHICH ARE FUNDAMENTALLY STRONG AND HAVE NO BEARING OF INDICES, SHOULD BE SEARCHED AND BOUGHT FOR POTENTIAL GAINS.
FOLLOWING STOCKS HAVE BEEN SEARCHED ON SOME NEWS, ACTION OR STORY WHICH WILL OUT PERFORM EVEN IF THE MARKET REMAINS VOLATILE. IT DOESN'T MEAN THAT THESE STOCKS WILL NOT FALL BUT THEY WILL OUTPERFORM THE MARKET AND INDICES. BUY THE STOCKS ON EVERY DIP AND HOLD FOR NEWS FLOW/ TARGET TO COME. PLEASE ALSO ENSURE THAT YOU KEEP ON TRACKING THE OLD VIEWS ON SCRIPTS FROM TIME TO TIME.
SKUMAR NATION
ARVIND
ALOK INDUSTRIES
TIMKEN
PIRAMAL GLASS
CAMLIN
INGERSOLL RAND
ORCHID
CANFIN HOME
LIC HOUSING FIN
OBEROI REALITY
SURAJ DIAMOND
PETRONET LNG
THERE ARE MANY MORE STOCKS WHICH HAVE SOME STORY OR ACTION, WHICH ARE NOT MENTIONED HERE. ANALYSTS BELIEVE THAT THESE STOCKS SHOULD BE BOUGHT ON EVERY FALL FOR UP MOVE WHEN MARKET STABLISES & IMPROVES.
FOR 4TH MAY 2011:
TODAY AFTER THE INITIAL HICCUPS MARKET MAY TAKE SUPPORT IN RANGE BETWEEN 5550 TO 5500 AND BOUNCE BACK TO END IN GREEN. HENCE BUY THE ABOVE MENTIONED STOCK WITH SPECIAL FOCUS ON PETRONET, LIC HOUSING, PIRAMAL GLASS & ORCHID.
ASTROLOGICALLY: AFTER THE INTIAL WEAKNESS MARKETS MAY END UP IN GREEN. BUYING CE5600 MAY GIVE PROFITS.
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.
you see that the banking sector as a whole has been impacted the most today.
THE CREDIT POLICY THOUGH NEGATIVE FOR THE MARKET IN THE SHORT TERM IS GOOD FOR THE ECONOMY , AS THE BASIC OBJECTIVE OF THE RBI TO CONTAIN INFLATION COULD BE SERVED. IF THE INFLATION IS NOT TACKLED IN TIME THAT MAY LEAD TO DE-ACCELERATION OF ECONOMIC GROWTH IN THE LONG TERM, WHICH MAY BE MUCH MORE HARMFUL THAN IMPACT ON GROWTH NOW. HENCE RBI HAS DONE RIGHT JOB IN MAINTAINING THE FOCUS ON BASIC OBJECTIVE OF TACKLING INFLATION.
NIFTY HAS STRONG SUPPORT AT 5550-5500 RANGE WHICH WILL BE VIOLATED IN DAYS TO COME. NOW KEEPING IN VIEW THE MACRO & MICRO HEADWINDS MARKET WILL BE IN NO HURRY TO CROSS 5830-5900. THE NEW RANGE FOR THE MARKET SHALL BE 5400-5650 WITH DOWN WARD BIAS. GRADUALLY OVER THE PERIOD OF TIME NIFTY MAY ALSO TEST BELOW 5400 BUT THAT WILL BE A VERY GOOD BUYING OPPORTUNITY.
MAY SERIES WILL HAVE NEGATIVE BIAS AND MARKET WILL SPEND AT LEAST 2-3 MONTHS IN CONSOLIDATION AT THE LOWER LEVELS(5200-5600). IF THE MONSOON IS GOOD AND INFLATION COMES DOWN THEN ALONG WITH THE POSITIVE GLOBAL CUES MARKET WILL SEE A BREAKOUT ABOVE 5830, WHICH MAY GIVE NEW LIFE TO BULLS. HENCE TO CONCLUDE, WE SHALL SEE 5400 AS IMMEDIATE SUPPORT IN MAY SERIES AND 5200 AS STRONG SUPPORT FOR BULLS TO REENTER WITH UP SIDE CAPPED AT 5800. SHORTING THE MARKET AT THESE LEVEL IS NOT SUGGESTED.
FOCUS SHOULD BE ON THE STOCK SPECIFIC MOVES AS INDEX MIGHT NOT DO WELL BUT THE STOCKS WILL KEEP ON MAKING THEIR MOVEMENT ONE DAY OR THE OTHER. THOSE SHARES WHICH ARE FUNDAMENTALLY STRONG AND HAVE NO BEARING OF INDICES, SHOULD BE SEARCHED AND BOUGHT FOR POTENTIAL GAINS.
FOLLOWING STOCKS HAVE BEEN SEARCHED ON SOME NEWS, ACTION OR STORY WHICH WILL OUT PERFORM EVEN IF THE MARKET REMAINS VOLATILE. IT DOESN'T MEAN THAT THESE STOCKS WILL NOT FALL BUT THEY WILL OUTPERFORM THE MARKET AND INDICES. BUY THE STOCKS ON EVERY DIP AND HOLD FOR NEWS FLOW/ TARGET TO COME. PLEASE ALSO ENSURE THAT YOU KEEP ON TRACKING THE OLD VIEWS ON SCRIPTS FROM TIME TO TIME.
SKUMAR NATION
ARVIND
ALOK INDUSTRIES
TIMKEN
PIRAMAL GLASS
CAMLIN
INGERSOLL RAND
ORCHID
CANFIN HOME
LIC HOUSING FIN
OBEROI REALITY
SURAJ DIAMOND
PETRONET LNG
THERE ARE MANY MORE STOCKS WHICH HAVE SOME STORY OR ACTION, WHICH ARE NOT MENTIONED HERE. ANALYSTS BELIEVE THAT THESE STOCKS SHOULD BE BOUGHT ON EVERY FALL FOR UP MOVE WHEN MARKET STABLISES & IMPROVES.
FOR 4TH MAY 2011:
TODAY AFTER THE INITIAL HICCUPS MARKET MAY TAKE SUPPORT IN RANGE BETWEEN 5550 TO 5500 AND BOUNCE BACK TO END IN GREEN. HENCE BUY THE ABOVE MENTIONED STOCK WITH SPECIAL FOCUS ON PETRONET, LIC HOUSING, PIRAMAL GLASS & ORCHID.
ASTROLOGICALLY: AFTER THE INTIAL WEAKNESS MARKETS MAY END UP IN GREEN. BUYING CE5600 MAY GIVE PROFITS.
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.
you see that the banking sector as a whole has been impacted the most today.
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