The markets are beautifully placed again with a bottom building process at 2560 level first and again at 2860 level but the tapering rater lowered high even today places the chart reader to think in contrary to the possible move but one has to live with the open mind to accept the reality.
In my earlier postings it was mentioned that the markets will be bottomed when the last leg beating was over. The Index on 17th closing was at 3075, the stocks that closed HUL-242, LT-800, BHEL-1191, HDFC-1782, HDFC Bank-1026, SBI-1420 and Bharti-677 and the lows registered on 27-10-08, after the suggested possible Bear beating, Nifty levels registered at 2253, HUL-185, LT-680, BHEL-981, HDFC-1382, HDFC Bank-862, SBI-985 and Bharti-483. the markets were bottom in principle but may the index likely to move close to the lows or even to lower levels to 1935-1865 level (only 10-15 percent chances existing given the present situations).
The trimmed excesses….18*10
The markets are bound to rise as they fell. This is a natural phenomena inevitably happens whether some body likes or not.
The concern at this hour is “how fast and by what time?”. This is the common question lingering in every investors mind. Now just imagine some body met with an accident and was admitted in a hospital, placed in intensive care. Then the question will be of What?. Whether it is survival or surprise on the happening?. Then every body will accept with joy that the patient is alive and will be discharged soon after surgery and due care. The same situation is happened to the financial markets across the globe, all are hospitalized, some are in ICU, surviving on Govt. intervention and some are in specialists care.
So my sincere request to investors is to for get reading the daily news of financial happening unless you prefer to be a day/swing trader. The best thing is keep averaging to the limit some body can, enjoy dreaming the golden days that are being manifested.
The only trouble with the recent young investors is the very nature demanding the high valuations that were there and as a matter of fact they paid for the boom. Now the situation is quiet different, the excess valuations of high P/E valuations above 50 were gone and the realistic levels of 9-14 are ruling. So adjust to the reality and accept the truth, keep on investing in companies that delivered high rate of growth over 3-4 years.
The ray of hope….17*10
I think that the Indian markets are very close to bottom out for time being at least. The stocks are showing resilience to move down in-spite of the best efforts by the Bears.
As posted yesterday the infrastructure stocks are finding buyers at the lower levels. There was a clear hope down the line for next two years we are likely to manage and may cross the previous highs based on our internal consumption despite of the global turmoil that we see now.
The crude is falling, metals plummet gives a scope to ease the fall in inflation. The central govt. likely to announce more investor friendly investments norms and the FII inflow will start coming back to India after Jan-09.
But for now the markets yester day recovered on the back of short covering and some kind of buying at the bottom. The worst is not over as the stocks like HUL, LT, BHEL, HDFC, HDFC Bank, SBI and Bharti have not tasted the Bear beating. So Nifty likely to see some lower levels but it won’t hurt as the most already lost their value. The Nifty likely to cross the 3660 level and may touch the resistance at 3930-3885 level in the coming months. The next fall will complete the bear hammering and the Bulls will take charge. At this time it looks like a joke as it was looked impossible to see a downward move when the indices climbing from 5800 to 6200 level.
The retail investors always caught because of the Price Luring while moving up and Fear of Loss while falling down. The markets always provide enough chance to make money but we tend to be ignorant to catch the opportunity. So it is not the BEST PRICE to buy A STOCK but the RIGHT TIME to buy is very important.
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