ENJOY THE MARKET FALL...!!!!!!!!!

THE NIFTY IS DIVED FROM 6080 TO 5485 LEVEL, BUT COULD CREEP TO 5750 LEVEL. YETERDAY NOSE DIVED TO 5490 LEVEL. THE EROSION OF NIFTY LEVEL IS MASSIVE FOR A DAY TRADER WHERE AS THE OVER ALL PRAGMATIC VIEW PROVIDES A BUYING OPPORTUNITY TO LONG TERM INVESTORS. THE NIFTY HAS EXCELLENT SUPPORT AT 5250-5285 LEVEL. SO I PERSONALLY CONSIDER THET THE NIFTY FLOATING ABOVE 5335 LEVEL IS FAVING BULLS TO ACCUMULATE.

THE NIFTY HAS CORRECTED ONLY BECAUSE OF CAD AND BANKS FUTURE NPA PROBLEMS. THE INSTITUTIONAL INVESTORS WITH A GOOD LONG TERM VIEW CANNOT AFFORD TO SELL RELIANCE BELOW 809 LEVEL BECAUSE THE PRICE REVISION FOR THE GAS HAS DOBLED AND THE PROFITS SOAR FROM APRIL-2014. THE TCS AND INFY ARE FOR THAT MATTER THE TECHS WILL ENJOY THE WINDFALL GAINS AND THE LONGTERM CONTRACTS OF SOFTWARE SERVICES DUE TO RUPEE DEPRECIATION. SO IS THE CASE WITHEMERGING PHARMA LOTS. THE MINING EXPORTERS AND STEEL EXPORTERS ALSO ENJOY THE RUPEE FALL.

BY THE WAY….WHO IS BUYING INFOSYS, TCS AND TECHMAHINDRA, ANY WAY…???. THE DEEP POCKETED HNI AND INSTITUTIONAL INVESTORS WHO ARE MORE CONCERNED ABOUT THE SUSTAINED GROWTH AND DEVIDEND. THE CAPITAL SAFETY AND INREMENTAL GROWTH ARE ASSURED TO THOSE INVESTORS.

THE TATAMOTORS HAS NOW BECOME AN EXPORT ORIENTED COMPANY DUE TO JLR SALES. THE MAHINDRA CASE IS FAVOUABLE DUE TO TRACTOR SALES AND THEIR NEW PRODUCT LAUNCEHES. THE OTHER AUTO STOCKS LIKE HERO AND BAJAJ ARE FAVOURED DUE TO THEIR EXPORT PERFORMANCE AND NEW LAUNCHES.THE ONGC ENJOYS PRICE AT THE IMPORT PRICE OF OIL IN DOLLAR TERMS. THE OTHER STOCKS ARE NUETRAL.

NOW THE CHALLENGE IS COMING FROM THE BANKING SECTOR. THE HDFC AND HDFC BANK ARE NOE PARTICIPATING IN THE FALL. I BELIEVE THESE CAN ADD TO FALL BUT THE RECOVERY WILL BE SHARP DUE TO THEIR HIGH LEVEL OF PATRONAGE FROM FIIs. THE ICICI IS A NUTRAL CANDIDATE FAVOURS BOTH THE BULLS AND BEARS.

THE REAL PROBLEM COMING FROM SBI, PNB, BANK BARODA AND OTHER PSU BANKING LOTS. WHERE THE BLAME GAME ALREADY STARTED AMONG THE 3-SUBBARAO, CHIDAMABRAM AND PM-SING. THIS WILL NOW ADD PRESSURE ON THE NEW RBI CHIEF, FORCE HIM TO DANCE TO THEIR TUNES. THE FIIs ARE ALSO TAKING THE ADVANTAGE OF HAMMERING THE MARKETS TO GET DUE FAVOURS AT AN ERALY DATE. THE PRESSURE GAME IS ON….AS A MATTER OF FACT IT IS ALWAYS THERE AND WILL BE THERE.

SO THE CONCLUSION IS SO LONG RELIANCE TRADES ABOVE 793 LEVEL THE MARKETS ARE IN BULL GRIP. FOR AN INVESTOR IT IS AN OPPORTUNITY BUT FOR A TRADER ANYTHING IS OK…ENJOY THE MARKET FALL WITH A VIEW LIKE AN INVESTOR AND AS A TRADER BY STAYING WITH THE TREND…..