Friday, June 27, 2014

morning thoughts...

The markets ended june series on a volatile and cruncy note with a negative mark.
Technically the markets looks in consolidation mode and will stay volatile for the coming sessions.
The volatile nature of stock markets does keep a good chunk of the market participants away. The many scams and various crises would be other reasons for the same as well. 
However, the fact of the matter remains, that over the long term, equities do tend to provide good returns. More than enough to beat the high inflation levels in India. While physical assets and safe instruments have found a larger share of one's savings portfolio over the last few years, it seems that retail investors are making a comeback to capital markets. May be it's the sharp run up in markets that has led to the same; or maybe it's their faith in the new government. Nevertheless, we would like to remind our readers that equities, when bought during times of uncertainty i.e. when valuations are low, tend to provide much stronger returns over long periods. 
The assets under management of Indian mutual funds touched Rs 10 trillion last month; with equity forming about 25% of the same. The many awareness initiatives by market watchdog SEBI and the various mutual funds seem to be key drivers for the increase in participants; we however cannot help but think that a lot of this is also driven by the way stocks have performed in the recent past. With the broader markets trading at valuations that are not very cheap at current levels and in a market that is seemingly driven by sentiments, investors are advised to take cautious measures which include investing in good schemes and avoiding sector specific funds. 

Coming to the commodity markets bullions , base metals and energy looks volatile with a buy on dips and sell on rallies strategy.

We start a new july series

Buy double bumper Ranbaxy 500 ca , Sun pharma 560 ca

Buy Panacea biotech , mcloed russel

Wednesdays Calls 

Biocon 520 ca doubled
Fii and jackpot calls Indoco remedies rose 25 rs and rallis zoomed 30 rs
Gold gave 230 rs , silver 457 rs and copper 5 rs

www.astroeyes.blogspot.in