morning thoughts...
The markets reacted from close to our resistance levels mentioned and saw a steep slide after many days of continous rise.
Technically the markets will remain volatile with two side oppurtunities for both long and short trades.
We have well indicated in advance on monday that JUPITER - URANUS - MERCURY GETS STRAIGHTEN IN INCLINATION WITH LIBRA - HOPE ALL SAW MAGIC
Astrologcally planet Jupiter will be combust from July 10 to August 08, 2014. It is a planet that is credited the most for its beneficial nature. It is going to combust for a long time. It may affect the predicting abilities of the professionals running through DBA of Jupiter. It is a Karaka for law, philosophy, religion, truth, and morality on the whole. We are witnessing a controversy from June 23, about the faith of many people in a person whose temples are getting very high donations. This matter may take a ugly shape during this time. Jupiter is exalted and aspected by exalted Saturn and Rahu . The planet Rahu will leave Saturn on July 14, but it will be joined by another malefic planet i.e. Mars , on July 15. On the date of July 14, 2014 all the three planets will be seen together.
In the first 6 months of 2014, the BSE-Sensex gained close to 5,000 points to reach 26,000 levels.
For India, the biggest party pooper will be the pace of economic growth. Recent surge in the indices have been the product of expectations that the Modi government will unleash a slew of reforms that will set India's GDP growth on a higher trajectory. This could be easier said than done.
The other way of looking at it is the pace of corporate earnings. For the Sensex to reach 35,000, assuming that the price to earnings multiple stays at 20 times, earnings of Corporate India will have to grow by around 15-20%. This does not look too difficult. But a lot of the Sensex constituents are commodity companies. And for them, the growth in earnings is linked to GDP growth. So if the GDP growth fails to take off, earnings for these companies are hardly bound to grow and higher Sensex levels may hardly be justified.
Thus, our view is that rather than predicting the next Sensex level, it would make more sense to follow a bottom up approach in stock picking. And carrying this further, investors could instead focus on picking high growth stocks that have the potential to outperform the Sensex and generate wealth over the longer term.
The other way of looking at it is the pace of corporate earnings. For the Sensex to reach 35,000, assuming that the price to earnings multiple stays at 20 times, earnings of Corporate India will have to grow by around 15-20%. This does not look too difficult. But a lot of the Sensex constituents are commodity companies. And for them, the growth in earnings is linked to GDP growth. So if the GDP growth fails to take off, earnings for these companies are hardly bound to grow and higher Sensex levels may hardly be justified.
Thus, our view is that rather than predicting the next Sensex level, it would make more sense to follow a bottom up approach in stock picking. And carrying this further, investors could instead focus on picking high growth stocks that have the potential to outperform the Sensex and generate wealth over the longer term.
Tuesday's - wealth generating calls
Gold Mcx - booked profits at 27490 - long from 27222
Silver Mcx - booked profits at 44577 - long from 43900
Nifty - sell nifty at cmp 7806 sl 7835 targets 7690 - booked profits at 7701
Bank Nifty - sell at cmp 15535 sl 15670 targets 15000 - booked profits at 15050
Jackpot Sasken Communications - booked profits at 302 - long from 255
Double Bumper Pfc 300 pa - buy at cmp 8.30 sl 6 targets 18 - booked profits at 15.50
Triple Bumper Sbin 2600 pa - booked profits at 108 - long from 47
