morning thoughts...
The markets continued its deceptive mode and traded volatile more most of the day and closed negative for the week right on the support levels mentioned.
Technically the markets are just on supports and could bounce in the coming sessions.
However on the lower side good supports exists around 7490 levels whereas stiff resistance is viable around 7675 levels where some selling pressure could exist.
Fundamentally In India, it is the government that decides how much it is going to borrow. This amount of borrowing in turn will determine the increase in the quantity of money. Thus, unless the government gets a grip on its own finances, the money supply will go on increasing. Short-term measures like tinkering with customs/excise duties and imposing the Essential Commodities Act on speculators will not solve the problem. The RBI governor Raghuram Rajan has quite rightly stated that India must solve this structural inflation problem as soon as possible. Otherwise, the cost of living for the common man will keep increasing year after year. Even corporates will not be spared. Structural inflation tends to last across the entire economic cycle. During periods of high GDP growth, even firms with poor pricing power will do well.
However, when the down turn hits, only the most cost efficient firms with strong pricing power will survive to create long term wealth. So far the Modi government has shown its intent to control spending but we haven't seen many concrete measures being implemented. History will remember the previous UPA government as a failure on the inflation front. We certainly hope that this government's legacy does not end up the same way.
Coming to the commodity markets which is trading the most volatile these days and providing good oppurtunity for traders both on long and short side.
Bullions - gold and silver looks mildly weak for the coming session, base metals - copper , zinc , alumunium could attract buying along with crude and natural gas.
Monday wealth creators
Buy copper , crude , natural gas
Sell gold and silver
Buy nifty and bank nifty
Fii and jackpot - buy Mcmillan india , gpil , adani ent
Fo and cash - buy cesc and torrent power
Double bumper options - buy dlf 200 ca , mahindra and mahindra 1250 ca
All the calls given on friday zoomed and created wealth in tonssss
The markets continued its deceptive mode and traded volatile more most of the day and closed negative for the week right on the support levels mentioned.
Technically the markets are just on supports and could bounce in the coming sessions.
However on the lower side good supports exists around 7490 levels whereas stiff resistance is viable around 7675 levels where some selling pressure could exist.
Fundamentally In India, it is the government that decides how much it is going to borrow. This amount of borrowing in turn will determine the increase in the quantity of money. Thus, unless the government gets a grip on its own finances, the money supply will go on increasing. Short-term measures like tinkering with customs/excise duties and imposing the Essential Commodities Act on speculators will not solve the problem. The RBI governor Raghuram Rajan has quite rightly stated that India must solve this structural inflation problem as soon as possible. Otherwise, the cost of living for the common man will keep increasing year after year. Even corporates will not be spared. Structural inflation tends to last across the entire economic cycle. During periods of high GDP growth, even firms with poor pricing power will do well.
However, when the down turn hits, only the most cost efficient firms with strong pricing power will survive to create long term wealth. So far the Modi government has shown its intent to control spending but we haven't seen many concrete measures being implemented. History will remember the previous UPA government as a failure on the inflation front. We certainly hope that this government's legacy does not end up the same way.
Coming to the commodity markets which is trading the most volatile these days and providing good oppurtunity for traders both on long and short side.
Bullions - gold and silver looks mildly weak for the coming session, base metals - copper , zinc , alumunium could attract buying along with crude and natural gas.
Monday wealth creators
Buy copper , crude , natural gas
Sell gold and silver
Buy nifty and bank nifty
Fii and jackpot - buy Mcmillan india , gpil , adani ent
Fo and cash - buy cesc and torrent power
Double bumper options - buy dlf 200 ca , mahindra and mahindra 1250 ca
All the calls given on friday zoomed and created wealth in tonssss
