morning thoughts...
Well the markets behaved and traded in a similar pattern as illustrated yesterday.
Today we move into an important event of monetary policy and the markets are likely to be volatile and jittery amidst oppurtunities for both long and short traders.
However , for an economy where around 70% of the banking system is accounted for by the Public sector, such incidents deal a harsh blow to the public confidence. Banking sector is the spine of an economy. A dent in the system can cripple the whole economy and as such poses a huge systemic risk. The ultimate victim of which will be the stakeholders such the depositors in the bank, shareholders and tax payers in the economy.
Hence, it is time to review the ownership patterns and Governance structures for Public sector banks and ensure market discipline. In a scenario when people who operate the system have dubious ethics, no overhaul in the capital adequacy norms, stress testing or improvement in the appraisal systems can make a difference. Unless urgent steps are taken, the very notion that government owned banks are safe for depositors will undergo a permanent change. And without depositor trust, the PSU banks that reach out to more than 2/3rd of the country's population, will find it impossible to help the economy grow.
Technically no much change is seen in the trading pattern and the markets are likely to move into a consolidation mode with 7550 levels as supports on the downside and 7780 as a stiff resistance to deal with.
Coming to the commodity markets we have been maintaining our bullish view on base metals and energy , however bullions will be volatile with two side movement in a range
www.astroeyes.blogspot.in
Yesterdays wealth creators
Jackpot and fii calls - garware offshore zoomed 46 rs , tv today zoomed 21 rs
Double and triple bumper options - idea 160 ca , cesc 660 ca , infosys 3400 ca tripled
Buy nifty gained 87 points , bank nifty rose 135 rs
Fo and cash calls - beml zoomed 6 % , hcl tech rose 47 rs , hpcl rose 19 rs
Gold gave 127 rs , silver 190 rs , zinc 3.50 rs , crude 68 rs
Well the markets behaved and traded in a similar pattern as illustrated yesterday.
Today we move into an important event of monetary policy and the markets are likely to be volatile and jittery amidst oppurtunities for both long and short traders.
However , for an economy where around 70% of the banking system is accounted for by the Public sector, such incidents deal a harsh blow to the public confidence. Banking sector is the spine of an economy. A dent in the system can cripple the whole economy and as such poses a huge systemic risk. The ultimate victim of which will be the stakeholders such the depositors in the bank, shareholders and tax payers in the economy.
Hence, it is time to review the ownership patterns and Governance structures for Public sector banks and ensure market discipline. In a scenario when people who operate the system have dubious ethics, no overhaul in the capital adequacy norms, stress testing or improvement in the appraisal systems can make a difference. Unless urgent steps are taken, the very notion that government owned banks are safe for depositors will undergo a permanent change. And without depositor trust, the PSU banks that reach out to more than 2/3rd of the country's population, will find it impossible to help the economy grow.
Technically no much change is seen in the trading pattern and the markets are likely to move into a consolidation mode with 7550 levels as supports on the downside and 7780 as a stiff resistance to deal with.
Coming to the commodity markets we have been maintaining our bullish view on base metals and energy , however bullions will be volatile with two side movement in a range
www.astroeyes.blogspot.in
Yesterdays wealth creators
Jackpot and fii calls - garware offshore zoomed 46 rs , tv today zoomed 21 rs
Double and triple bumper options - idea 160 ca , cesc 660 ca , infosys 3400 ca tripled
Buy nifty gained 87 points , bank nifty rose 135 rs
Fo and cash calls - beml zoomed 6 % , hcl tech rose 47 rs , hpcl rose 19 rs
Gold gave 127 rs , silver 190 rs , zinc 3.50 rs , crude 68 rs
