morning thoughts...
As said and expected the markets achieved our logical targets of 8050
Technically What has been driving markets the past few months? Well... a bunch of factors. One of which includes a favourable outcome of the general elections; a result of which all concerns over political instability disappeared. Then, we have the liquidity factor. Cheap money across the world is finding its way to riskier markets. Thirdly, the improving sentiments are expected to kick start the economy in terms of investments as well as increase in outputs, which eventually are expected to trickle down to companies in the form of higher earnings. Not mention the fact that the favourable economic indicators such as lower oil prices and its favourable effect on the deficits of the country. Today's chart of the day show cases the yearly returns of the Sensex. And it seems that the market performance in the year till date has been very strong, the highest level since 2009.
However , With broader valuations hovering above the long term averages, it should make investors quite jittery about entering the markets at current times. However, from what it seems that is not particularly the case. This we say because the net investments by domestic institutional investors have turned positive - first time since February this year - in the month of August. This is a sign that retail investors are re-entering the markets. Whether they have got their timing wrong is difficult to comment on at the moment. But going by history, returns from investing in times of above average valuations have been much less than compared to investing in periods of uncertainty.
Yesterdays calls sent
Double bumper option - maruti 2800 ca , hero moto 2700 ca quadrapled
Buy gold gave 67 rs , silver 245 rs , copper 3 rs , crude 56 rs
Buy nifty gave 87 points , bank nifty 178 points
Fii and jackpot - abb gave 115 rs ,reliance infra gave 49 rs , indusind bank 37 rs
Cash and fo - escorts gave 16 rs , upl gave 15 rs , beml hit upper circuit
As said and expected the markets achieved our logical targets of 8050
Technically What has been driving markets the past few months? Well... a bunch of factors. One of which includes a favourable outcome of the general elections; a result of which all concerns over political instability disappeared. Then, we have the liquidity factor. Cheap money across the world is finding its way to riskier markets. Thirdly, the improving sentiments are expected to kick start the economy in terms of investments as well as increase in outputs, which eventually are expected to trickle down to companies in the form of higher earnings. Not mention the fact that the favourable economic indicators such as lower oil prices and its favourable effect on the deficits of the country. Today's chart of the day show cases the yearly returns of the Sensex. And it seems that the market performance in the year till date has been very strong, the highest level since 2009.
However , With broader valuations hovering above the long term averages, it should make investors quite jittery about entering the markets at current times. However, from what it seems that is not particularly the case. This we say because the net investments by domestic institutional investors have turned positive - first time since February this year - in the month of August. This is a sign that retail investors are re-entering the markets. Whether they have got their timing wrong is difficult to comment on at the moment. But going by history, returns from investing in times of above average valuations have been much less than compared to investing in periods of uncertainty.
Yesterdays calls sent
Double bumper option - maruti 2800 ca , hero moto 2700 ca quadrapled
Buy gold gave 67 rs , silver 245 rs , copper 3 rs , crude 56 rs
Buy nifty gave 87 points , bank nifty 178 points
Fii and jackpot - abb gave 115 rs ,reliance infra gave 49 rs , indusind bank 37 rs
Cash and fo - escorts gave 16 rs , upl gave 15 rs , beml hit upper circuit
