morning thoughts...
The markets corrected after a long time and many people panicked for the same , but one must keep in mind that markets cannot gain on everyday and a correction is health for the markets as it gives a base to the markets.
Once when the markets go up there comes many a targets for the sensex and nifty and a day it falls people start talking about bearish levels and lowest points for the markets , so the rationale is to keep away from media and news channels as they always misguide investors and traders.
Technically ,Any such correction is health and a boon for the markets for higher and stronger move ahead.
2014 so far has proven to be an optimistic year for Indian stock markets as the Sensex has gained around 27%.
Not surprisingly, once the rally got underway, predicting the next level that the Sensex would touch became a fad for the media and fund managers.
The rationale is as follows, An asset's risk premium in some sense is a form of compensation for investors who are willing to take on the extra risk. Now equity is perceived as the riskiest asset class. So when people buy stocks at higher prices expecting more returns, they believe that the risk is lower and so the premiums accordingly have come down. But the riskiness of the asset class itself is ignored. So based on this, there are views that stock markets are due for a correction.
One of the primary reasons that fuelled the rally in the first place was that Indian economy is poised for a recovery and that the infrastructure sector will receive a considerable boost. Basically, the focus of the new government will be on growth and development. So it goes without saying that should the government fail to deliver on this front, markets are bound to correct.
However , At the ground level, there is still quite a lot of work to be done and some problems that have plagued India for the last couple of years have not entirely gone away. For instance, consumer inflation is still high. Industrial production still has to grow meaningfully. And investments in capital goods and projects have still to take off in a big way.
So if the markets have rallied largely on the basis of expectations and sentiments, then it is hardly surprising that there will be some form of a correction. But this should not be viewed negatively, we believe.
That is why we believe that the growth story for India very much exists. What investors need to keep in mind therefore, is that should the stock markets correct, it could be a good opportunity to buy stocks of good quality companies, which at the current levels are probably too expensive to buy.
Astrologically we have alerted at the very beginning of the month of the change of mars and sun and big surprise and deception in month of september
www.astroeyes.blogspot.in
Yesterday's calls sent
Copper Mcx - buy at cmp 422 sl 421 targets 426 - booked at 425
Nifty - sell at cmp 8049 sl 8078 targets 7975 - went 7952
Bank Nifty - sell at cmp 16210 sl 16300 targets 15900 - went 15870
Jackpot Option Hdil 90 pa - buy at cmp 1.50 sl 0.95 targets 5 - went 6.30
Fii Mastek - buy at cmp 285 sl 276 targets 310 - went 321
Double bumper option Pfc 250 pa - buy at cmp 5 sl 3 targets 12 - went 13.90
Idfc - buy at cmp 147 sl 145 targets 152 - hit stoploss
Dlf - buy at cmp 175 sl 173 targets 182 - hit stoploss
The markets corrected after a long time and many people panicked for the same , but one must keep in mind that markets cannot gain on everyday and a correction is health for the markets as it gives a base to the markets.
Once when the markets go up there comes many a targets for the sensex and nifty and a day it falls people start talking about bearish levels and lowest points for the markets , so the rationale is to keep away from media and news channels as they always misguide investors and traders.
Technically ,Any such correction is health and a boon for the markets for higher and stronger move ahead.
2014 so far has proven to be an optimistic year for Indian stock markets as the Sensex has gained around 27%.
Not surprisingly, once the rally got underway, predicting the next level that the Sensex would touch became a fad for the media and fund managers.
The rationale is as follows, An asset's risk premium in some sense is a form of compensation for investors who are willing to take on the extra risk. Now equity is perceived as the riskiest asset class. So when people buy stocks at higher prices expecting more returns, they believe that the risk is lower and so the premiums accordingly have come down. But the riskiness of the asset class itself is ignored. So based on this, there are views that stock markets are due for a correction.
One of the primary reasons that fuelled the rally in the first place was that Indian economy is poised for a recovery and that the infrastructure sector will receive a considerable boost. Basically, the focus of the new government will be on growth and development. So it goes without saying that should the government fail to deliver on this front, markets are bound to correct.
However , At the ground level, there is still quite a lot of work to be done and some problems that have plagued India for the last couple of years have not entirely gone away. For instance, consumer inflation is still high. Industrial production still has to grow meaningfully. And investments in capital goods and projects have still to take off in a big way.
So if the markets have rallied largely on the basis of expectations and sentiments, then it is hardly surprising that there will be some form of a correction. But this should not be viewed negatively, we believe.
That is why we believe that the growth story for India very much exists. What investors need to keep in mind therefore, is that should the stock markets correct, it could be a good opportunity to buy stocks of good quality companies, which at the current levels are probably too expensive to buy.
Astrologically we have alerted at the very beginning of the month of the change of mars and sun and big surprise and deception in month of september
www.astroeyes.blogspot.in
Yesterday's calls sent
Copper Mcx - buy at cmp 422 sl 421 targets 426 - booked at 425
Nifty - sell at cmp 8049 sl 8078 targets 7975 - went 7952
Bank Nifty - sell at cmp 16210 sl 16300 targets 15900 - went 15870
Jackpot Option Hdil 90 pa - buy at cmp 1.50 sl 0.95 targets 5 - went 6.30
Fii Mastek - buy at cmp 285 sl 276 targets 310 - went 321
Double bumper option Pfc 250 pa - buy at cmp 5 sl 3 targets 12 - went 13.90
Idfc - buy at cmp 147 sl 145 targets 152 - hit stoploss
Dlf - buy at cmp 175 sl 173 targets 182 - hit stoploss
