morning thoughts...
Markets returns after a long break and tends to be volatile in the coming sessions.
Technically the markets will remain in a range with 7900 as supports on lower side and 8075 as resistance on the upside on nifty front
However , While inflation levels seem to be cooling down in recent times, the fact of the matter is that until recently, interest on savings bank deposits or for the matter fixed deposits were not enough to fetch positive inflation adjusted returns. In other words, the real interest rates were negative.
And with most investors having burnt their hands in the stock market turmoil of 2008, a recent incident, it seems that retail participation in equities has only diminished since then.
These are the key reasons for financial savings by households to be deteriorating over the past few years. As compared to historical trend of having higher proportion of financial savings as compared to physical savings, the same has reversed substantially in recent times. The change in ratio of financial savings and physical savings in India in FY12 and FY13 is a strong indication of that.
However, even though the inflation trends are becoming more favourable as time is passing by, it seems that the RBI governor is in no hurry to lower interest rates.
Coming to the commodity markets bullions would provide an oppurtunity to create longs on the lower side , base metals and energy looks positive
Tuesday wealth creators
Cash - buy sparc , escorts
Fo - sell pfc , buy sail
Double bumper - buy petronet 180 pa , dlf 140 pa
Sell nifty and bank nifty on rise
Buy gold , silver , copper , natural gas
Markets returns after a long break and tends to be volatile in the coming sessions.
Technically the markets will remain in a range with 7900 as supports on lower side and 8075 as resistance on the upside on nifty front
However , While inflation levels seem to be cooling down in recent times, the fact of the matter is that until recently, interest on savings bank deposits or for the matter fixed deposits were not enough to fetch positive inflation adjusted returns. In other words, the real interest rates were negative.
And with most investors having burnt their hands in the stock market turmoil of 2008, a recent incident, it seems that retail participation in equities has only diminished since then.
These are the key reasons for financial savings by households to be deteriorating over the past few years. As compared to historical trend of having higher proportion of financial savings as compared to physical savings, the same has reversed substantially in recent times. The change in ratio of financial savings and physical savings in India in FY12 and FY13 is a strong indication of that.
However, even though the inflation trends are becoming more favourable as time is passing by, it seems that the RBI governor is in no hurry to lower interest rates.
Coming to the commodity markets bullions would provide an oppurtunity to create longs on the lower side , base metals and energy looks positive
Tuesday wealth creators
Cash - buy sparc , escorts
Fo - sell pfc , buy sail
Double bumper - buy petronet 180 pa , dlf 140 pa
Sell nifty and bank nifty on rise
Buy gold , silver , copper , natural gas
