morning thoughts...

The markets traded in a tight range on the ist day of the trading week ahead of the monetary policy.

Technically the markets will stay subdued until the policy is out and volatility is expected.

However ,with the economy coming out of the woods, some well connected infra companies with highly stressed balance sheets are again approaching Public sector banks for more capital. What is worse is that these are being entertained with Public banks having limited say in such decisions. A case in point is SBI's US$ 1 bn line of credit to Adani Group (that had been facing severe debt and financing issues) for a controversial Australian project. Meanwhile, it is the other stakeholders that are bearing the ultimate risks. 

Now that the growth in the economy is expected to ride on the infra boom, it is time to fix the issue of crony capitalism. Indian promoters who have failed to honor their commitments in the past should be questioned and denied the right to access cheap capital. Investors too should avoid placing blind bets on infra theme. Instead, they should be discreet, follow bottom up approach and select only the firms with efficient, ethical and responsible managements. 

Indian economy is witnessing a wave of optimism like never before. Despite no clear signals, no one wants to spoil the party. A case in point is GDP forecasts by the economists. Despite a sequential slowdown in the economic growth, economists are willing to stick to the full year forecasts. Lower inflation and rate cut expectation have taken attention off the fact that despite the decline in oil prices and lesser subsidy expenses, India's fiscal deficit has already reached about 83% of the annual target. Further, before this growth materializes, Indian economy has some herculean challenges to face. 
As mentioned above, the deteriorating quality of bank assets is one of the prime concerns. And this is just one of the many factors that need to be watched. Others being exchange rates and crude prices, something that will be out of our control but will have significant influence on the course of economic recovery. When everybody has put on rose tinted glasses, this is exactly the time investors should be cautious and focus on fundamentals and valuations rather than the broad economic recovery theme. 

Astrologically Mars has transited to Capricorn , which is its sign of exaltation. It will stay there till January 4, 2015. Capricorn is an earthy sign and Mars too represents immovable assets of a native. It also represents heavy machinery and heavy vehicles. Capricorn is ruled by Saturn along with Aquarius Mars will be transiting in the stars of Sun , Moon , and Mars. Let’s see what effects it may bring in general. Those who are running Dasa, Bhukti, or Antra of Mars will be more affected, others not like that.

Last month of the year to be highly deceptive for equity and commodity markets , on november 2 and 14 we had pre intimated about new lows in commodities and nifty targets.

Now get advance nifty , bank nifty and commodity trap targets

www.astroeyes.blogspot.in

Yesterday’s calls sent

Double Bumper Ongc  380 pa – buy at cmp 14 sl 11 targets 23 – went 23.70

Double Bumper Hul 800 ca – buy at cmp 12 sl 9 targets 25 – went 30.90

Jackpot Strides arcolabs – buy at cmp 850 sl 835 targets 900 – booked at 895

Convert  10k into 30k Titan 400 ca – booked profits at 12 – long from  3.25

Pfc – buy at cmp 314 sl 312 targets 320 – hit sl

Jp associates – sell at cmp 29.50 sl 29 targets 31 – hit sl

Berger paints – buy at cmp 418 sl 405 targets 440 – went 452

Bharti airtel – sell at cmp 384 sl 387 targets 375 – went 376

Gold Mcx – buy at cmp 25485 sl 25350 targets 25700 – booked profits at 25637

Silver Mcx – buy at cmp 33662 sl 33470 targets 34200 – booked profits at 34127

Copper Mcx – buy at cmp 393.50 sl 391 targets 398 – booked at 397

Crude Mcx – buy at cmp 4023 sl 3985 targets  4125 – booked profits at 4105