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Tuesday, March 11, 2008

The Fire************************
NEW INNINGS & NEW WINNINGS

Decoupling has not happened. This is impossible however this terminology will be used as and when it is useful for the market makers. Even in the past when market got corrected in the P note issue; there was a link but though with passage of time the same got diluted and market started rising.

MUTUAL FUNDS COULD SAVE THE MARKET

Similarly the coupling issue has been used by the system makers at a perfect time. You must be remembering my old story of Ballard estate. Yes, the lollypops are thrown and then you are being pushed to wall and looted at gun point. Market place is not indifferent. An amount of Rs 90000 crs cash equivalent to 3 times of the entire Open interest in stocks of Rs 29000 crs was available. And if the domestic funds known as representative of the retail investors had stepped out to save the carnage they could have done it. But the fact remains …..they had never told to you trade in futures, they had never told to over leverage and therefore there is no need for them to step out in the market for a bail out operations.

NEW VALUATIONS FROM APRIL’2008

In fact, they helped to flush out the system to remove the sick traders who want to earn their bread butter only through trading. Long term investor is never affected and will not be affected even if the valuations are corrected by 50% across the board. When the pain gallored from F & O side, they squeezed on cash stocks and margin trades. Now that the new books will be open only in April, the new innings will start from April in cash stocks and hence the valuations will improve overnight.

Till yesterday, there were no takers in Bombay Dying at 570 and today at 675 all were buyers’ only on the back of one news that promoters have acquired 818000 shares through open market. Fundamentals have not changed overnight neither investors have lost faith in the co with regard to valuation of Rs 2000 or Rs 5000. The fact remains everybody wants to reach fast by catching the VIRAR train.

The reason I am bullish is of long term trend is the fact that short term trend will always depend on positions such as overbought and oversold in the market. This way Cash level is depleted. Those who have shown courage to invest in falling market too used their 80% resources and now not in a position to increase size. This all gets reflected in the trading pattern where they try to square off even with very small profit.

Market will recover in due course of time backed by excess liquidity and fresh inflow. This will happen when market stabilises at some level which is a mass critical such as 5400. Therefore the range of 4600 to 5400 will be definitely considered as trading range and more slippage at 5200 to 5400 levels are not ruled out.

NO MARKET IS GOOD FOR CONFUSED TRADERS

We are trying to generate bold trading calls which are all optional and traders must take note of it. Only daring traders should act on it. Small traders and investors must wait till Nifty crossing 5500 where there valuations will help them rechristen their investments. At the same time their a special advise to few confused traders who are ready to bet anything for earning morally or immorally. I request them to stop following us as they do not require normal advice. Some confused traders even say that we are bullish since 6200 and market collapsed to 4600. What difference would have made if we would have removed all the calls on 22nd JAN 2008 at the lowest rates…? Even today the market has taken U turn from that levels and these traders are confused. They may exit even today and go short the way they want. It is certainly their frustration speaking because they are losing from either side. These kinds of traders are always going to lose in any market.

It could have been so easy for us to close all calls at one go from S C sections without bothering who is losing and who is gaining because this could have damaged only investors. We have held all along only one view and that is a long term view. We have seen so many corrections and so many rise of markets but our views remained one sided. Those who remained invested will always get good returns in course of time.

OUR 20% PROFIT BOOKING STRATEGY HAS SAVED OUR INVESTORS

27000 is not destiny. De coupling will become the order of the day. Global markets will recover. Markets will go in top gear once again. All these are predictable but one must have that vision to see. May be this is the reason that you become panicky when prices goes down. One has to understand that the correction has happened at 21000 levels and that too of the size of 30% and hence fall in prices was on cards. You must also remember that has taken enough care to make you realise profits in tons through the technique of 20% profit booking system which is unique and your balance investments are not enough to wipe off your capital built over years through this technique. We have also avoided generating calls in stocks which were the creation of the buzz and fast moving because you have lost heavily on those stocks and not I DEVELOP stocks.

The bottom line is that stop sending non sense emails which may prompt us to deactivate your account without giving any notice to you. Our all calls are of advisory nature and investors are required to use their own judgment. If we are not taking any credits why should we take even debits…? If you are not happy you MUST stop using our services come what it may….?

Nothing is so soothing to our self-esteem as to find our bad traits in our forebears. It seems to absolve us.

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