i Develop Stocks Advisory

Bulls Vs Bears... USD has started rising against YEN and crossed major barrier of 102. Very soon Rupee too will rise to Rs 39 levels which will give much cushion to overseas investors. It is true that overseas investors too have lost confidence in fate of global slow down but for sure they do not want to leave India. The bear cartel consists of at least 15 hands which include few overseas players and few die hard market drivers. Few of them are always known for the market for their acumen in short selling because they were considered born bears. But for sure there are few player who are bulls turned bears in the phase. As explained earlier in this column the bears continue to hold that India story is over and try to sell at every rise. This is the precise reason after opening up by 600 points market collapsed yesterday and there was selling of more than 5 mn Nifty on net basis. Similar was the case today also. Therefore it is well accepted that bears are heavy as of now on Bulls. They desire to take the Nifty to 4400 levels once again and all efforts are being made in those directions. Bulls have made plans to take Nifty back to 5300 in this vallan that is what I understand and it is really to be seen whether Bulls succeed on not. For sure Bulls efforts are way short of Bears efforts on a given day. They will have muster larger resources if they want to take head on with FII. I think this situation is seen for the first time in last 5 years where their calculations are failing. In any case, a bad market is always a NATIONL loss. Typically India is really hollow market though on paper we are the best. We can compare with Indian cricket team one day make a triple century and on next all out 76. Here when the bulls take charge they control the market through just money power whether fundamentals justify or not. We then assign these to liquidity. When bears take charge similar situation is arising on the other side. For Govt and regulator, the broader idea works such as market is discovering price and global factors are working etc. They have to follow their own standards. But at the same time the market is place where some player should try stabilising the market. All domestic funds put together has capacity to take head on with the FII but the quality of FII speed and execution is just unmatched and will never be matched. Therefore the volatility will always remain. It is sooner the better that investors learn and understand this and chose their own stocks. I have never heard a diamond trader buying Minda or Stelco for that matters but they have bought Educom at Rs 3000, they have bought Century at 1300 all because they have been taught to buy A gr shares. Yes, there is exit route available but certainly at loss. Only at I DEVELOP you have opportunity to know the stock even when the fundamentals are under preparation. Though it has long gestation time but for sure the end result is good. The true test of character is not how much we know how to do, but how we behave when we don't know what to do.