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Tuesday, June 3, 2008

Opportunity Vs Difficulty
Today was the last of the day vallan and as usual market was moving as per the positions in futures. Irrespective of fact that global markets were firm on the back of weak oil, Indian market had to behave due to vallan end consideration. Bulls had huge spread of 5000 Nifty though market oscillated between 4820 and 4960 creating a trading pattern at the moment.

One more vallan is passed by. Market was anticipating 4200 or 4300 which did not happen in May 08 and now we will see in June 08 what happens next….? For me the downside is very limited due to lack of positions as well as interest. At the same time the selling is getting absorbed across the board.

The consolidation may happen till time the selling continues and underlying factors do not change. It is well said that those who buy in most uncertain time gets maximum reward simply because the time can’t remain same. Only for punters the life is uneasy. For earning 1% return they enter in trading calls and finally get married with the position without capacity to take delivery. When market corrects their stop losses triggers.

Only in order to combat this we have been suggesting time and again remaining in B gr shares yet there are few investors who are tired of our B gr calls and wants to play only in A gr shares. Please you may try other technical calls on your own as we see no way to make intra day or trading money in A gr until Nifty crosses 5400. The depth of the market which is called heart of the share bazzar is missing post JAN crash and will resurface only when Nifty will cross 5400.

Kernex Micro, Bag Films, Swan Mills, Batliboi, Jeyswal Neco, MSP Steel, Bajaj Steel, SS Duncan, Minda, Network, Gremach, RDB, Vishnu all are multi baggers. For upper side movement 2 things are must one huge accumulation and second a trigger to surface. Smart investors are always those who buy in bad times like this and sell in good time when the stock rises. E.g when I started recommending Jeyswal at Rs 26 volumes were in thousands. By the time it reached Rs 40 volumes were in lacs. When it reached Rs 50 volumes rose to millions and when it will reach Rs 100 volumes will be crores. This clearly suggests the volumes theory is only created one.

Another important feature is that FII have been selling all along. In fact they have reduced their holding in Sensex co stocks from 23% to 19% that is the reduction of 4% but the moot question is who has bought this 4bn USD selling….? Retail has appetite and MF can’t be that aggressive as far India is concerned. The whole cornering is being done by one who controls the market. For that you need to know that FII can’t control Indian market though they create valuations for us. Now you will understand why I advocate sell when they buy and buy when they sell.

Market is full with gossip of vertical fall in stock market in June now instead of May. Reason again oil, inflation, monsoon, political instability, N Deal etc. May the event could not happen as operators were on holiday and they will be back in June therefore the activity will start in June. Good, I can ony say LAGE raho….we need this kind of thinking when nobody owns any stock….?

The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty. I am born optimist and try to see how to leverage my gains out of every opportunity.

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