i Develop Stocks Advisory

Bears on top.... Admittedly bears have won another day where were successful in breaking the bulls back. More than 1 crs shares buying was seen in RIL and RPL in last 1 week yet the seller had more strength on the given day. Macquarie one foreign broking house has sold stocks worth Rs 500 crs plus today. Though few FII and foreign broking houses have gone on record saying that they will come forward for buying at 12000 it seems very clear that a borrow and sell strategy of the bears have succeeded in current scenario. The market has been falling since last Friday the day 11% inflation was announced and the fall is 12% over and above the 30% fall though the growth rate might taper by less than 10%. The same speed may take maximum of another 3 to 4 days to test 12000. I think if the next Govt which comes to power is not UPA then they should first think of band in share market first instead of price band mechanism in oil. We are for sure exposed that our systems are still easy to manipulate on either side and too at will. Congress very firmly announced to go ahead with Nuke deal as well as elections. This once again brings ruling party at a stage where LEFT will withdraw support yet Govt will not fall as S P will support. Political scenario is not that bad for market to over react. Oil may not hurt too long to India as RPL oil production will start soon and RIL will get enough gas to convert major oil consumption to gas. Market has been over reacting to all the negative things which have come to fore and at present the PE ratio has come to as low as 11. Even if economy is slowed a bit the valuations are already done with. FII which have been respected in India as God’s are the most dangerous animals to kill the country’s strength. If we are trader and prepared to take risk in equity then only trade in futures or just stay away from trading. I think we have been repeating this since 2005 that futures is not cup of tea of normal investors. Few bears are also circulating emails that Nifty is set to touch 2500. I am flashing this because those who still feel that it is bear run and Nifty is set to travel to that levels must join bears and start selling. They may sell IFCI till it become Rs 10. We have no problem. We are bull’s side and will remain so. Those who feel that they are misguided must exit from our site. In fact, I read an article today where it states the FII have sold stocks worth 7 bn USD by lending it to a cartel. The stocks were lying in P notes. If it true then we are most idiots to allow P note which is used for stock manipulations. Any way it is very difficult to prove unless Govt agencies step in to find out the truth. In any case, if it is true the covering will also be equally strong. At present traders are set their eyes on OIL God the LAGAAN way. It is not so simple. Whenever oil satta break it will be a vertical fall. It could take some more time before the speculators give up. Traders must go long only in selective of 4 to 5 scrips so that they can withstand the downside. While entering it they should know that market at present is being hammered intentionally be bears so that nobody dares to come back this market for next decade. If you survive the onslaught then you could able to participate in the upside rally. Those too only strong traders should do it. All broking houses will shut down very soon as the retail participation has come to naught. Only HNI who has not leveraged positions like IDEVELOP itself have survived in this market and will always survive. Wherever we find value we are still buyer and we will remain buyer. We always believe that buying should be done only in such times. Meanwhile value buying can be done in only in select counters where you feel that the returns will be nothing less than 10 times on DCF valuation. Follow your bliss and the universe will open doors for you where there were only walls.