Archive for June 2011



A FANTASTIC WEEK FOR THE MARKET SO FAR

Written by HARIKRISHNAN.T
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In the previous post I mentioned that if the market crossed the 5530 level, it can go up to 5630 level depending on the economic and political news.

The same thing happened this week. The strong global situation, low crude oil price, positive steps taken by the Government to control Inflation etc helped Indian markets in a positive way.

Today Nifty closed at 5647.40, 46.95 points in green. I think this is the best level of booking your profits, because market will be in the 5200-5600 range at least for the next 3 to 4 months.

See the percentage change of various sectors in the June series.


So expect a correction soon.........Book your profits.............Buying levels for next week will be published in the next post.

Regards Hari " लोका समस्ता सुखिनो भवन्तु " 



BEST BUYING LEVELS FOR THE COMING WEEK

Written by HARIKRISHNAN.T
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I think the positive movement of Indian market will depend on the following things

1) Crude oil price
2) Positive news about monsoon
3) Positive news from political side.
4) Inflation
5) Fiscal deficit (The difference between total revenue and total expenditure of the government is termed as fiscal   deficit)
6) GDP(Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. It is often considered an indicator of a country's standard of living)

The fund flow from the FIIs will mainly depend on Interest rates, Inflation, negative issues coming from the political side etc. The important thing is that fund flow from FIIs to India will not depend on the global economic scenarios.

I think the moving range of market in the coming week will be between 5200 and 5600.

The immediate profit booking levels will be at 5530 and 5630.

If Nifty break the 5530 level, it can go up to 5630 level depending on the news from economic and Government side.

The following figure gives the buying level and immediate supports of some of the important stocks of various sectors. (Click on the image to get a clear view)

Regards Hari " लोका समस्ता सुखिनो भवन्तु "







A FANTASTIC FRIDAY FOR MARKET.........

Written by HARIKRISHNAN.T
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Sharp fall in crude oil price helped the market.

Sensex closed 513 points up at 18240.68 and Nifty closed at 5471.25, 151.25 points in green.

Positive global cues and the much awaited EGoM (Empowered Group of Ministers) meeting on fuel prices were some of the major triggers for the market.

Finance Minister Pranab Mukherjee has decided to up diesel prices by Rs 3 per litre while LPG rates have been raised by Rs 50 per cylinder excluding VAT.

Brent crude declined 6% yesterday as IEA (International Energy Agency) surprised energy markets by saying 60 million barrels would be released over 30 days to fill Libya gap.

The diesel price helped the following companies

ONGC closed at Rs.272.80, 3.12% up

IOC closed at Rs.336.90, 2.46% up

Bharat Petroleum Corporation closed at Rs.634.70, 2.84% up

Petronet LNG closed at Rs.143.95, 3.15% up

Hindustan Petroleum closed at Rs.392.60, 6.14% up

I think this positive rally will not continue further more. But within 6 months we can see Sensex at 21000 level.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "






NEW SENSEX CONSTITUENTS

Written by HARIKRISHNAN.T
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Sensitive Index (SENSEX) updated his 30 companies list by eliminating Anil Ambani's Reliance infrastructure and Reliance Communication. The new companies included in place of these are Coal India and Sun pharma.

The updated list is given below.

  1. Bajaj Auto Limited 
  2. Bharat Heavy Electricals Ltd. 
  3. Bharti Airtel Ltd.
  4. Coal India Ltd. 
  5. Cipla Ltd. 
  6. DLF Ltd. 
  7. HDFC 
  8. HDFC Bank Ltd. 
  9. Hero Honda Motors Ltd. 
  10. Hindalco Industries Ltd. 
  11. Hindustan Unilever Ltd. 
  12. ICICI Bank Ltd. 
  13. Infosys Technologies Ltd. 
  14. ITC Ltd. 
  15. Jaiprakash Associates Ltd. 
  16. Jindal Steel & Power Ltd. 
  17. Larsen & Toubro Limited 
  18. Mahindra & Mahindra Ltd. 
  19. Maruti Suzuki India Ltd. 
  20. NTPC Ltd. 
  21. ONGC Ltd. 
  22. Reliance Industries Ltd.
  23. State Bank of India 
  24. Sterlite Industries (India) Ltd.
  25. Sunpharma Ltd. 
  26. Tata Consultancy Services Limited 
  27. Tata Motors Ltd. 
  28. Tata Power Company Ltd. 
  29. Tata Steel Ltd. 
  30. Wipro Ltd.
Regards Hari " लोका समस्ता सुखिनो भवन्तु "



MAJOR SUPPORT OF NIFTY AT 5171.......INVEST CAREFULLY.....

Written by HARIKRISHNAN.T
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Indian equity benchmarks closed today about 2% below because of the  confusion regarding the Indo - Mauritius tax treaty.

The 30-share BSE Sensex fell 363.90 points or 2.04% to close at 17,506.63. The 50-share NSE Nifty dropped 108.50 points or 2.02% to end at 5,257.90.

Most of the experts are bearish on the market. So retail investors should be very careful in investing.

I think the major support level of will be at 5171. If the bearish trend continues, then it can go below 5100.

Shares of Reliance Industries Limited(RIL) extended its decline for the sixth straight session on Monday as selling pressure continued following the Comptroller and Auditor General (CAG) report which said the Oil Ministry and Director General of Hydrocarbon (DGH) have allegedly favoured the company.

Today RIL closed at Rs.833.25 (Rs.35.50 in red NSE)

Indo - Mauritius tax treaty also affected GIL in a negative way. Shares of GTL , formerly Global Telesystems, crashed 62% to close at Rs 127.80, its lowest closing in over five years. Shares of group company GTL Infrastructure closed at Rs 16.85, down 43.27% over the previous close.

I think investors can make investments in RIL in this range, because controversies will not affect the infrastructure of the company in the long term point of view. RIL has best fundamental side support.

I think tomorrow there will be a positive trend in market. Invest only in front line stocks. Otherwise retail investors will be in trouble.

Lets hope for the best.........

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



IS THERE A CHANCE FOR RECESSION AGAIN......??????

Written by HARIKRISHNAN.T
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Nobel prize winner Paul Krugman predicts that there is a chance for a recession again in America.

He says that the main reason for this is the policies taken by the Obama government is not up to the mark.

In USA the price for houses go down, Production rate decreases, Recruitment decreases.

Obama says that  the current problems in US economy is due to the competition with China.

Next important thing which may affect the European Economy is that Greece may default at any time.

In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant (condition) of the debt contract.

So if Greece became default, then the entire European Economy will face financial crisis. 

The after effect of that will affect US economy and of course our Indian Economy

If a country became International default, then the credibility of that country will go down.

Nobody will make investments in that country, nobody will sanction loan for that country. As a result of all these the entire financial system of that country will go down.

Note that in 1990-91 the similar situation happened in India also. That time we solved the issue by taking loan from Bank of England by giving gold biscuits of RBI as security. 


That situation changed from 1991 on wards when the prime minister Narasimha Rao with finance minister Manmohan Singh introduced the New Economic Policy. 


Regards Hari " लोका समस्ता सुखिनो भवन्तु "