September 2012

Trading levels 17th / 21st September 2012



The past week was very eventful … and every throw of dice was in the bull’s favour ….. and it all started on Thursday afternoon …. First the German constitutional court gave a favourable verdict … few hours later the government decided to bite the bullet by increasing diesel price and restricting the no subsidized LPG cylinders per household …. And later in the night, FED came out with a blazing BAZOOKA …which paled Mr Draghi.

All world markets roared in unison on Thursday late evening / Friday. As if this was not enough… Govt again dared the TMC / SP / BSP to pull down the govt when they announced FDI in retail / aviation / broadcasting on Friday evening …..

The backdrop was Supreme court ruling on Friday afternoon asking for a review of all coal block allocations … this really cornered the govt and it was clear that PM’s position had become untenable. SO HE HAS DECIDED TO GO DOWN FIGHTING …. Congress party is hoping that the allies will pull down the government and the PM will become a MARTYR.

THIS WAY THEY HAVE REALLY PREEMPTED BJP / SP / BSP AND TMC … ALL IN ONE GO …..

On Monday … we should open about 50/60 points higher and that may be a good point to cut your longs and wait for political drama to unfold.

Any further up-move will depend upon how SP / TMC play their cards. If they pull their punches, market will fly further up if there is strong FII buying.

I have bought 5000 Dec put around 115 as I want to give time for things to unfold. That risk is worth taking as risk reward will be simply great.

I can assure you that coming week is going to be very exciting for our market … thanks to drama in political arena.