October 2012

most calls r directional .... shud make life easy for you .....

Trading levels 15th / 19th October 2012



Last week was a sort of anti-climax to the previous week. SUPER THURSDAY effect kind of waned off. As expected and predicted by me over last weekend, global markets have started slipping. We had a very shallow ripple effect in our market resulting into closing below 5,700 level on nifty after scaling 5,800 the previous week.

Our market is still in a strong bull grip. FIIs are pumping tens of millions of dollars and FM is not leaving any stone unturned. Latest, is allowing LIC up to 20 % investment in any stock. This is effectively setting a floor for FMCG leaders like HUL and ITC. No wonder these stocks moved up further and supported the index.

What is pertinent is that in spite of that, NIFTY lost 70 odd points over the weak. I smell distribution at higher levels and a PUSH may be coming under some pretext in the coming two weeks, which will fill the gap - 5447 / 5535 - left on 14th September.

Both BSP and SP are now going to toy with UPA making some announcement or the other every few days. That was to be expected. All this effectively means that NO FURTHER PROGRESS WILL HAPPEN ON RECENT ANNOUNCEMENTS DURING WINTER SESSION OF THE PARLIAMENT.

It seems Romney has taken a lead over Obama in pre-poll surveys. What does that mean for our market …. Please read below ……

Jim Bianco says “ if Romney becomes President, the US Fed Chairman Mr Bernanke would be thrown out. And chances are that he would be replaced by monetary economist John Taylor.

It is worth noting that this gentleman has been a strong opponent of quantitative easing (QE). So now, what could happen if the US Fed is chaired by a hawkish monetary economist? He would quite likely bring an end to the money printing spree and low interest rates. “

If this really happens, we can have 500 point nifty fall in 2 weeks time.

WE MUST BE AWARE AND TAKE COGNIZANCE OF THIS EVENTUALITY AS THE EVENT IS JUST 3 WEEKS AWAY.                   

IF ROMNEY WINS ......

yesterday i read one article .......

i am just reproducing a para .... read carefully .....

If Romney becomes President, the US Fed Chairman Mr Bernanke would be thrown out. And chances are that he would be replaced by monetary economist John Taylor.

It is worth noting that this gentleman has been a strong opponent of quantitative easing (QE). Let's fit all the pieces together and we get an insightful picture. The US central bank's reckless monetary policies have flooded cheap money into the system. It is this easy money coupled with near-zero interest rates that have artificially pumped up the stock markets. Otherwise, why would markets rise despite weakening earning prospects? So now, what could happen if the US Fed is chaired by a hawkish monetary economist?

if bernanke is removed ..... our markets wl crash 500 ... repeat 500 nifty points in next 2/3 weeks ........

QE III wl be over and interest rates in US wl become more reallistic .... NO MORE EASY MONEY .......

even gold will go below 1500 dollars ... close rto 1250/1300 .......

keep this scenario at the back of yr mind .... EVENT IS JUST 4 WEEKS AWAY ........

infy has disappointed ... so scale down nifty levels by 25 points straight away .........

levels were sent before infy nos ......