October 2012

Trading levels 8th / 12th October 2012



Last week I was away so could not post.we had a SUPER THURSDAY event on 4th October. Media went ga-ga over it but I was not so much enamoured and called for profit booking on Thursday itself.

Most analysts are putting cart ahead of horse and it never works that way.

What government has done in last 4 weeks is the announcement of intent --- apart from FDI in retail - which does not need legislative approval. Everything else has to be cleared by parliament …. In fact both houses of the parliament. I don’t think this government will not even put to vote any of the bills during winter session – under some pretext or the other.

I get a feeling that there is a cold war between congress party and the government – between Sonia and Manmohan - and at the moment PM seems to be winning. He is supported by colleagues like Chiddu / Kamalnath / Anand Sharma et al while the old guard like Jayram Ramesh and a few others are on the side of Sonia. But Sonia camp will get even sooner than later.

It seems any further market rally will be only on the back of strong FII flows. The day that gush stops we will be sliding down again.

One thing is clear --- the Pm has given carte blanche to FM … to announce what it takes to shore up the market and till now he has come out with guns blazing … so much so that he has even indirectly hinted RBI what to do in the coming policy meet.

World markets are also losing upward momentum and lot depends of result season in US as well as at home. I will be extremely wary of taking further long positions till we have a clear break-out again.

Keep logged on to yahoo messenger for guidance related to investment levels on specific stocks. I will be putting some of those recommendations on my website also under messages tab as well.

I am available on yahoo messenger on most of the trading days and you can add me on your yahoo messenger. My yahoo id is madhavranade1