There are no signs of overheating in the Indian economy and the government can easily finance a widening current account deficit, a top adviser said on Monday.
Montek Singh Ahluwalia, the deputy chairman of the Planning Commission, told reporters that the widening current account deficit was rather a sign of strong recovery.
We all are receiving SMS all through the last month from known and unknown sources that market will crack sooner than later. In fact last week almost all TV channels, Web analysts are more than 100% certain that soon we will see blood on the Dalal Street. After that what happened we all know. Markets staged a smart recovery proving once again our stand that markets are supreme. No human or computer can predict its’ move.
Markets once again vindicate our stand that many millions and billions will be generated in the Indian stock market if you are on the right side. Let’s discuss in detail. Indian micro story is good. The country has a large collection of world class companies and a well educated English speaking and IT enabled workforce. Relatively stable financial institutions and a world known democracy are added feathers in India’s cap. India can achieve pretty impressive growth rates over the next 3-5 years barring any political shocks. Having seen India’s surprising 8% GDP performance amidst gloomy world economy, there is a rush of economic forecasts by financial institutions that India is on the verge of unprecedented multi decade growth.
Well the collapse of countries like USA, Dubai, Greece will move investors worldwide to invest in high return Asian countries. India is in the top of the list after China and Brazil.
But the ride from hereon will not be smooth. Be prepared for a roller coaster ride. In our opinion there is a bull market taking shape anywhere in the world right now, there is a multi decade bull market making its presence felt VERY STRONGLY. Well the economic data released or to be released will stand testimony to the fact. China’s GDP growth is staggering 19%. Other emerging markets data is also positive surprise. Us trade data is also encouraging.
But always remember my final words DEAR INVESTORS there is no shortcut in the share market.
The Nifty closed at 5607.85. Nifty future (Sep.) closed at 5596.65 i.e. at a discount of 11.20 points vs. 12.35 points
and added 83100 shares in open interest.
The Nifty future (Oct.) closed at 5601.35 i.e. at a discount of 6.50 points vs. 6.55 points and added 111600 shares
in open interest.
Interpretation: The Nifty future prices ended flat with an overall addition of open interest and slight increase in
the cost of carry, this is an indication of some longs being built at lower levels.
In September Series maximum addition of open interest on the calls front is existent at strike price of 5600 & 5700 indicating it as Resistance zone on
the upside whereas on the put options front we have seen maximum addition of open interest at strike price of 5400-
5500 indicating it as immediate support zone on the downside.
- On the call options front we have seen addition of open interest in September series at strike price of 5700 whereas
some shredding was witnessed at 5600 today.
- On the put options front we have seen addition of open interest in September Series at strike price of 5500 and 5600.
YOU will agree with me that during last few days almost everyone except some stock market learners like me are of the opinion that market should correct from here. Every other day someone somewhere coin a new reason for the market to crack. But the markets are refusing to correct in any meaningful manner. May I ask them why market should correct. All are waiting markets to come down to invest. Is it so simple? Markets are market, have their own logic and move.
Most important is stable political scenario and willing government. Now political situation worldwide are relatively stable. World-over Governments are more than willing to fix financial problems. Economic data worldwide are showing sign of improvement. Dollar index is also showing signs of fatigue around 82-85, now overdue for correction. Commodity prices and crude are gaining strength showing pick-up in economic activity.
Do not believe technical levels like 5480, 5560 or 5620. These levels are created by software created by those who never invested a single paisa in stock market. In my opinion no human or computer in this world can predict the market.
Take my words 2010 will be the year of BULLS they will not let the bears walk away easily. To trade profitably, forget the direction of the market focus on the midcap space. My dear investors this is not important also what is important to pick a stock at right price at right time and the most important exit at the right place.
RESISTANCE | SUPPORT
790 757.65
looking bearish in the coming trading session one can go
for short position below 757.65 else above 790 it would be in an uptrend.
A.C.C.
RESISTANCE | SUPPORT
888.40 860
for this stock one may go for buying on dip strategy for
the targets of 882,800. the stock is looking bullish in near
term.
AXISBANK
RESISTANCE | SUPPORT
1385 1343
for this stock one may go for buying on dip strategy for
the targets of 1400/1428. the stock is looking bullish in
coming trading session.
Nifty Closed Above 5550 After 2.5 Years
National Stock Exchange’s Nifty closed at 5540.20, up 61.05 points or 1.11 per cent. The 50-share index hit a high of 5544.70 and low of 5478.10.
Nifty closed at 5479.15. Nifty future (Aug.) closed at 5483.05 i.e. at a premium of 3.90 points vs. 10.65 points
and shredded -215700 shares in open interest.
The Nifty future (Sep.) closed at 5487.35 i.e. at a premium of 8.20 points vs. 18.35 points and added 964000
shares in open interest.
Interpretation: The Nifty future prices with good gains along with an overall addition of open interest and
decline in the cost of carry, this is an indication of some shorts being built at higher levels.
Options – On the call options front we have seen shredding of open interest in August series at strike price of 5500 and 5600.
On the put options front we have seen addition of open interest in August Series at strike price of 5500, 5400 and
5200.
In August Series maximum addition of
open interest on the calls front is still existent at strike price of 5500 & 5600 (though some shredding was seen today)
indicating it as Resistance zone on the upside whereas on the put options front we have seen addition of open
interest at strike price of 5400 indicating it as immediate support on the downside.
The following stocks look bullish on the charts based on their close on 13TH AUGUST 2010. These indicators generally yield very good dividends if traded accordingly. However, it is important to appreciate that “NEVER TRY TO CATCH HOLD OF A FALLING KNIFE”.
Hence, buy only if the stock is rising and as close to the EOD price of the previous day. Buying in at the higher end of spectrum will incur lesser profits and may even result in a loss if you are trading intraday. Hence, keep the entry levels in mind and book profits at levels of comfort or at least trail stop loss.
The bullish stocks for MONDAY, 7th AUGUST 2010 are
SAHARA HOUSING
PHOENIX LAMPS
DS KULKARNI
KOTAK MAHENDRA BANK
PHOTOQUIP
ERA INFRA
STATE BANK OF MYSORE
DHAMPUR SUGAR
AARVEE DENIMS
DELTON CABLES
BALAJI TELEFILMS
ASTRO VIEW 16/08/2010
=====================
MOON SAIL IN SUWATHI STAR ( RAAKU SAARAM )
UPTO 12.45PM AND IN VISAKAM ( GURU SAARAM )
THIS IS THULAM SIGN WHICH IS
EIGHTH PLACE FROM GURU AND LEVENTH PLACE
FROM RAAKU. NEGATIVE DAY. MAY SEE PULL BACK
IN CLOSING HOURS.
16/08/2010 BIRTH NO.7 FATE NO.9
———————————–
POSITIVE FOR PHARMA AND NEGATIVE FOR MARKET.
OUT PERFORMERS FOR 16/08/2010
——————————-
PHARMA, BANKS, AND REALITY.
UNDER PERFORMERS FOR 16/08/2010
——————————–
PSU AND ALL LARGE CAPS.
LAGNAA TIMES DURING TRADING HOURS
————————————
OPENING ..to.. 11.01am KANYA NEGATIVE
11.01am ..to.. 01.13pm THULAM POSITIVE
01.13pm ..to.. 03.26pm VIRICHIKAM NEUTRAL
03.26pm ..to.. CLOSING THANUSH NEUTRAL
LAGNA TIMES CALCULATED WITH MUMBAI SUNRISE.
TECHNICAL VIEW
================
LAST CLOSE@5452 (+36 POINTS)
LAST HIGH@5476 LOW@5415
WEEKLY HIGH@5492 LOW@5370
5DMA@5447
20DMA@5426
50DMA@5325
200DMA@5137
5-DAY RSI 56 AND 14-DAY RSI 57.
INDICATES NO SIGNALS.
WEEKLY KEY RESISTANCE@5533/5622
WEEKLY KEY SUPPORT@5355/5222
EXPECTED RANGE FOR 16/08/2010.
5377-5488
RESISTANCE FOR 16/08/2010….. 5466/5488
SUPPORTS FOR 16/08/2010….. 5422/5400/5377
ASTRO VIEW 16/08/2010
=====================
MOON SAIL IN SUWATHI STAR ( RAAKU SAARAM )
UPTO 12.45PM AND IN VISAKAM ( GURU SAARAM )
THIS IS THULAM SIGN WHICH IS
EIGHTH PLACE FROM GURU AND LEVENTH PLACE
FROM RAAKU. NEGATIVE DAY. MAY SEE PULL BACK
IN CLOSING HOURS.
16/08/2010 BIRTH NO.7 FATE NO.9
———————————–
POSITIVE FOR PHARMA AND NEGATIVE FOR MARKET.
OUT PERFORMERS FOR 16/08/2010
——————————-
PHARMA, BANKS, AND REALITY.
UNDER PERFORMERS FOR 16/08/2010
——————————–
PSU AND ALL LARGE CAPS.
LAGNAA TIMES DURING TRADING HOURS
————————————
OPENING ..to.. 11.01am KANYA NEGATIVE
11.01am ..to.. 01.13pm THULAM POSITIVE
01.13pm ..to.. 03.26pm VIRICHIKAM NEUTRAL
03.26pm ..to.. CLOSING THANUSH NEUTRAL
LAGNA TIMES CALCULATED WITH MUMBAI SUNRISE.
TECHNICAL VIEW
================
LAST CLOSE@5452 (+36 POINTS)
LAST HIGH@5476 LOW@5415
WEEKLY HIGH@5492 LOW@5370
5DMA@5447
20DMA@5426
50DMA@5325
200DMA@5137
5-DAY RSI 56 AND 14-DAY RSI 57.
INDICATES NO SIGNALS.
WEEKLY KEY RESISTANCE@5533/5622
WEEKLY KEY SUPPORT@5355/5222
EXPECTED RANGE FOR 16/08/2010.
5377-5488
RESISTANCE FOR 16/08/2010….. 5466/5488
SUPPORTS FOR 16/08/2010….. 5422/5400/5377
WEEKLY NOTE TO TRADERS
———————-
1. AS SUN ENTER INTO SIMHAM POSITIVE FOR PSU
STOCKS FROM TUESDAY 2.10PM.
2. AS SUN AND PUTHAN SAIL IN SAME STAR POSITIVE
FOR MID-CAP PSU BANKING STOCKS. BUT NEGATIVE FOR
TELECOM AND BROKING FIRMS.
3.AS SUKRAN IN KANYA ( DECLINE HOME ) AND KEEP
RISHABA NAVAMSHA ( OWN HOME ) UPTO WEDNESDAY
CLOSING, REALITY STOCKS CAN RALLY UPTO WEDNESDAY
AND THEN START TO CORRECT.
4. AS SEVVAI ( MARS) IN KANYA THIS WEEK ALSO
NEGATIVE FOR POWER AND INFRA STOCKS.
5. AS SATURN SAIL IN GOOD HOME POSITIVE FOR
STEEL, OIL, AND AUTO STOCKS. BUY IN DIPS.
6. AS GURU IN VAKRAM AT ANY TIME BANKING STOCKS
MAY START TO CORRECT. SHORT AFTER GETTING
CLEAR REVERSAL TREND.
CAG, which went into the $8.8 billion cost incurred by Reliance in producing gas from the nation’s largest field, had examined and received replies on its audit comments from the Mukesh Ambani-led firm. The CAG plans to complete the entire audit process, which will include incorporating oil ministry’s comments on its findings, by November.
CAG started audit of Krishna Godavari basin D6 field on December 21 last year. It, however, faced some difficulty in accessing new documets it sought after completing the first round of scrutiny. But within a month, RIL complied and the premier auditor made good progress thereafter.
RIL had on August 17 agreed to an audit by CAG but the nation’s premier auditor could put its house in order for the audit only by December.
CAG’s scope of audit of PSC in respect of the block KG-DWN-98/3 (KG-D6) awarded to RIL, for two financial years – 2006-07 and 2007-08, with access to records of previous years linked to transactions of these years.
Silver futures for September delivery ended 0.8% lower at $18.28/oz. Investment demand for silver also fell. Stronger dollar resulted further downside.
The dollar index traded with marginal losses in Asian and European hours but, reversed to firm gains in late US hours, following stronger than expected growth in US service sector (ISM non-manufacturing composite). The dollar closed 0.44% higher at 80.952 against a basket of the world’s six major currencies.
Equities remained lower in Asia as Japanese exporters led the declines. European markets saw some improvements after a lower opening while the US closed higher on positive economic data. The benchmark MSCI world index for stocks closed marginally down.
Investment demand for silver also fell as Ishares silver trust lowered its holdings to 9181.48 MT yesterday.
MCX silver futures for September month were down by 0.62% to close at Rs. 28,961/kg.
Silver futures are trading slightly higher at $18.32/oz in Asian hours on Comex’s globex platform. Silver may recover after yesterday’s losses which it incurred despite gains in bullion and base metals. Improved economic sentiments on account of positive jobless reports expected from the US may increase the demand for silver. Moreover, firm equities in Asia may also support silver prices.
Gold prices advanced towards its biggest weekly gains in two months as traders await a key US data for more clues. Gold for immediate delivery was seen trading at $ 1195.43 an ounce at 12.00 noon Singapore time while U.S. gold futures for Decemberdelivery was at $1198 an ounce. on the comex division of Nymex.
Analysts said the US data on employment is likely to show negative results that could benefit the precious yellow metal to end the week on a high note. Meanwhile ETF holdings rose for the first time since mid-July on a weak dollar and high wheat prices that triggered concerns of inflation worries.
The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings rose to 1,282.746 tonnes by August 5 from 1,281.834 tonnes on Aug 4. The holdings hit a record 1,320.436 tonnes on June 29. Silver for immediate delivery was little changed at $18.345 an ounce and platinum traded at $1571.90 an ounce after falling as much as 0.6 per cent to $1,563 an ounce.Palladium declined 0.3 per cent to $495.75 an ounce
On Thursday, Gold extended its gains to settle higher for a seventh straight day as physical buying on China’s decision to expand its market for the metal and weak U.S. jobs data made it an attractive safe haven. Gold for December delivery,the most actively traded contract, settled up $3.40, or 0.3%, at $1,199.30 an ounce
