Global equties are gearing up for another dreadful crash. While Asian markets are trading deep in the red, US & Europen futures continue to tumble. Singapore Nifty Futures are trading down 50 points.
We expect the markets to tumble this week too. While midcap story, which continued to be strong in the last 1 month despite of global meltdown will be hit the most in the next 1 week to 10 days. Mark these words.
Greece crisis is neglected by world markets till players switched positions. We mentioned many times to be extra catious and May will be the sell off month and here we go with a panic sell off.
It would be better for Individual investors to stay away from the markets. Bottompicking and cherrypicking are still not the right words to use in this market. Hang on and wait for the oppurtunity
JGS Investments is a home of expert stockmarket analysts, and premier source for technical analysts research and information on Indian Stock Markets.Just join us at Yahoo Messenger sheth_jg@yahoo.com OR Email at sheth_jg@yahoo.com
Monday, May 17, 2010
Friday, May 14, 2010
Bears to call the shots. Nifty falters again at 5200 levels
Bears are back. But panic selling seen earlier might be missing this time. Nifty faltered again at 5200 levels. Support of 5136 is holding from a big fall.
US Markets sold of in the last 2 hours after managing to stay flat for majority part of the session. Retail numbers were blamed for the fall. It is indeed interesting to note from the last 5 months upmoves in the US Markets are followed by low volumes where as the downdrives are accomopanied with massive volumes.
Indian midcaps are staying afloat, courtesy liquidity flows. We clearly mentioned many times in this column that most of the feelers indicate major FIIs were short in Nifty this month but midcaps continue to survive. We expect gush of selling in midcaps soon.
Euro is looking weak every passing day and is likely to continue the same for few more months. Gold is making new highs while Crude Oil continues to drop. We believe worst is yet to come for equities and this time there will not be a storm but a smooth fall
US Markets sold of in the last 2 hours after managing to stay flat for majority part of the session. Retail numbers were blamed for the fall. It is indeed interesting to note from the last 5 months upmoves in the US Markets are followed by low volumes where as the downdrives are accomopanied with massive volumes.
Indian midcaps are staying afloat, courtesy liquidity flows. We clearly mentioned many times in this column that most of the feelers indicate major FIIs were short in Nifty this month but midcaps continue to survive. We expect gush of selling in midcaps soon.
Euro is looking weak every passing day and is likely to continue the same for few more months. Gold is making new highs while Crude Oil continues to drop. We believe worst is yet to come for equities and this time there will not be a storm but a smooth fall
Thursday, May 13, 2010
Strong open on cards, Nifty to again meet Mr. Resistance (5200)
Indian markets are trading with extreme volatility. Yesterday is one such any trader wants to avoid unless he is on the right side. The trade was nothing short of a roller coaster. Stocks are likely to gap open to the upside on D-Street but one should clearly watch out for a Nifty level of 5200 for a break out to the upside on a closing basis.
It appears major FIIs went short in Nifty taking the feelers into consideration. The Euro aid is considered negative for Emerging markets like China, India and Brazil. As per their arguments stocks are expensive in the emerging markets.
Yesterday's IIP numbers were indeed disappointing. But one section of the analyst community argues that this will keep Mr. Subba Rao away from raising interest rates.
One should remember we are not out of woods and a trend reversal (if any) is expected today or tomorrow
It appears major FIIs went short in Nifty taking the feelers into consideration. The Euro aid is considered negative for Emerging markets like China, India and Brazil. As per their arguments stocks are expensive in the emerging markets.
Yesterday's IIP numbers were indeed disappointing. But one section of the analyst community argues that this will keep Mr. Subba Rao away from raising interest rates.
One should remember we are not out of woods and a trend reversal (if any) is expected today or tomorrow
Wednesday, May 12, 2010
Gold rises to record levels, D-Street to trade flat
Nifty above 5180 will fly others bear will rule
Yellow metal ruled the roast today closing record above $1,220 an ounce on the NYMEX. US Stocks traded flat despite of a global rout in equities. Euro uncertainity is propping up Gold to newer highs and we expect more and much more. We have a target of $2,000 in one year from now. Sounds over optimistic but it seems certain though.
RBI's move recently to purchase Gold was criticized by many but the country will be laughing to the bank in no time..
Concerns of Chinese tightening and Euro issues are still driving the markets crazy. British Hung parliament might even make UK debt situation even worse.
Equity market rally was lost in transit as global markets resumed the fall. We expect a mildly positive day today with Infrastructure Finance companies as well as fertilizer stocks are likely to do extremely well. Monsoon season is expected to be normal, much to the relief of the Fertilizer stocks which fo had a rough last year.
Markets are likely to be volatile...Speculators might be attempting to attract attention and dump stocks, One should be careful picking midcaps. Nifty 5200 appears tough nut to crack for the bulls
Yellow metal ruled the roast today closing record above $1,220 an ounce on the NYMEX. US Stocks traded flat despite of a global rout in equities. Euro uncertainity is propping up Gold to newer highs and we expect more and much more. We have a target of $2,000 in one year from now. Sounds over optimistic but it seems certain though.
RBI's move recently to purchase Gold was criticized by many but the country will be laughing to the bank in no time..
Concerns of Chinese tightening and Euro issues are still driving the markets crazy. British Hung parliament might even make UK debt situation even worse.
Equity market rally was lost in transit as global markets resumed the fall. We expect a mildly positive day today with Infrastructure Finance companies as well as fertilizer stocks are likely to do extremely well. Monsoon season is expected to be normal, much to the relief of the Fertilizer stocks which fo had a rough last year.
Markets are likely to be volatile...Speculators might be attempting to attract attention and dump stocks, One should be careful picking midcaps. Nifty 5200 appears tough nut to crack for the bulls
Tuesday, May 11, 2010
Consolidation, the name of the game
After clocking hefty gains across the board indices will try to consolidate the gains today but not with out a visit by Mr.Volatility. US Markets jumped, inline with global equity markets on the Euro deal. US Fed opened gates in a abnormal move, giving access to European banks the much needed liquidity.
Auto numbers yesterday continued to rule the roast a with highly impressive 39.7 pct growth, the best in the decade. One should focus on the low priced stocks in the domain like TVS Motors and Ashok Leyland. Both the stocks have already started attracting big money.
Fortis Healthcare, Asia’s biggest hospital chain, raised Rs 380 crore by selling shares to Singapore state-run investment company GIC Special Investments as part of its plans to raise Rs 3,000 crore for expansion. We are buyont on the healtcare space and recommended this stock to our subscribers as a multibagger at Rs 100 levels.
In another move which shows the power of Indian industry Sterlite Industries parent Vedanta Resources today announced it would buy UK-based Anglo American Plc’s zinc business for $1.34 billion (Rs 6,011 crore) in an all-cash deal. The acquisition substantially increases the Anil Agarwal-promoted company’s zinc and lead production capacity to 1,462 ktpa (kilo tonnes per annum) — boosting its production of lead and zinc by 37 per cent.
We expect major M&A (Mergers & Acquisitions) deals in the next one year involving Indian buyers.
Real estate, Cement counters are still looking pale while Banking undoubtedly shares the honours along with the Auto and IT pack.
How do we rate yesterday's rally ?
Yesterday's rally is like stocks retreating from the abyss but we do not believe in this rally. Stocks are likely to gain for couple more days before taking a back step. Indian midcap space is moving dangerously with vested interests playing a major role. We find lot of junk companies moving around and what is more alarming is there are takers for these companies. Stay from midcap space till more correction hits D-Street.
Auto numbers yesterday continued to rule the roast a with highly impressive 39.7 pct growth, the best in the decade. One should focus on the low priced stocks in the domain like TVS Motors and Ashok Leyland. Both the stocks have already started attracting big money.
Fortis Healthcare, Asia’s biggest hospital chain, raised Rs 380 crore by selling shares to Singapore state-run investment company GIC Special Investments as part of its plans to raise Rs 3,000 crore for expansion. We are buyont on the healtcare space and recommended this stock to our subscribers as a multibagger at Rs 100 levels.
In another move which shows the power of Indian industry Sterlite Industries parent Vedanta Resources today announced it would buy UK-based Anglo American Plc’s zinc business for $1.34 billion (Rs 6,011 crore) in an all-cash deal. The acquisition substantially increases the Anil Agarwal-promoted company’s zinc and lead production capacity to 1,462 ktpa (kilo tonnes per annum) — boosting its production of lead and zinc by 37 per cent.
We expect major M&A (Mergers & Acquisitions) deals in the next one year involving Indian buyers.
Real estate, Cement counters are still looking pale while Banking undoubtedly shares the honours along with the Auto and IT pack.
How do we rate yesterday's rally ?
Yesterday's rally is like stocks retreating from the abyss but we do not believe in this rally. Stocks are likely to gain for couple more days before taking a back step. Indian midcap space is moving dangerously with vested interests playing a major role. We find lot of junk companies moving around and what is more alarming is there are takers for these companies. Stay from midcap space till more correction hits D-Street.
Monday, May 10, 2010
Big day for bulls ahead, Dow Futures up 200 points
After a disastrous week equity markets are on a recovery mode today. Asian markets are trading up while US Stock futures sky rocketed, currently trading up 200 points. The major reason behind the upmove is the following news snippet:
"The European Central Bank confirmed late Sunday that it will buy government bonds in the secondary market to ensure debt and liquidity to those market segments which are dysfunctional"
We expect the markets to pull back in the next two days while down trend will resume in the later part of the week. Here is the catch.....Do not get into midcap counters and try to ride the frontline counters.
We expect Nifty to take a shot at 5200 levels only to fail later. One should keep in mind that the pull back is just a bounce after a dreadful week. Patni computers is showing immense strength in a other wise weak market. ET reports that
"The three Patni brothers, who co-founded and promoted the country’s sixth-largest software exporter, Patni Computer Systems, may get a premium for selling their stake to Japanese strategic investor NTT Data Corp, as compared to private equity firm General Atlantic"
"The European Central Bank confirmed late Sunday that it will buy government bonds in the secondary market to ensure debt and liquidity to those market segments which are dysfunctional"
We expect the markets to pull back in the next two days while down trend will resume in the later part of the week. Here is the catch.....Do not get into midcap counters and try to ride the frontline counters.
We expect Nifty to take a shot at 5200 levels only to fail later. One should keep in mind that the pull back is just a bounce after a dreadful week. Patni computers is showing immense strength in a other wise weak market. ET reports that
"The three Patni brothers, who co-founded and promoted the country’s sixth-largest software exporter, Patni Computer Systems, may get a premium for selling their stake to Japanese strategic investor NTT Data Corp, as compared to private equity firm General Atlantic"
Friday, May 7, 2010
Wall Street - Correction to crash
The Unprecedented happenned on wall street yesterday. Dow Jones plunged 1000 points (700 points to be specific in a matter of 15 mins) sending panic signals to investors. While the unusual activity is being reviewed by SEC and other regulatory agencies, one of our sources say the trade happenned in Procter & Gamble counter between 02:40 and 03: 00 PM EST. Nasdaq announced it will cancel all the trades on behalf of participants.
"Massacre" is the right word to use. The Tape was shaken with ferocity of the fall. Investors are dumbstuck. If the close on the wall street had been miserable we might have seen a Black Friday across the world today. Dow Jones ended the day with a loss of nearly 350 points pushing Austrialian stocks down. Australia lost 4 pct in the last 2 days.
Indian Markets - Resilient
Indian market performance is far better than the rest of the markets on the globe. But one should understand we might not be able to hold on for longer period. Indian markets are likely to tank today and any pull backs should be used to get out of equities. We were suggesting the same in this column from the past one month. We were bearish and continued to be bearish courtesy the soverign debt concerns. We failed to time the correction till last month but we figure the correction is round the corner and were right on spot this time
"Massacre" is the right word to use. The Tape was shaken with ferocity of the fall. Investors are dumbstuck. If the close on the wall street had been miserable we might have seen a Black Friday across the world today. Dow Jones ended the day with a loss of nearly 350 points pushing Austrialian stocks down. Australia lost 4 pct in the last 2 days.
Indian Markets - Resilient
Indian market performance is far better than the rest of the markets on the globe. But one should understand we might not be able to hold on for longer period. Indian markets are likely to tank today and any pull backs should be used to get out of equities. We were suggesting the same in this column from the past one month. We were bearish and continued to be bearish courtesy the soverign debt concerns. We failed to time the correction till last month but we figure the correction is round the corner and were right on spot this time
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