Tuesday, August 9, 2011

MARKET HAS ALMOST BOTTOMED OUT, IT IS TIME TO BUY

In the last few trading sessions the BSE /NSE indices have corrected more than 10%. This is largely due to what happened in US. Slowing down in the US economy may affect some of our companies, particularly IT and export oriented. There are benefits from the current melt down in global markets. Commodity prices are cooling down. Great news for developing economies like ours. This will bring down the inflation. RBI may not go for any rate hike in its Sept 2011 review meeting. India's growth story is intact. The US economy is not as bad as it is made out. There will not be double dip rescission, as feared by most. The same rating agencies will come out with a robust picture of USA, in next 3-6 months. Sovereign ratings, most of the time is based on perception, than facts.

Most importantly FIIs have to invest their funds in emerging markets, they have no choice. Among emerging markets India is the favored destination.

Stay invested.


1 comment:

  1. I studied lots of sites and blogs,saw all your previous years recommendations and awesome results. Now i want to learn as much as i can as i am new to share market & have read soo much theories Stop loss of 10% and Profits of 20-30% is awesome,being from technical background when searching for a good stock i see charts, according to stock's price in previous years i see rates of that stock increase in 1D,1M,3M,1Y & 3 Years if price is increasing & stock has consistent growth in turnover/income & PAT i feel stock is good,according to theories mentioned by lots of big guns in market including "Warren Buffett",but in the end i buy these and discover i bought at the peak and rate starts falling as a down staircase with no exit options as no buyers. Maximaa Systems you recently suggested to exit is one similar disaster,Chartered Logistics,Bharat Rasayan,Rushil Decor,universal Arts. I want to reach at the best knowledge as why Mr.K. A . PRASANNA suggested this stock,what did he see in it??
    Now i searched Cals refineries suggested by you it has no such growth in price in past 3 years,nor good turnovers or PAT,is it this line "Cals Refineries Ltd. has plans to set up a total of 400,000 BPSD (20 MMTPA) of oil refining capacity on India’s east coast in the State of West Bengal, in phases, thereby emerging as the third largest oil Refining and petrochemical company in the Indian private sector. " & the stock being an OIL & PETROLEUM stock what you saw and suggested.
    Kindly help me reach the knowledge regarding searching a good stock and factors to observe.
    Thanks a lot for your precious knowledge.

    ReplyDelete