Monsoon rain should bring some cheer !
Our equity market is moving in a trading range. As mentioned in the last post, 5300 is holding on as a good support. On geo-political front we had the Osama killing, terrorism in Pakistan, unrest in Middle East and our very own election results. People voted out corrupt and inefficient governments and voted for development. Major change in West Bengal was caused by 84% voting. This is good news for our democracy. What must be noted is that votes were allowed to be consolidated and not divided (unlike what happened in 2009 General Elections and in 2009 Maharashtra Assembly elections). When political parties stand united and accept mutually supporting roles they are well supported by wise voters.
On the economic front RBI raised the interest rates again sacrificing growth for inflation control. Petrol prices have risen but diesel and LPG decontrol is still awaited. The IMF chief had to resign for 'non economic' reasons. Greater the rise deeper the fall. Dollar is still in a downtrend and hence commodities are becoming costlier by the day.
India and Indians are growing in strength day by day. Our economy is doing well and will grow at 7% at least despite high inflation and high cost of funds. Markets will reflect this reality in their charts. Hence they are not falling below 5300 or 17500.
Change is the only constant in this universe. Nothing stays either good or bad forever. Hence one day this high inflation is going to reduce, cost of funds is going to reduce and growth is going to resume. Till then accept the pain and buy on dips. Industrious Indians will shine in this changing world. The center of economic gravity is for certain shifting to India and China.
rgds
Vibhas
On the economic front RBI raised the interest rates again sacrificing growth for inflation control. Petrol prices have risen but diesel and LPG decontrol is still awaited. The IMF chief had to resign for 'non economic' reasons. Greater the rise deeper the fall. Dollar is still in a downtrend and hence commodities are becoming costlier by the day.
India and Indians are growing in strength day by day. Our economy is doing well and will grow at 7% at least despite high inflation and high cost of funds. Markets will reflect this reality in their charts. Hence they are not falling below 5300 or 17500.
Change is the only constant in this universe. Nothing stays either good or bad forever. Hence one day this high inflation is going to reduce, cost of funds is going to reduce and growth is going to resume. Till then accept the pain and buy on dips. Industrious Indians will shine in this changing world. The center of economic gravity is for certain shifting to India and China.
rgds
Vibhas
Posts
4 comments:
Dear Vibahs Sir,
How are you?
Nice to hear that monsoon shold bring some chear.
I hold Satyam at Rs.98. Satyam is running since alst few weeks. It ahs now come to 90 and seems facing resistance. Could you please tell me whether I should quit at 90 or wait for 98 to come?
regards
Bhalchandra
HI Vibhas Sir,
I had posted one comment some two weeks back . But I am not finding it posted on site neither it is replied.
Is there any specific reason or it has got skipped.
Bhalchandra.
I have published all your comments.
I have been busy with training hence have not tracked the blog recently.
But I am back to blogging now on.
rgds
Vibhas
For Satyam, 98 to 100 is a top after a long run up. You could take profits and keep a stop at 85.
Vibhas
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