Outlook of Indian Market from here?
Market has to correct till 13,000 levels by this year in my view but exact time when it would happen is difficult short term budget is holding market.
International markets are weak?
Good data from many countries but market has its own way and Volcker ban on trading for profit of banks pending for discussion in senate is important http://prabhakar-views.
View on Gold?
I have a bearish view on Gold and Crude as Dollar index has started to show strength and can move towards 85 which is now 79 and Gold can have negative returns. Dollar index gaining strength can also trigger Dollar carry trade.
SUZLON you have started to like and you have recommended a buy?
SUZLON was a stock where I had bearish view but company reducing debt and taking steps to restructure operation is very positive, still next one year will be difficult time after which it can start to perform. For an investor when performance is seen then stock will be in premium so bad times buy good stock.
Parikh Committee Report impact on stock market?
It is not easy for government to implement the report in full but a part of this can be implemented and freeing diesel and petrol price are very positive for RELIANCE & ESSAROIL as they have huge network already in place and this will enable level playing field.
Won’t rising Diesel and cooking gas stroke inflation?
Yes inflationary impact will be there but Government and oil companies will have to pass on the burden to consumers and if we notice in month of December 2009 our non-oil imports have risen by 22% which means our food security is under threat. So in my view government has to come with a good fertilizer policy which will help companies expand as this sector needs good policy imitative.
View on RELIANCE?
RELIANCE is an evergreen stock and now Gas has started to make good profit and refinery has recovered and if free pricing Is allowed then they will open the closed petrol pumps and they are doing retails sector is also picking up this company will see overall performance and I have advised many of my clients to do SIP (Systematic investment plan) of this stock buy daily one share or weekly or monthly.
Textile sector I hold xxx stock?
I hold long term bullish view on the sector as slowly many companies have started to report profit and improve margins this has been underperformer for last 3-4years so downside is very limited for investor.
Positive sector?
Oil & Gas and Fertilizer are the positive sector which didn’t participate in 2009 rally and this can be outperformer for 2011 rally GSPL, RELIANCE, GAIL, IGL are some stocks I like as SIP. Oil & Gas holds 22% in Nifty and 23% in Sensex weightage and this sector plays important role for any major up move.
Telecom sector and 3G any view?
Telecom sector has given flat to negative returns in the last one year and awaiting final correction after which these stock will be attractive but investor can buy IDEA & BHARTIARTL in this segment and MTNL can be contrarian buy as they are only listed company in 3G space and this company can’t exist in current form any longer either it has to merged with BSNL or sold out or should expand pan India.
How will market be till budget?
Difficult to predict as many rumor and news flow will be there, but after budget I expect a major correction but when 13000 levels in Sensex will come is hard to predict.
Note: Correction is part of market and today whole global market is negative and traders should avoid this market or I don’t have advice for them. Investor annual discount sale is starting, prepare you buy list and start to shop as the offer will be till the stocks last. When everyone is a seller we good a good bargain to buy and when everyone is a buyer we get a smart exit so be slow daily investment of a small amount in next 100trading days will be the best average in next 6years.
Quote from George Soros, "biggest gains in my life have come when i was insecure in investing"
Investment is about financial planning and mistake in investment is made by greatest of the great people so an investor if he has divided his risk invested systematically and if his % of right is more than his wrong then he will do good in stock market.
Whenever stock market has failed to break January high in next 1 or 2months the correction has been big
http://www.bseindia.com/
Dollar Index
Dollar Index has been strong ever since Dec’09 and now it has started working perfectly as commodities have shown inverse co-relation with this index, Dollar has been becoming stronger and we see Crude/Gold/Copper and other commodities falling sharply.
Crude Oil
Crude Oil is near breaking down out of a channel formation where $65 would be major support below which there can be more correction in this commodity. We have 22% weight in Nifty and 23% in Sensex for Oil & Gas sector and with falling crude the market may be impacted negatively by this sector in short-term.
