Stocks

I am happy to be back on MMB

Posted by : novice1000

dear aby,

The phrase `Mouth watering prices` is very subjective.

Valuations depend on many factors.Particularly during the bullish times, due to higher liquidity, valuations reach stratospheric levels.

And when the correction takes place and stock valuations reach more realistic levels, it gives an impression that valuations are dirt cheap.

In reality, markets reached right valuation levels.They are definitely not over priced.But definitely not very cheap as many perceive.

India will not slip in to recession forget about LT recession.

But there will be clear slow down in GDP growth in the next fiscal.It takes slightly longer period to achieve previous growth rates of 9% levels on an annualized basis.

What ever happening is good from a long term perspective as the excesses ae being taken out..

regards

Decoupling days are coming ahead.........

Posted by : Lalitdeshpandey

At last check, the Dow Jones Industrial Average (DJIA – 8,259.16) had plunged 320.03 points, or 3.73%. Earlier in the session, the Dow hit a low of 7,882.51, for a loss of 696.7 points. Of the Dow`s 30 components, only 5 were able to locate positive territory, with J.P.
Midday Market Update: Dow Breaks 8,000 for the First Time in 5 Years

U.S. stocks head for their eighth consecutive drop as investor confidence continues to slip
.........................................

In the opening minutes, the Dow Jones Industrial Average dropped below 8,000 for the first time since April 1, 2003. As U.S. stocks are headed for their eighth consecutive losing day, Tony Crescenzi, chief bond market strategist at Miller Tabak & Co., said, "A psychiatrist is what is needed to help investors today."

Espen Furned, an Oslo-based fund manager at Storebrand Asset Management, said, "We have reached the panic stage...This is worse than 1987 because then it was largely confined to the stock market, with limited effects on the underlying economy. Fundamentals don`t count anymore." Kare Schapiro, of Sentinel Asset Management in San Francisco, stepped in to further explain the current economic situation. She said, "The wheels of commerce have effectively seized up...Trapped by the fear of losing everything, we`re seeing one-sided selling."



Morgan Chase (JPM) and Bank of America (BAC) leading the advancing equities. For the blue chips trading in the red, Exxon Mobil (XOM) and Chevron (CVX) tagged the biggest losses.

The S&P 500 Index (SPX – 871.63) had dropped 38.29 points, or 4.21%. The Nasdaq Composite (COMP – 1,586.81) rounded out the slipping indices. At last check, the tech-rich indicator had lost 58.31 points, or 3.54%.

Decoupling days are coming ahead.........

Posted by : treasureddhan

wroooooooooooooom dow below 8000 and nasdaq down by 100

Playing it SHORT !

Posted by : DUstocks

Sorry retrobroker, I don`t track sugar/fertilizer sectors .... so can`t possibly advise you in that regard.

I have a gut feeling (nothing more than that really !) that by Wednesday we should hit the bottom - I would find it safe to buy around 9500 SENSEX.

It would indeed be far more practical to down-average cash shares with lowly-procured FUTURES, rather than with cash shares procured by paying 100% upfront. I quote the details below :

If you have 1970 IFCI @ 45, you`ve already incurred an exenditure of 88,650 rupees. You can conveniently down-average it by buying a FUTURE at say 25 ... bringing your effective procurement to 35 rupees ... and that too at ZERO expense upfront ... if you have a decent-sized portfolio with a reasonable BROKERAGE HOUSE, they shouldn`t normally charge you any MARGIN PAYMENT for transacting FUTURES. So, the equation is between FREE 1970 shares @ 25 (as a FUTURE lot), or 1970 cash shares @ 25 at an upfront expense of about 50,000 rupees.

Now just imagine how much your net saving would have been if you would have down-averaged a FUTURE @ 45 with another one @ 25, rather than 1970 cash shares @ 45 with a FUTURE @ 25 !!!

Also, as we are nearing expiry in such a bearish scenario, please do not forget SHORTING two lots of OTM call options whenever IFCI shows a bit of a rally next week.

My views for sure. Regards, DU.

Satyam may plan for buyback....

Posted by : vkk43

thanks for what, timex is drifting down like market. So also Titan.

Decoupling days are coming ahead.........

Posted by : treasureddhan

wroooooooooooooom dow below 8000 and nasdaq down by 100

Decoupling days are coming ahead.........

Posted by : treasureddhan

dow again getting stripped and slowly nearing to go below 8000

Decoupling days are coming ahead.........

Posted by : treasureddhan

dow again getting stripped and slowly nearing to go below 8000

I am happy to be back on MMB

Posted by : raj_tibs

Hi Aby,

I think a good time to start accumulating.... Some frontliners i like are NTPC, GAIL, ONGC, SBIN(on a dip) and BHEL (again on a further dip).... How fitting that the Navratnas are really standing tall (of course, we know who is buying into thm and at whose behest)...

Avoid Reliance, TATA and Birla group stocks as they are likely to be hard up for cash... Though TATA group stocks will likely outperform in the next bull run.

Telecom i believe is not a good investment now... It is getting increasingly more competitive, and is unlikely to outperform.

True, there are a lot of midcaps with sound fundamentals that are available cheap.. But I think they will only follow the frontliners.. So right strategy should be to buy frontliners, and once the frontliners are giving 15-20% returns, book part profits to invest in good mid-caps.

Do remember that there is another risk that we face in the form of elections; and a hung parliament, or a govt led by the third front could lead to another big collapse.

Good Luck!

Decoupling days are coming ahead.........

Posted by : treasureddhan

Uncharted territory can be used only when the market breaches higher level, if I am correct. As it falls it only retrace the level and charts are all created as it went up

Decoupling days are coming ahead.........

Posted by : harishkrsharma

Next supports are 3150 and 2900 but 2500 nifty means almost 8000 on sensex............we are actually in uncharted territory where market will decide on tis own the supports and resistance in the days to come.

Chidhambaram the FM has cancelled the US trip.........is something serious with ourselves too............?

Nagarjuna bees (20) rupayamein milega?

Posted by : avrochan

20 Rs. hone kaa chance hai to hazaar kharidega.