Lateral Thinking by HBJ Capital Team...
One biggest question in the mind of all the investor/trader community now is.....Infosys Result tomorrow on July 11th .....Will it provide a helping hand to India stock market, similar to what it did last quarter?
Last quarter when whole world was expecting Infy to come with below expectation result and lower projections, it indeed came with lower result and lower projection of future earnings but stock market took this a positive sign, because all works like this..."You expect worst and if news is little better then worse then you will take this as positive......in school we read na..Negative multiplied by Negative will result in Positive....Same thing happened last time.
Now, during last 3 months Infy stock was flying, due to okay result of Q4 FY08 or due to rupee depreciation or due to STPI or SEZ tax concession so and so....this time stock market expect Infy to provide better result and conservative earnings guidelines, and yes Infy will do the same, but buddy these good news are already factored in its stock prices.
Since, financial and retail sectors in US are going into prolonged recession, hence future projections from Infy will not be as expected by stock market, hence one can expect stock market fall on July 11th when inflation numbers are also going to hit the market. With crude going back northward, one should buy Nifty PUT Option ONLY.
-HBJ Capital Team.
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