Publisher of "10in3" Equity Research Report - Research Report on a Small Cap with 10 times in 3 years potential & "Street Smart" Newsletter - Lots of Investment Ideas/Sector coverage with stocks reco.
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If you want to make money in the stock market then start building a bigger stomach, lean & thin guys hardly make money in the market…..ha ha ha. Yes, it is true, let me explain you what I meant by big stomach here, "Patience, High digestive power, Slow movers" etc are qualities you must have if you want to make it big in the market…..
Most of us are suffering from low self confidence issue. It is something like we don’t have conviction in ourselves…..same thing happened today in the market, Hang Sang, Nikkei, European market were flaying higher up 3-4%, due to Fannie Mae and Freddie Mac bailout news. For India it was double happiness, apart from above news; for us it was big achievement of getting NSG waiver and nuclear technologies after 34 years, indeed a great victory.
Whole world knows that, they can’t ignore India’s power but we Indians feel as if it is too much too soon. This was the reason why few traders with herd mentality sold off before closing the market with the fear that they might lose their gains which was due to sudden, unexpected NSG/bailout news. But the fact is this rally is going to continue for longer time.
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Market Wrap-Ups:-
- Profit-booking offset strong gains registered by the BSE Sensex and the S&P Nifty on Monday, with the indices not giving any direction at the close of the session. Both the Sensex and the Nifty fell below their respective psychological levels of 15,000 and 4,500.
- In the F&O segment, large-cap stocks, particularly banking and finance, power and realty sectors, witnessed profit-booking. September futures also showed strong buying support on NSE as they widened their premium to spot from 14 to 24 points. The open interest (OI) jumped by 4.23 million shares intraday, but got squared off during the half hour trade-off session.
- But positive cues from world markets and hopes of inflation having peaked globally may not be enough to sustain the rally in the Indian stock markets, which are weighed down by concerns over higher interest rates, slowing economic growth and impending state polls that will lead up to general elections in May next year.
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HBJ Capital’s Views for tomorrow (Tuesday).
We at HBJ Capital, after predicting market on Monday with 100% accuracy, still hold the view that on Tuesday Indian Stock Market are going to move up further with Nifty gaining 40-50 points which is between 1-2% up.
This rally which we are going to see now is the mother of all dead cat bounces. We are likely to see a recovery that may last couple of weeks. In April-May or March-April, there was a rally and then it collapsed quite quickly, same thing is going to happen now, but the magnitude of upside will be more so as the fall which will be sharp.
If we look through the Nifty, we can see a breakthrough running through to about 5000 but then a retreat from 5000 sliding down that trend line and a retest of support at 4200; potentially as low as 3600 also.
Trading Strategies for Tuesday:-
- Stays invested and use sharp declines for buying. Keep holding your LONG positions or take exposure to Call Option on Nifty.
- As of now people are confused and they might keep selling in between but when they realize that it is a big rally, they will participate in the rally and hence smart guys like you will exit. Beware, when opinions on the street are unanimous; So when there will be full consensus on the upside movement, it will be a time to exit and build short positions. The market is famous for doing the unexpected.
- PLEASE "DO NOT TAKE ANY EXPOSURE TO NIFTY SHORT OR PUT OPTION".
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Global Clue: [US government bailed out troubled mortgage firms Fannie Mae and Freddie Mac]
- Stocks mostly advanced Monday as investors put down bets that a recovery in the financial and housing sectors is in the offing following the U.S. government's move to bail out mortgage giants Fannie Mae and Freddie Mac.
- The Dow Jones industrials gained more than 150 points but the technology-heavy Nasdaq composite index declined.
- The market this morning started with a big bang. In fact it was expected to because global markets were all having a big party early in the day. The Fannie and Freddie bailout came in on Sunday.
- Apart from the US Treasury’s injection of $100 billion (Rs4.43 trillion) each into Freddie Mac and Fannie Mae, its commitment to buy the government-sponsored enterprises’ mortgage-backed securities until borrowing costs eased to more acceptable levels was another unexpected positive development
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FII/DII Activities [Always follow FII activities; it is money which rules the market]
- Foreign Institutional Investors (FIIs) turned net buyers in the equity segment worth Rs 2.53 billion on both the BSE and the NSE on September 8, as per provisional data available at NSE. They bought equities worth Rs 31.55 billion and sold equities worth Rs 29.02 billion.
- Domestic Institutional Investors (DIIs include banks, DFIs, Insurance and MFs) turned net sellers in the equity segment worth Rs 1,326.2 million on both the BSE and the NSE on September 8, as per provisional data available at the NSE. They bought equities worth Rs 8,056.8 million and sold equities worth Rs 9,383 million.
-HBJ Capital Team
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