Report ----- for Wednesday 16th

A real bad day for the capital market not for the global weakness but for the narrow thinking of traders and investors. Across the board investors made exit as if the market has reversed for ever on the pretext that REL power issue was subscribed. However to best of my knowledge, the rally will catch momentum very shortly as the market is in oversold position. Unconfirmed sources say that M A too has subscribed to REL power issue.

The fact that Govt has announced to raise 16000 crs for SBI rights issue and Rs 40000 for BSNL IPO augurs well for the capital market. Just think what the PM of India was saying about infra needs a couple of years back…? 150 bn was height whereas now he is talking about 700 bn USD and I am sure in next 2 years the figure will rise to 5000 bn USD. The leaps and bounds in inflow will take India towards a developed nation in next 10 years and till that time we need think about exit.

Look at your past and see what have you made out of it…..? Only few merchant bankers have earned 1000 of crores rupees in India by doing their game whereas the real power its genius AAM ADMI has not made anything for them…? Who should be blamed…us Govt …..the system or yourself….? I think the blame lies on you. You know the destination yet you throw yourself in towel or alternatively trader for just 5% spread.

Nation makes us and we make the nation likewise market makes us but more than that we make market. If you follow one GURU for deciding the market trend you will be better off.

We are bullish on the market and will remain bullish because our call is not based on REL power issue or global weakness. The later will remain for another 1 quarter and hence the weakness in global market is understood but for India we have just completed 3 bn USD IPO and another 15 bn is set to be raised by Govt alone and 15 bn by private players. In short 35 bn USD will be raised which will be introduced in the system investment cycle. This will spark the GDP growth beyond 10% easily. In view of the same we can’t expect the capacity expansion will top at these levels.

Market may open further weaker tomorrow as it has failed to hold on and another bout of margin trigger will occur tomorrow morning. However the targets are intact and lion hearted traders and investors may stick on whereas weak hands please exit as early as possible. All our calls in S C sections are firm and we would see that all the calls are matured in profit without breaking our tradition.

Punj Lloydd, IDBI, IFCI, Bombay Dyeing, Peninsula, BEML, Hindustan Oil will remain our top picks. Few of the stories we have exploded with futuristic triggers rest we leave it for the market to explore and explore. We can justify but we will wait for appropriate time to explode and also appropriate forum.

-----With due apologies and full credits to chamatkar