dear pranky,

Theoretically speaking.. the argument seems absolutely fine. And in the initial days, PF funds may make some decent money in markets ( keeping in mind the present dull phase).

But it may be difficult to maintain the competitiveness( in terms of ROI) of these funds in the long term as they have to compete with cutthroat fund managers of FIIs.

Just like investment bankers from US have been trying to sell their derivatives (which are nothing but waste papers) to Indian companies by luring them better returns, there is no guarantee that useless stocks at high prices may be sold to PF trusts in future.

But initially to make people believe that everything is fine...these PF trusts will be allowed to make some money say for a period of 4 or 5 years.But the real story will begin afterwards.

If anybody wants to call it a paranoia , its absolutely fine for me.

regards

PS: One should understand that excessive activity ( read as liquidity) in stock markets dont improve the economy instead it results in just speculation which may not last longer unless the overall economy improves at the same pace.


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dear pranky,

I dont think it is b\\`coz of that msg.

Instead, you deserve it.. as simple as that..

regards...

hi pranky,

Quote--

Probably, none of them cud discover the diamond from normal coal , which i cud........ :)

Unquote-

Well said buddy.. and your insatiable appetite for diamonds in markets will help out the boarders on MMB as well..

Congrats .. you are the boarder of the day...

regards
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dear hardybull,

yeah.. this counter can reach 435 levels in the short term.

regards...

dear hembhat,

FIIs are not putting any big money in our markets.They are playing more in F&O segment.

From now onwards, it is has to be a sector specific and stock specific call.As you said some PSU banks might see better levels in the near term.But this is too early to conclude that all is well regarding the over all economy.

Regarding crude price, it will have a real positive impact only if it comes down to levels below 90 US$ per barrel.

Sensex movements in the immediate future depend on SEBI\\`s decision on relaxing the ban on p-notes.

Probably by next month, sensex may start witnessing a down trend again.

regards...

dear marketbear,

As you pointed out, markets are reaching their logical top ( sensex levels of 15800).

However SEBI\\`s actions like relaxing the ban on p-notes can propel the markets in the short term and may take the markets to little more higher levels say to 16600 levels.

But the main concerns like the possibility of crude going back to higher levels are still like that and keep persisting...

We may not revisit the lower levels in hurry... but by Sep 2008, sensex may start witnessing a downward trend again.

regards...

dear neil,

A very good post.As the root cause of the problems in our economy being higher crude price, investors and traders have to carefully watch the developments in the middle east which may push the crude price to higher levels again.

If you remember the fall in 2000, sensex started falling in the month of march 2000 and started making lower bottoms and lower highs till the attack on world trade center in sep 2001.And it reallbottomed out only after the attack.

Even now, the sensex will bottom out only after some war like event.Till then the problem of higher crude price persists, sensex will remain in a volatile region making.For the time being it is a trader\\`s market.

We might see sensex moving downwards again by this month end or by next month.


As of now sensex upside can be considered as capped at 15800 levels.

However, if there is any news from SEBI on relaxing the ban on p-notes,it may boost the market sentiments in the interim period and propel the sensex to better levels say to 16600.

Keep doing the good work....all the best

regards...

Well said Novice I fully endorse your views. Our country has no social security measures in place apart from pension in Govt/Public Sector. Most of the companies even do not pay their contribution of PF to the PF trust. Though labour laws are in place, it is flouted and in the end labour is left high & dry. High risk high return or no return-only future will tell. Raju123...

QUOTE Just like investment bankers from US have been trying to sell their derivatives (which are nothing but waste papers) to Indian companies by luring them better returns, there is no guarantee that useless stocks at high prices may be sold to PF trusts in future.UNQUOTE - Infact , I think it is the vice-versa . :) ...

I really doubt that dear Novice that these sort of money will result in Speculations..... This is the LT money to be invested - we are talkin about some SERIOUS LT money... isnt it???...

Thnx Novice, But is it becoz of this msg...??????...

who said you that SEBI is relaxing the norms. Finance ministry had said that it is not considering any relaxation for FIIs. And it should not be done sothat genuiness of FIIs will be at better percentage. Quality of FIIs is important that quantity. To make market matured, such regulations are required which can protect interests of more investors...

hi friends, This is definitely one of the good counters for LT.This is an excellent bet in present volatile environment. It is looking good even with a short term perspective.However short term players with enough risk appetite can play with it for an upward target of 8 to 10%. regards...

Husn hazir hai mohabat ki sazaa paane ko.. Haan Koi pathar se na maare mere diwaane ko!...