Guys, its panic selling , not only in our market but also in western world.

Good time to build a blue chip folio....

Sorry for intruding guys, but the bailout package of Bushy seems to me like an extra voluptious woman trying to cover herself with just a few threads ....

Dear BSR

Athough your views abt the liquidity are rational and logical, but would these players who have made sackfulls dare to enter in the current scenario. It seems doubtful.

On the other hand, from what i have seen in the past, market behaves exactly as it is not supposed to behave.

Lets see

Regards

Rahul...

Hi novice1000

Would the injection of USD700 Bn in the american economy have any effect on our markets??? I doubt it very much as the amount is too small for the american economy. But yes there may be a psycho effect on our nifty. This seems to be the most obvious line of reasoning.
But have the markets ever listened to reason...

Lets watch.

Enjoy

Rahul...

Dear BSR

I was surprised to know that at even nifty@4400 we are trading at a P/E of about 14. The forward ratio can be calculated as 12 for FY10 and 10 for FY11[Approximations]. I feel that we are not cheap at even the current levels and only the liquidity from the FII can raise the indices, the possibility of which seems low right now.

Of course , these are all assumptions, and any surprise in earnings on the upside, which is quite a possibility, can raise the indices by more than 20% and take nifty to 5200 in the short term.

Lets wait n watch

cheers

Rahul

P S -I am long substantially in the nifty. ...

Merkets seem to be behaving in clinical precision style, wipe out and finish the small guys so they dare not touch equity for an year or so and then again go to illogical highs....

Its all gloom and doom now, retail seems out for now.

Count on the institutions to start bottom fishing any time now.

Anyone buying now wont regret one year later....

dear rahul, Sorry for the late reply. You are right that 700 billion US$ is not big enough.But it can have an effect on sentiments which will be short lived. regards...

See the suzlon, ranbaxy and so many front liners....This was a fire sale happening...

Dear rahul8603, Strange it may sound... Market so far has behaved as per my BS expectation! :) :) If you would have noted that I said build POSITIONS slowly! :) Today was the last day to build those positions! :) Now let us see how GAME goes ahead! :) From next week onwards, only good triggers are present! :) Keep one BS point: Most of BIG PLAYers use COMPUTERS to to all these trading in this technical age! :) Since COMPUTER is emotionless, that just behave as per the data feeded. :) Gud luk & happy investing! :)...

hi rahul, You are right.Right now sensex PE is approximately at 15 levels.It is definitely not cheap unless the excess liquidity from FIIs come to Indian markets and which can anyways be ruled out in the very near future. Nifty can reach 4800 levels basing on the positive cues and which will be the upside cap for the time being. regards...

Dear rahul8603, If Nifty goes above 4650-4700, that will CONFIRM the start of BULL RUN! Many FIIs and traders have made TON load of MONEY by using SHORT SELLing direction. Liquidity is not a problem! Money is just lying around. Only investors have been on losing side, not those traders including FIIs! :) Once that happen, then we will hear all kind of BS stories that India is on growth plan and India deserves higher PE etc.. normal BS stories that are PLAYed in BS Games. :) For time being, be alert and cautious! Gud luk & happy investing! :) ...

Merkets seem to be behaving in clinical precision style, wipe out and finish the small guys so they dare not touch equity for an year or so and then again go to illogical highs....

Dear rahul8603, Just to clarify one simple rule in the GAME of Stock Market :All stocks do not fall to their 52 weeks LOW at the same time when Nifty will go for that LOW which for some strange reasons, people are adamant about or praying about! As I said before that making MONEY and bring RIGHT are totally different things. Just by 10% right, smart traders or smart investors can make MONEY in stock market! Gud luk & happy investing! :)...