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Dear Friends,
The attached chart clearly indicates the technical condition of Nifty. Nifty is below 20dema and 50dema as of Friday EOD. What is to be noticed is the fact that Reliance after all the hue and cry of Bonus shares Reliance Industry went below its 200 dema. It would be a new experience for any market trader to observe a secular stock market bull run with the most heavy weight stock below its 20dema. I have always maintained post election results that a bull market is one that takes out its previous high by a margin. Even after positive results from Financials,Autos and manufacturing space I am highly sceptical with the consensus view of the 1100 eps for sensex components. To be fair Reliance Industry bounced back within 3 days to levels above its 200 dema. When traders compare the 2003 and the 2009 market movement the basic fact that they ignore is that we are not in the beginning of a major Capex cycle we are almost at the end of one. Credit growth has been in single digit with GDP growth of 6%!! With the advent of the so called Bull run we have an estimated over capacity in almost all the core sectors namely Cement,Cables and Steel.
MISQUOTED:- A company called Radhe developers frequently released advertisements in print media and live media about its ambitious future projections. After studying its balance sheet I fail to understand that how a company with a reserve of 2.5 million can raise 5000 million via GDR. The company claims to pocess a landbank of 1200 acres.Company has a market cap of 87 crs at cmp. In 2004 the market cap of the company was a meagre 1.5 crs. In 2007 at the time of real estate boom the market cap was a meagre 7 crs. I believe the market regulator should frame guidelines for companies that release advertisements on landbanks. Even a speculative investor should clearly avoid this company. The company has completed just three residential projects, which were very small in nature.
Traders should note that with every passing day the number of laggards in Nifty is only rising. It started with Reliance and Unitech. With passage of time the only sector that remains in uptrend is Pharmaceuticals and Non ferrous metals. It would be interesting to see how the market moves from here. Midcaps are still a store of value and select stocks will always mint money for traders and investors.NIFTY SUPPORT:- 4611,4539
Nifty resistance :-4863,4830
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TSR SEPTEMBER SERIES REPORT.
PROFIT 82945 = IN 1 LOT
REFER
http://www.future-friend.blogspot.com/
TSR INTRA NIFTY
PROFITS 32840 (688 POINTS IN 1 LOT)
REFER
http://www.tsrnifty.blogspot.com/
TSR OPTIONS PLAN
PROFITS 38450
REFER
http://www.tsroption.blogspot.com/
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