IN OUR OPINION DOW JONES INDUSTRIAL HAS MADE A DOUBLE BOTTOM FORMATION AT 10604 LOW MADE ON 09.08.11 AND SECOND BOTTOM AT 10686 MADE ON 10.08.11. WE THINK THAT THE WORST IS BEHIND US FOR BOTH U.S. AND INDIAN MARKETS.
IN OUR OPINION ALL THE WORST THAT COULD HAPPEN TO U.S. HAS BEEN PRICED i.e. DOWNGRADING OF U.S. BY S&P AFTER 75 YEARS, QE3 MAY NOT BEEN COMING IN THE NEAR TERM, UNEMPLOYMENT AT ALL TIME HIGH ETC.
AS FAR AS OUR INDIAN MARKETS R CONCERNED RATE OF INTEREST R NEAR PEAK LEVELS. RBI WILL THINK TWICE BEFORE RAISING MORE RATE OF INTEREST IN FUTURE, SINCE GROWTH HAS STARTED FALLING DOWN. INFLATION IS NEAR PEAK LEVELS. CRUDE IS FALLING WHICH MIGHT HELP INDIA IN THE NEAR TERM ETC.
THEREFORE, FOR U.S. MARKETS U CAN LONG DOW JONES AT CMP OF 10800 WITH A STOPLOSS OF 10600 FOR A TARGET OF 11110, 11388 AND 11668. IN RESPECT OF INDIAN MARKETS, WE WOULD LIKE TO SAY THAT U CAN PUT IN AT LEAST 25% OF THE MONEY IN THE COMPANIES U LIKE AND ADD MORE ABOVE 5350 NIFTY LEVELS. NIFTY HAS THE TARGETS OF 5234, 5288 AND 5333 IN THE NEAR TERM.
IN OUR OPINION ALL THE WORST THAT COULD HAPPEN TO U.S. HAS BEEN PRICED i.e. DOWNGRADING OF U.S. BY S&P AFTER 75 YEARS, QE3 MAY NOT BEEN COMING IN THE NEAR TERM, UNEMPLOYMENT AT ALL TIME HIGH ETC.
AS FAR AS OUR INDIAN MARKETS R CONCERNED RATE OF INTEREST R NEAR PEAK LEVELS. RBI WILL THINK TWICE BEFORE RAISING MORE RATE OF INTEREST IN FUTURE, SINCE GROWTH HAS STARTED FALLING DOWN. INFLATION IS NEAR PEAK LEVELS. CRUDE IS FALLING WHICH MIGHT HELP INDIA IN THE NEAR TERM ETC.
THEREFORE, FOR U.S. MARKETS U CAN LONG DOW JONES AT CMP OF 10800 WITH A STOPLOSS OF 10600 FOR A TARGET OF 11110, 11388 AND 11668. IN RESPECT OF INDIAN MARKETS, WE WOULD LIKE TO SAY THAT U CAN PUT IN AT LEAST 25% OF THE MONEY IN THE COMPANIES U LIKE AND ADD MORE ABOVE 5350 NIFTY LEVELS. NIFTY HAS THE TARGETS OF 5234, 5288 AND 5333 IN THE NEAR TERM.
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