CANB @274(230108) gets 1118 panch-tattva points and may be bought for medium term.
(Ask for ‘denabank’,'unionbank’ and ‘vijayabank’ for payment of Rs100/- per scrip , contact 09376168780)
Archive for January 23rd, 2008
panch-tattva talk
January 23, 2008Friends,
10% surcharge on Income Tax may be reduced or scrapped in coming budget.
REL has issued 4.30 cr warrats and has raised Rs7835 crs through it, now the net worth of company stands at Rs18150 crs.
Rates of steel ingots have improved to Rs25500/ton and this would be in the interest of Sail and Tata Steel maintaining profitability.
World Cap. of listed securities of the world stands at $533525 bn , India has share of 2.8% , it had more than 3% share only a fortnight back.
US Fed has curtailed bench mark rates by 75bps andFed Fund Rate is now 3.5% and the discount rate is 4%. This action should be followed by RBI , it has to keep India from inviting too much capitalIn fact, since the saving rate in India is high , it is good that some part of it gets converted in to risk capital by withdrawing some advantage of keeping it saved for interest earning. This action will spur consumption expenditure and will business less risky due to cheaper availability of capital. Inflation ect should not be consideration as long as there is no deficit financing for the state.
FM has vocla about the resilience of the Indian economy but I must say that the guidance of economy has been lax in seeing to it before hand that such movement is not enacted like the recent fall without a situation on the economic front inviting it. It should have been clear to them that advance against risk capital asets like equities to public is a basic fault and banks should shut window for such advance to individuals and also to others without enough collateral security. This has been reponsible for forced sales earlier and this time. Levrgaed trading is allowed in F&O section hence further leveraging through advance against shares held is a bad idea for the health of capital markets. When 20% fall can occur in 20 days what would happen in times of war or civil unrest or other black swan appearing. In fact black swan theory has been proved now by what has happened the world over.
Another need of market is to allow regitering of week long non-amenadable orders backed by cash/security which will always have prority at all times and have 1/2% subsidy/reward from seller/buyer. Data for this should be accessable to all participants. This will impart depth to markets and would evolve trading in the same spirit as market making.
I am happy to see the recent recommendations under ‘panch-tattva’ being of value to investors.
January 23, 2008
Friends,
The following is what appeared in my post on 17th Jan 08 under catagory of ‘panch-tattva talk’ :
‘Asian and US/Euope markets are all in a mood to take a dip. Sensex suffured a good fall and is settled below 20000. I expect a worse scenario.. I place the right value for sensex at 17500 and for nifty somewhere at 4800 . Any highe point is a higher risk and low rewrd. Let us see what is actually in store . The future events may force me to futher down grade the performance of indices.’
What was surmised has happened to an exact degree and this is nothing but the ‘panch-tattva’ system of analysis that throws up such insight. Nifty closed yesterday at 4899 pts after touching sub 4500 level and Sensex cosed at 16729 after touching sub 16K level. The PE for Nifty has come down to 20.44 and for Sensex to 21.23 . hese are the level here one should not worry too much as these would get adjusted to under 20 level after the results for 2007-08 financial year
Ther is much more to tell but later.
HariOm,
krsnaKhandelwal
panch-tattva/post result…grasim
January 23, 2008GRASIM@2862(220108) gets 1125 post result panch-tattva points and you may buy this for long term.
Previous Recommendations:
@3842(291007):1139:sell off.
@3190(060907):1140:book profits on surges.
@2860(300707):1168:buy for long term.
@2437(250407):1066:buy for long term.
(Ask fo ‘bankindia’,'pantaloon’ and ‘lupin’ for payment of Rs100/- per scrip,contact 09376168780)
