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Blog Posts

NIFTY Gap

NIFTY Support Zone Update

NIFTY cracks from our resistance zone mentioned in the last update on NIFTY. It now hovers above the crucial support zone between 8055-8088, with stochastic pointing towards further weakness, at the same time the momentum oscillator has ‘flattened’ instead of making new lows, while NIFTY today made a new low. We […]

Mutual Fund Taxation
Nifty Update

NIFTY Update

NIFTY faces tough resistance around 8320. It is a crucial resistance for NIFTY to overcome. Stochastic & momentum oscillators point to some sort of correction in the short term. One would be well advised to refrain from building long positions until a break of this resistance level.

Indigo IPO

Indigo IPO

We were recently asked about EPS, P/E ratio for Indigo IPO on Quora as these weren’t readily apparent from the red-herring prospectus. Below is our reply(with some edits) for the benefit of our regular readers. We aren’t covering the IPO, but here are the details as per prospectus: Total Shares […]

Edelweiss Performance

Edelweiss : Vagaries of the market

Edelweiss Financial Services listed on the stock markets at around Rs. 1400   in 2007, which was at 75% premium to its offer price of Rs. 825. It subsequently made a high of Rs. 1608 on NSE. The chart below presents a snapshot of price performance and important fundamental parameters […]

USDINR

USDINR approaches make or break price

USDINR approaches make or break price range that would decide its trend for coming weeks may be even months. A break of this price range would signal bearish trend however if it manages to hold above these levels (which to us looks unlikely) the prices would likely test the 2013 […]

Raghuram Rajan

RBI’s latest boost (or bust?) to real estate

PTI reports the latest RBI move to “boost” an already over-valued real estate market by lowering risk weights on select home loans ( up to 75 lakhs) and consequently higher Loan-To-Value ratio by up to 90%. To quote the article on Firstpost: “the banking regulator said in the case of ‘individual housing […]

sensex

Sensex and a market indicator: ET News

On a day the Sensex rallied over 500 pts (564 points to be exact) ET carries an article titled why it may fall to 22000 on its front page. The article points to the disbelief in the current rally which has traveled quite quickly from 24923 to current levels and […]

Raghuram Rajan

RBI 50 bps rate cut a surprise? Not really !

We are actually surprised that so many economists and market men are surprised that RBI under Rockstar Rajan went for a 50 bps rate cut. So we re-post the link to our 25th August post which illustrated the rock solid case for >25bps cut. Oh! we also predicted that the Federal […]

interest rates

INR, Interest Rate Cut, Inflation and one trade that many retail investors aren’t aware of.

The RBI governor has been hesitant in cutting interest rates partly due to inflation scare and partly because the transmission of interest rate cuts hasn’t happened through banks. With retail inflation now sub-4% and wholesale inflation in negative territory, the governor has still sighted inflation as his primary concern, which […]