Casinos are better than today’s Stock Market!!

Corporate India has had one of the terrible quarters in terms of growth. Rather, last few quarters have consistently came in below expectations. Investors have been waiting for some meat but alas they have got a raw deal! They have bet money at very high valuations that even God would find difficult to justify. In return, did they get any profits from the investee business? We are seeing large amount of funds flowing into the mutual funds on hopes. An illusion that the economy is on the cusp of turnaround has misled many. We do not expect the economy to change course abruptly. We see the process to happen more gradually than what the market expects. Don’t you think the longer it takes, lower will be the yield from the investment made today? Given the stress in the economy, are we asking for enough risk premium? As opposed to what the market feels, the economy […]

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Nifty undervalued as compared to Nifty@MRP, is it the time to Buy?

Nifty undervalued as compared to Nifty@MRP, is it the time to Buy?

What is Nifty@MRP? As investors, we constantly track the Nifty movements. To make investing more profitable and not a game of mere chance, we need a solution, a solution which could help us identify whether the market is grossly depressed or irrationally exuberant. This is exactly what Nifty @ MRP is for! What is the latest value of Nifty@MRP? For Dec’15, considering the free float market capitalization at the MRP of individual stocks and the share price data as of 18th Sep, the Nifty@MRP is at 8385. On 18th Sep, NSE Nifty index closed at 7981, which is ~5% or 415 points below the Nifty@MRP. It indicates that the index is undervalued. On similar lines, the Sensex@MRP comes out to 28094. On 18th September, the Sensex closed at 26169, which is about 7% or 1925 points below Sensex@MRP.   Future Outlook For the past few months markets have been jittery. […]

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Sensex chart

Nifty 4% above Nifty@MRP, past trends suggest a probable correction

What is Nifty@MRP? As investors, we constantly track the Nifty movements. To make investing more profitable and not a game of mere chance, we need a solution, a solution which could help us identify whether the market is grossly depressed or irrationally exuberant. This is exactly what Nifty @ MRP is for! What is the latest value of Nifty@MRP? The Nifty has rallied close to 400 points since the start of the year and managed to breach the psychological 9000 level post budget. This, despite the continuing earnings downgrade in the Dec 14 quarter. What has fuelled this rally? Sentiments have been positive for a while now on expectations of an economic recovery, falling interest rates and hopes of an improving earnings outlook. All this in turn took the FII inflow to the highest level in any year at net $43.5 billion in FY15. Investment in debt was mainly due […]

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nifty chart

Nifty Technical Outlook Post Budget

Nifty is trading in the broader range of 8500-9000 since last 6 months and a lot of Investors are wondering whether it has the strength to further move-up or has it already made a top.  So, here’s a technical perspective on the same.While fundamental analysis is the way to go in identifying reasonable valuations; technical analysis might just aid you in taking those decisions. This technical research article may help us to reasonably identify possible directional cues for Nifty from hereon. As per Technical Analysis, Nifty is in a “Bull Trend”. A Bull trend simply means that Nifty is likely to continue to move up. A bull trend is identified by a series of rallies where each rally exceeds the highest point of the previous rally. The decline between rallies ends above the lowest point of the previous decline. As we can see from the chart below Nifty has been […]

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Category:Economy, Learn

Investors waiting at the finishing line!

In anticipation of major policy shift at the centre, investors have poured huge amount of capital in equity markets. They were patiently waiting at the bay till late December 2013 to see if there was a remote chance of improvement in business activities across the country. Elections results of Rajasthan, MP & Chhattisgarh gave investors a hope that the voters are likely to challenge the status quo and choose Modi’s vision of inclusive growth and development agenda at the central elections. The market rally began well before Modi’s rigorous national election campaign. Investors expected that the Modi government will do away with the policy gridlocks of the previous complacent government and dark clouds hovering over the companies would clear. However, growth agendas take time to materialize due to high public investments required at the initial stages. We can experience a similar situation now. Extremely high optimism surrounds the Arun Jaitley […]

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