Markets Tomorrow

Issues and Risks

>Yes, it's obvious that all will keep rising.
All that you have to do is to either stay long in what you have already, or buy
more Nifty futures from today till next Thursday's short-covering-day-by-thescorched-
bears.
>Above all else, the basket makes the best sense over single stocks because if
the Hedgies buy all the Reilance shares today, they'll stop doing that on a given
day this week or next and shift to buying the Birla or Tata shares. Buy everything
they will, but will keep rotating from group to group. So while you cannot make a
great call in saying so-and-so share will keep on rising till next Thursday, you'll be
much better off buying the Nifty. That'll bring home the bacon like it's not done for
the past three months.
>Calcutta's bears are back in manufacturing up some story or the other about
doomsday this week and next. If it's not about Citibank going into some amazing
thing like closing, then it's about the Left Front's plans with Mayawati. Be sure
that the bears at Calcutta and short-side Hedge Funds in S'pore or Hong Kong
have been done for in their massive short positions they started off since
Monday's collapse.
So expect more stories all day, and believe none.
They want you to sell and short.
Don't even think about it.
Just go long and buy any dip and weakness from today till next Thursday.
Yes, sure there's a margin and exposure issue for any and every brokerage in
the country. And yes many terminals are still switched off by the NSE.
Good. NSE is meant to do that if cash doesn't come in at pay-in time.
But we say, so what?
Let the NSE do what it has to.
FIIs and long-short Hedgies have been buyers of the Feb futures since Tuesday.
And they'll buy even more of that today and tomorrow and next week...all the way
till next Thursday.

Ofcourse, they too won't stand in the way of any falling knives from now till next
Thursday if there are fresh collapses in the US or Europe.
They'll just stand aside for a couple of hours and get back to their ONLY JOB of
buying Feb at any lower rates.
Expect a net-rise till Thursday even if volatility should rule.
>Copper collapsed on assumptions that a real slowdown in the US has already
brought down the larger demand for use of copper in new homes. But you know
that copper is a great inter-market-analysis thing for most players in the world.
Copper also tells you the health of the larger global economy. And right now it'
saying that things don't look so hot for the rest of this year.
>Wall Street did alright last night after Regulators came together to announce
some sort of package for Bond Insurers like AMBAC.
All financial stocks recovered hugely after that.

Good for our banks here today.
Good for buying the Bank Nifty over any single bank stock.
And ICICI, SBI and HDFC Bank will rise for sure.
And then will ALL the other banks.

If the Fed does indeeed cut rates again on the 30th, then that's even better for
our bank stocks here.
>Land and construction shares will rise even more today because of that rate cut
of 75bps in the US.
Getting monies from the US and make buildings in this country just got cheaper.
>The euro fell again on the yen and dollar after it was assumed that the ECB
doesn't have any choice but to cut.
Mister Trichet has managed to hold out by not cutting for many months and he
may continue obsessing over inflation-management over recessions...But The
Street thinks he's now over his top.

The Fed makes the rules, and every central banker HAS to follow it.
And right now Bernanke is saying: CUT, CUT, and CUT this year.
>Lastly, the post-Budget subject for you to mull about
We're seeing a bearish side in the market after the Budget.
We say you should be looking for every rally from now till mid-Feb to sell your
longs and holdings.
And be in 100% cash before Monday 18th Feb, which is again that Monday
before the Feb's F&O expiry. Surely you know what'll happen that day and the
next?!!
So be in cash and get ready to short the Nifty after the Budget.
One million year RULE
The stock market casino doesn't follow companies.
It's companies that follow this casino.

What to expect today, this week, and going forward
>Up, naturally.
Up in the opening.
And then the usual confusion and doubt and so volatility.
But expect a net-rise in the last part of the day.
The Nifty stays your best buy in the afternoon after profit booking stops.
Talk and noise:
>Funds to BUY and drops...till next Thursday

Buy for 7-15 days :
>RNRL
>RPL
>Nifty
>Bank Nifty

Daily Trades ...Only with TIGHT stops...DO NOT c/o
>Nifty
>Bank Nifty
>RNRL
>RPL
>RCom
>Edelweiss
>Religare
>Kotak