Investors do not mind paying taxes as tax is paid on gains, unfortunately retail investors are nervous on whether they will see gains at all on equities given the current state of economic affairs.
Resistance levels are areas where the supply of stock far exceeds demand leading to a drop in price. Last week, the index was at resistance and Sensex cleared that resistance level when it went all the way up to 19,300. The Nifty, however, is weaker than the Sensex and has not reached the resistance level yet.
From a medium term perspective the markets seem to be consolidating before making their next move.
Just like previous week, the Sensex continues to be stronger than the Nifty, making the 30-share index a better buy than Nifty.
The charts show a "topping tails" formation which are a bearish signal. Only central bank money printing can change the signal, but they can't print forever.
The trend of rising equities and falling bond yields will continue. India will see Sensex and Nifty rising and ten-year bond yield falling on the back of the USD strength.
Domestic bond market participants have turned bullish on government bonds as seen by record high volumes.
The company's stock price has collapsed by 80 percent since July 2011 after a 12-fold rise during 2008-11.
Both the NSE Nifty and gold are in for a correction, even if there is a short-term rally. This is what the charts are telling us right now
Gold should normally rise if excess currency is being printed. So don't rule out a short-term rise; the other possibility is that gold is signalling a recession ahead
The average Indian is certain of three things apart from death and taxes. One is that banks in India cannot fail, two is that gold prices cannot fall and three is that real estate prices cannot fall.<br /><br />
Fast rallies or selloffs generally tend to be reversed, sometimes with equal speed. The sustainable rallies and selloffs are the ones that move steadily, forming bases along the way.
The 1997 IIB issuance was in the form of Capital Index Bond (CIB), where only the principal repayment was indexed to inflation. The current CIB version of IIBs will protect interest payment as well as principal repayment from inflation.
The loose monetary policy adopted by the Fed is helping keep global liquidity high and this liquidity tends to find its way into economies like India that show promise despite on going issues
<br /><br /> Markets will stabilize at lower levels and climb up. The budget itself is not going to do much for the economy in terms of taking it up or bringing it down
Despite the Fed, US Treasury rates are firming up. Normally, when rates rise, equity should be weakening. What's going on?
BFSI sector garners largest chunk of FII money; robust inflows continue in Q4
The key to reading asset classes in 2013 is reading government policies right. But that's not easy, as some of these policies may fail to deliver.
So while the S&P 500 has been range-bound for the past 10 years, the Nifty has been going places. This makes clear that we will not need breakout new highs on the part of the US markets, for the Nifty to show new strength.
Bourse pushes trading in small companies, says small firms key for job growth
The euro has run up suddenly, aided by short-covering. A stable euro is positive for the markets and the rupee
Equity and bond markets will welcome the 25 bps repo rate and CRR cuts. The Sensex and Nifty will head higher on positive budget expectations while bond yields will fall on expectations of lower fiscal deficit for 2013-14
The trends are clearly changing for markets. What was relevant yesterday for markets is no longer relevant for markets now. You must focus on future trends rather than past trends to position your portfolios.
Thanks to cash transactions, real estate is a Ponzi scheme. This is why real estate prices are going up while rental yields are going down .
The US Fed's targets imply rising equity markets, falling US treasury prices, strong dollar and falling gold prices. Keep these in mind when you position your investments in 2013.
New bank capital adequacy norms under Basel III may prompt central and commercial banks to buy more gold. Get ready for the ride
FIIs investing in India believe that risk-return trade-off is positive, given the current levels of the Sensex, Nifty, 10-year government bond yield and the rupee.
Indian indices are weaker than global ones for many reasons. The next may provide some better clues on the direction
How does an average Indian hedge his or her currency risk? Using currency futures is one way but the cost of rollovers is high and many may not have the knowledge or time or both to trade in currency futures.