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Stocks

Don't Panic

As I speak, the markets are shut on the lower circuit. Last night, SEBI threw out a request for comment for banning p-notes on derivatives, and it seems this has spooked investors. With the Nifty and the Sensex down 10% in less than 10 mins, the market wide circuit breakers kicked in and halted trading for one hour.

Don’t panic. This is not as big a deal as the media, the TV channels and everyone around you is making it out to be. Let it ride – big falls are accompanied by big rises, almost instantly after some “clarifications”. As I’ve said before, this market is looking for a reason to fall, so some overreaction is expected.

Secondly, let’s analyse the paper, shall we? I’ll put that in a different post, as life begins to unwind in the markets again.

  • Cé$âr says:

    >no panic.. 🙂 but it this the right time to buy? or should one wait for a week or so..? do u foresee any after-effect leading to downturn thusbuying opportunity in the near future? thanks !

  • Cé$âr says:

    >after all the Govt plan of inducing a crash/correction prematurely failed. markets are recovering. so the “real correction” surely is pending?!

  • Anonymous says:

    >Can someone explain in simple terms with example how FIIs make money by buying in Cash market and selling in futures market using yen carry trade. They say it is risk free. I am curious to know how this is possible to make these sure bets.

  • Guruprasad says:

    >OCT 25 is the D-day. Yesterday our FM and people close to him and his Bhenomy might have made billions of rupees.I’d recommend to go short in HDFC, ICICI &AXIS. These companies have given tremendous results and are darling for FII community. I believe that India is awaiting for serious correction within next 6 months. If government changes, I wholeheartedly believe that a possible CBI enquiry would happen for the erroneous and unrealistic price movements of markets(For ex, JaiCorp & Reliance Infra, For kind info, I’ve made huge money in both the scrips, but that is different story).I’d pick up shares that are really available at most comfortable levels viz., Astramicro, Investmart, Sasken, LIC housing and few others. I personally believe that traders could make money only in momentum stocks viz., Reliance Pack, Bhel, LT, Bharti and others. Even these scrips falls, they’re witnessing huge buying interest. Only 50 stocks are participating in this rally. What about others? Don’t ask me anything. Ask our FM who is saying Long term story of India is intact. I’m skeptical!

  • suresh says:

    >Deepak,

    There seems to be a significant delay in your feedblitz alerts. I received alert for this post just now. and I haven’t yet received any for the 2 new articles posted after this.

    Cheers