Support for Sensex at 11150: Gaba

BSE Sensex (11802): The market cracked and has closed below the all-important support of 11900 but has yet still managed to close above the crucial support of 3566 and so a bounce is possible in this down move.

The support for the Sensex is 11150 and the resistance to the up move is at 12382- 12783.

Nifty (3602): The support for the Nifty is at 3566-3401 and the resistance to the up move is at 3758-3790-3867.

Source: MoneyControl

Six tips for small investors when markets fall

NEVER forget that what goes up, must come down.

This rule, I believe is the cornerstone of a successful and contented life. A sudden rise in the stock indices may have you smiling from ear to ear. It's the slide that tests your real strength.

And if the current slide makes you feel timid, wealth gives you these six tips.

1. Hear no evil
Forget about rationalising and explaining (or listening to other people explain) why stocks are falling. It's a pointless exercise.

2. Remember the bad times
File the experience away as a worthwhile reminder of how risky the stocks are. Draw on that memory during the next market boom when optimistic market seers tell you that stocks are not risky.

3. Don't wait it out
If you believe, based on your preferred market measure, that stocks have over corrected, don't wait for the correction to end. In my case, I was investing in 1997 through 2008 -- it had nothing to do with the equity markets. It was a conviction that long-term monies should be in equities. So, if I have long-term money, it goes into equity, other wise it goes into a money market mutual fund.

4. Be contrarian
Recognise that even if you are right about the market overcompensating for past mistakes, there will be months of pain before the gain. Being a contrarian is easy on paper but much tougher in practice.

5. Change of perspective
Markets will go up and go down -- you cannot change that. You can change the way you look at it. When you have money you will invest, when you need money you will sell. There is no call to action based on 'what the market will do'. So that does not matter.

6. Get real!
Console yourself with the recognition that the professional portfolio managers and the market experts you see on television are staring into tele-prompters not crystal balls.

These tips should keep you afloat even if things go from bad to worse. And when they do, here is another rule for you to remember : No Matter How Bad things are, remember they can always get worse! And on that happy note, I shall bid you goodbye.

Source: MoneyControl

Sensex loses 41% in 2008

It was shocking day of trade for the Indian equity markets as the BSE Sensex has lost over 5%. Year to date, it lost over 41%. On January 1, 2008, the Sensex was around the 20300 mark and today it is trading at 11858.



Year to date, Realty was the worst performer sector among all sectoral indices; it slipped over 76%. Sector like metal, power, capital goods indices have lost over 50% from January 1, 2008.

Source: MoneyControl

Market crash: What should you do now?

WHEN the going gets tough, the tough get going.
-- Billy Ocean, singer.

That really sums up what it takes for a retail investor to survive in these volatile times -- nerves of steel and lots of courage. If you have poured in a substantial amount of your savings in equity shares or equity mutual funds, and are crumbling under the pressure of the falling markets, all is not lost. We spoke to some of the best financial advisors in the country and they tell you why you should simply not worry!

Stay put for the long-term
Our experts have said it before and they say it again -- equities are for the long term. Certified Financial Planner Gaurav Mashruwala says, "Anyone who has been investing for the long-term should not be affected by the market fluctuations. By long-term I mean seven to nine years."

Financial advisor Sanjay Matai elaborates by saying, "People should continue holding their investments. The current fall has been too sharp and it will take some time for the market to recover. The pain will be longer this time but the market will recover."

Remember: a loss is not a loss, till you sell. So, do not panic by simply looking at the notional loss. Hold on to your investments and watch them turn to profits in the long run.

Why the 'long-term' argument pays
Some number crunching supports this. If you had invested in the BSE Sensex for a one-year period between 1979 and 2005, in 10 out of those 26 years, you would have lost money (see table).

But if you had stayed invested for more than 10 years, your chances of loss would be almost zero. And that too, you would have made an average return of 17 to 18 per cent per annum.

For those who thought equity was a place to make a quick buck, it is time to revisit this belief. If your goals are any shorter than five to seven years, then you should evaluate your investment avenues. Debt is a better bet for short-term investments when you are looking at steady returns.

Source: MoneyControl

Dow closes below 10K first time in 4 years

In the US markets, the Dow Jones closed below the psychological 10000 mark for the first time in 4 years on fears that the credit crisis is spreading its tentacles across world markets. The index however pared its massive losses in the final hour of trade.

The Fed tried to ease Wall Street's pain by saying that the 28-day and 84-day cash loans being made available to banks will be boosted to $ 150 billion a piece, effective Monday. Also loans that will be made available in November to banks also will be increased to $ 150 billion each.

That makes a total of $ 900 billion in credit potentially outstanding over year end. But the US markets didn't find much respite and slumped.At closing bell, Dow Jones ends down 369 points, S&P 500 sheds 42 points and Nasdaq ends down 84 points.

Source: MoneyControl

Time To Invest In Indian Real Estate

There’s a famous saying by one of the world’s most opportunistic investors. A man named Baron Rothschild always advised that “The Best Time to Buy Is When There’s Blood on the Streets”. In today’s economic scenario that saying could not have been truer. If you’re an investor who is willing to put your money in the stock markets and wait for a while then chances are that your wait will be rewarded with excellent returns once the economy gets back on track. One sector you might be interested in investing is the Indian Realty and Real Estate Sector.

The Real Estate sector is one sector that is indicative of the economic situation of the country. We know that all economies move in cycles. There are Booms when the economy and the stock markets are flooded with money. People are optimistic and growth takes place. What we are now seeing is the exact opposite of that called the Recession where people are afraid to invest in the markets and start saving money.

Those already invested are removing their money out of the markets in order to cut their losses and that’s the reason why the Sensex is hitting a new low everyday.

So if you are interested in investing in the Indian growth story via the equity or share market; this is your chance. One must remember that this scenario has been applied to the long term investor-a person who is willing to stay invested for a long time. In the case of the Real Estate sector this could well be worth a wait of 2-4 years, maybe even more.

But if you’re willing to do that then you should be rewarded because the Indian economy despite a recessionary trend is expected to grow at 7% this year alone.

The Sensex crashed today by 700 points and has been falling for quite some time. The biggest losers in this bear run have been the Real Estate sector and the Banking sector. Incidentally these were the same sectors which were doing well when the Sensex was booming last year. Indian Real Estate companies have become heavily undervalued and their shares are being sold in the market for prices which you will not see for a long while.



While investing in Indian Real Estate companies always bear in mind:

· That you have enough information about the company.

· Make sure that their order books are full of projects which will keep their revenues coming in even if they don’t get newer projects along the way for some time due to the current economic crisis.

· Make sure that they have good financial backers and are supplied with credit for at least some time to finish their projects.

· Take a look at their revenue and check if they’re growing and that they haven’t stagnated.

· Their top brass and management are competent enough to see them through these times.

If however you have the cash at hand and don’t want to take the risk of investing in equity you may even want to invest in land directly. Real Estate prices across India have come down so a piece of land or an apartment you can sell later for a higher price isn’t a bad idea.

[Disclaimer: Investing in stock markets involves a person taking a considerable amount of risk. The above article is only of an advisory nature.Statements related to companies and businesses have been made on past performances and do not necessarily indicate their future behavior because economies and markets are of an uncertain nature. Neither the writer nor the site can be held responsible for any action(s) of the reader based on this article.]

Source: theindiastreet

Market outlook and day trading ideas for 7th Oct.

Yesterday US markets cracked badly. Dow has broken its 5 digit mark almost after 2004. It is within 10K now.
Yesterday RBI cut CRR by 50 basis points to increase liquidity in the system. Although RBI stated it as a temporary measure, it is an aggressive timely measure by Reserve Bank of India. Interest rate sensitive stocks will react positively to this news. This would be effectiable from 11 Oct.Though this a good news for the Indian markets we could have rallied today but US markets cracked.
I think we may have a flat to negative opening.
It is advisable to trade minimal.

Intraday Ideas.
Austral Coke & Projects.
Buy above 197 for targets of 205 , 209 & 213.
Sell below 184 for targets of 179 , 175 & 171.
Punj Llyod
Buy above 247.30 for targets of 253 , 256.
Sell below 235 for targets of 230 & 227.50 .
Larsen & Tubro.
Buy above 1100 for targets of 1131 & 1152.
Sell below 1051 for targets of 1029 & 1010.

Source: indianmoneyplus