August 2014

 MARKET BOUNCES WITH VIGOUR

Trading levels --- 25^th  / 28^th  August   2014

I am writing after two weeks. In between market has bounced back with a new found vigour. 8^th August turned out to be an ISLAND REVERSAL day.  Market had gapped down on 8^th and it opened strong gap up on 11^th August - the following day. This is normally considered a strong trend reversal signal and it has proved to be like that. We have moved up over 400 NIFTY points with 8 out of 9 trading sessions giving  a positive close.

BANK NIFTY which was looking extremely week - two weeks ago, is sitting at all time high now. IT / PHARMA / FMCG … all have chipped in during the last two weeks and catapulted the NIFTY to all time closing daily and weekly high.

NIFTY is now pushing 8000 … which was looking a distant target  two weeks ago.  The FIIs have not been overly aggressive  but on many days we have seen DIIs also turning positive. This has probably done the trick.

I am watching NIFTY very curiously as it has broken out of 7450/7850 range. Whether this break-out is sustainable or a false one will be known in the coming week.

Investors and traders  - who think from heart – are looking at 8000 as first step towards lofty targets by the  financial year end,  while people who think from the head, are getting worried as market seems to have run much ahead of fundamentals. When that happens the margin for error is grossly reduced and we can get nasty surprises. THE GENERAL INVESTOR – WHOM MANY REFER AS RETAIL INVESTOR – HAS NO STOMACH FOR NASTY SURPRISES.

Hence, I will recommend this class to lock-in the gains and move that money to fixed income instruments which give good returns. You can buy good NCDs with yields ranging from 10/11 upto 13 %. JUST GRAB THEM.

IT SEEMS I WILL HAVE TO EAT MY WORDS 6800/7200 BEFORE 8000 …. BUT I ALWAYS SPEAK MY MIND. I ALWAYS PREFER TO ERR ON THE SIDE OF CAUTION. IN THE LONG RUN, THAT HAS TURNED OUT TO BE A BETTER STRATEGY FOR SOMEONE WITH LIMITED RESOURCES.

As I always say, we have to play percentages to make money. Bold bravado or blind following  does not help.  I HAVE JUST GIVEN YOU SOME FOOD FOR YOUR GREY CELLS. WHAT DO YOU SAY ? ? ?

AUGUST  2014 TRADING LEVELS are out  on 1^st AUGUST . You can have a look at the same before entering fresh trades. I have also released CY 2014  trading levels  on my website – http://www.sumamura.com/sumamura-messages/. 

Please remember CAPITAL is always scarce and needs to be respected.

My monthly trading levels are out and paid members have them. At 3,000 rupees a year, they provide tremendous value for money proposition.

Keep logged on to yahoo messenger for guidance related to investment levels on specific stocks. I will be putting some of those recommendations on my website also under messages tab as well.

I am available on yahoo messenger on most of the trading days and you can add me on your yahoo messenger. My yahoo id is madhavranade1

Keep watching my website www.sumamura.com closely for further inputs. You need to register and login to see modules section where all the levels for different timeframes are  shown.

You can view individual modules for as little as 3,000 rupees per year. A package for all  8  modules for  just 30,000 rupees  for the full year.

Please call me on 9371002943 for more details.

Indices  weekly levels

 yesterday i was away .... on tuesday ... i had suggested 3 PUTS as possible doublers .... ONGC PUT doubled same day ....

 yesterday i was away .... on tuesday ... i had suggested 3 PUTS as possible doublers .... ONGC PUT doubled same day ....