A summary view of the Indian markets as I see it

Dear member,

Thanks for your compliments and your questions. At present, the service is free and I would keep it that way, till I work out and arrange for back-end infrastructure and support etc. But if I at all charge any fees for powerfulpicks recommendations, I would keep it affordable for small investors, unlike many of the good services running at present, which charge around Rs 3000-Rs 10000 per month.

The markets are at present a bit tired and needs to rest. They ran up quite fast and needs to take a breath. On top of that, today (last Thursday of the month) was the expiry of the derivatives and hence it was expected to be volatile. The global signals are also weak and suggesting some form of mild correction in global markets. On top of that, as I had predicted, the Q2 earnings are not as promising as the Q1, primarily due to higher base effect, lower production due to monsoons (for some companies) and higher raw material prices. Overall, these are the reasons for today's sell off towards the end. But the last few days patterns were chart showing up that something like this would happen. I am expecting some more cut in next few days and NIFTY can drift down to even 5870-5900 range. However, this is not a panic situation and I expect a new high in NIFTY / SENSEX by January 2011. Historically, companies perform much better during Q3 and Q4.

I have already shared my opinion on UCO BANK and VIJAYA BANK.

On Thu, Oct 28, 2010 at 6:46 PM, _____ wrote:

Dear Sir,

I wanted to know what is your view of the wild swing of Nifty today. Noone expected a fall after 3 pm. It would be tremendously helpful if you can in the morning advise us on the Nifty as well. I would also suggest a fee for the recommendations you provide sir, as humble gurudakshina from us sir, what with the distraction we all provide you sir. I am new to the board and have started with investing in Satyam based on your call. Studied your calls for sometime and finding them sharp and accurate. Planning to strictly start invest on your recommendations from Muhurat Trading sir. I also wanted your views on Vijaya and Uco Bank. Shall we hold or sell them.

Uma