Archives : TERRORIST BEARS EXERT CONTROL - 28/11/08

Terrorist “Bears” Exert Control - 28/11/2008.

 

It started of as a Black Wednesday, Thursday was darker than Wednesday and Friday was once again full of panic. Black Wednesday, Black Thursday and finally Black Friday.

My heart goes out to all those were stuck up in the hands of the terrorist. I salute those who died fighting against the coward terrorists who were shielding themselves by holding hostages. 

This is the first time since 1993, the stock market had a forced holiday imposed on it due to the terrorist attack. The expiry which was on 27 Nov. 2008, was postponed by a day to Friday. 

The Terrorist attack will have a short-term negative impact on the economy and the stock markets. The direct impact will be visible in the slowdown in tourist arrivals. The effects of this attack will recede with time only if there were no further attacks. Terrorists armed with grenades and rifles stormed into Mumbai city, India's financial capital, late on Wednesday, 26 November 2008.

The battle between the police and terrorists at Hotel Taj, Nariman House and at Oberoi Trident in Nariman Point lasted over three days. Just shows how prepared were these terrorists and how Mumbai just became a sitting duck for these terrorists.

Direct Impact of Terrorist Attack. 

  • Hotel Business.
 
  • Airlines.
 
  • Cinema Exhibition. 
 Economic Numbers Better. 
  • Inflation Softens Further. 
  • Good GDP Numbers.

 SENSEX.

NIFTY.

LAST WEEK’S RECOMMEDATIONS:

Simply Terrific was how one can describe last weeks performance, as almost all the targets were achieved with effortless ease. But the STAR buy of the week was BPCL. 
  • Buy IVRCL Infra 131 Tgt was 141 reached 141.
  • Buy RPL 73 Tgt was 78 reached 78.
  • Buy SAIL 62 Tgt was 67 reached 70.
  • Buy HPCL 228 Tgt was 245 reached 246.
  • Buy BPCL 327 Tgt was 345 reached 370.
  • Buy Cairn 136 Tgt was 144 reached 144.
  • Buy Nag Const 59 Tgt was 65 reached 64.
 

If one had bought 2000 shares of IVRCL INFRA and CAIRN, 4000 shares of RPL, SAIL, NAG CONS., 1000 shares of HPCL and BPCL, then one could have earned a whopping profit of Rs. 169000/-!!!

THIS WEEK'S RECOMMENDATIONS: 

Watch Out For:

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Terrorist “Bears” Exert Control - 28/11/2008.

 

It started of as a Black Wednesday, Thursday was darker than Wednesday and Friday was once again full of panic. Black Wednesday, Black Thursday and finally Black Friday.  

My heart goes out to all those were stuck up in the hands of the terrorist. I salute those who died fighting against the coward terrorists who were shielding themselves by holding hostages.

This is the first time since 1993, the stock market had a forced holiday imposed on it due to the terrorist attack. The expiry which was on 27 Nov. 2008, was postponed by a day to Friday.

The Terrorist attack will have a short-term negative impact on the economy and the stock markets. The direct impact will be visible in the slowdown in tourist arrivals. The effects of this attack will recede with time only if there were no further attacks.

Terrorists armed with grenades and rifles stormed into Mumbai city, India's financial capital, late on Wednesday, 26 November 2008. The battle between the police and terrorists at Hotel Taj, Nariman House and at Oberoi Trident in Nariman Point lasted over three days. Just shows how prepared were these terrorists and how Mumbai just became a sitting duck for these terrorists.

Direct Impact of Terrorist Attack.

Hotel Business.

Indian Hotels (Taj Group of Hotels) and EIH (Oberoi Group of Hotels), will be affected negatively after gruesome terrorist attacks on both flagship hotels in Mumbai. Both the hotels will stand to loose heavily on account of the blasts and the fire that followed. The goodwill generated over the years, will be gone as the main business of both the hotels come from foreigners and the Live television coverage will certainly not help in enhancing their goodwill.

Airlines.

The terror attacks on Mumbai could also hit airlines firms for the next two-three months as the air traffic following the terror attacks, will slide dramatically. The new business developments will certainly be postponed or cancelled. Airlines stocks like Jet Air, KingFisher Airlines and SpiceJet will be impacted negatively.

Cinema Exhibition.

Cinema operators will stand to loose on the business as the government has issued a directive to stop screening the movies as a precautionary measure following the terrorist attack.The listed entities like Adlabs, PVR cinema, Pyramid and Inox stand to loose, not only on the ticket sales front but also on revenues from food and beverage sales, which account for a major chunk of their total collections.Already they are struggling, now they will loose out on the weekend business as well, where the ticket prices are higher as compared to any normal day.

Economic Numbers Better. 

  • Inflation Softens Further.
Inflation remains at single digit for third consecutive week, after remaining in double digits for more than five months. The lowering of inflation figure can be attributed to the down fall in prices of oil and other commodities. Inflation for the week ended, 15th November 2008, came in at 8.84% slightly below the previous week's figure of 8.9% The consistently lower inflation figure should give the RBI a chance to reduce the interest rates in order to arrest economic slowdown and shore up investor confidence. 
  • Good GDP Numbers.

The GDP grew a better than expected 7.6% in the second quarter ended September 2008 from a year earlier. The growth was lower when compared to the previous quarters 7.9%.

SENSEX.

Sensex opened the week at 8840, made a high of 9182, made a low of 8649, and closed the week at 9092, thus registering a weekly gain of 177 points. The MACD indicator has signaled a BUY and is moving up.The Trendline Support is at 8585-7716 and the Trendline Resistance is at 9798-10124.

For the week ahead the Resistance is at 9182-9570-9798-10124. Support is at 8889-8649-8316-7716.

NIFTY.

Nifty opened the week at 2690, made a high of 2790, low of 2633, and closed the week at 2755. The weekly gain was 62 points.The MACD indicator has signaled a BUY and is moving up. The up move will continue as long as the Nifty remains above 2502. The Trendline Support is at 2596-2334 and the Trendline Resistance is at 2809-3167.The O.I. PCR is at 0.92. Put writing is visible at the strike of 2500. This level will provide strong support in case of a fall. Nifty Calls at the Strikes of 3000 and 3200 has seen lot of addition in open interest which will provide resistance.

For the week ahead, the Resistance is at 2809-2860-2949-3161. Support is at 2633-2502-2334.

LAST WEEK’S RECOMMEDATIONS:

Simply Terrific was how one can describe last weeks performance, as almost all the targets were achieved with effortless ease. But the STAR buy of the week was BPCL. 
  • Buy IVRCL Infra 131 Tgt was 141 reached 141.
  • Buy RPL 73 Tgt was 78 reached 78.
  • Buy SAIL 62 Tgt was 67 reached 70.
  • Buy HPCL 228 Tgt was 245 reached 246.
  • Buy BPCL 327 Tgt was 345 reached 370.
  • Buy Cairn 136 Tgt was 144 reached 144.
  • Buy Nag Const 59 Tgt was 65 reached 64.
 

If one had bought 2000 shares of IVRCL INFRA and CAIRN, 4000 shares of RPL, SAIL, NAG CONS., 1000 shares of HPCL and BPCL, then one could have earned a whopping profit of Rs. 169000/-!!!

 THIS WEEK'S RECOMMENDATIONS:

  • Buy BPCL 355 SL 344 Tgt 366-374-383.
  • Buy Divis Lab 1226 SL 1190 Tgt 1279-1295-1320.
  • Buy Essar Oil 74 SL 70 Tgt 79-82.
  • Buy Educomp 2290 SL 2180 Tgt 2365-2489-2534.
  • Buy GTL Infra 45 SL 41 Tgt 49-52-55.
  • Buy Bhel 1359 SL 1314 Tgt 1391-1433-1467.
Watch Out For: 
  • DIVIS LAB: 1226 SL1190 TGT1279 – 1320 – 1335.

Inverted Head & Shoulders Breakout. Moving Avg Crossover Signaling a buy.

  • Buy GTL Infra 45, sl 41 tgt 52 – 55.
Breakout with Vol, MACD – Buy,Close above 200 DMA.
Disclaimer : The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness.

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