Stock Market Supporting News

- China’s economy figure, declared yesterday, and increment in Stimulus package, declared in Nov 2008, was proven like oxygen for all markets. Shanghais index was closed 6% up and European, US market was also trading in dark green mood. But we didn’t see that much upward rally in Indian indices as FIIs are still selling their holding from banking stocks.
- China had also confirmed some metal orders for current financial year. That has given base to all commodities metals (except gold & silver) and which results in commodities price increase yesterday.
- Precious Yellow (GOLD) and White (SILVER) metals are trading lower around $5 (Rs. 300) and Crude also jumped 4 to 5%. As we could learn from past experience that profit booking in Yellow metals will bring some buying interest in secondary stock market.
- Down fall in Rupee against dollar is the main reason to worry. But we saw that rupee closed up 47 pc after 7 sessions.
- RBI has cut Repo and Reverse Repo rate by 0.5% which was expected to be 1%. But RBI’s move is very good for long run. As cut in Repo and Reverse Repo will be good for short term but it will increase inflation in long run and also more rate cut is sign of bad economical condition.
- All banks have chance to decrease landing rate to some extent but they will enforce some strict rule before giving loans. So at low rate it will not be easy to get loans. All Private sector banks should decrease home loan rate at least 1%. Some have even started decreasing. But builders are expecting loan rate to go at 6% which should not happen as we don’t want crisis like US and low home loan rate will drag our country towards recession.
- Indian Export has increased 19% in Feb 2009 which also help us to reduce import which in turn drags dollar demand lower and hence we can see some Rupee appreciation.
- Today is the inflation rate declaration day and we may see slight drop in inflation (can be unchanged).
- Still waiting for LIC Cash Flow in Market which can come any time in March.

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Conclusion
- Buy Metal, OIL & Gas, IT stocks but keep short term vision only.
- Don’t Enter into Bank and Real Estate stock for long term. Book profit on rise.
- Don’t enter into Steel Stocks as we will see Steel Price drop in short time so wait for 3 months before taking any position. Better is to book profit on short term bounce.
- My Nifty @ 2180 target is intact.