BSE's SENSEX Weekly report card (13/9 - 17/9)

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Indian Stock indices witnessed heavy buying throughout the week and almost in every session, SENSEX closed 795 points up this week thus easily surpassing rest of the global peers, The main reason for a strong bullish environment was strong local demand.

Strong investment by foreign institutions also lead to rally at the dalal street this week. If we see last two weeks performance of SENSEX it has moved up by over 1300 points, All the other global peers have not shown such rally in past two weeks.

The growth in Indian economy by 8.8 percent as told by Pranab Mukherjee also helped in unexpected weekly rally of Bombay Stock Exchange's SENSEX, At end of the past week SENSEX closed at 34 month high and shall touch 20000 in coming weeks, but however the chances of correction in prices can be expected anytime.

National Stock Exchange's NIFTY also closed in green on friday, but Indian Stock markets may open in red on monday.

The rise in foreign Institutional Investors in Indian stock markets for month of september has been the major reason in a spur in Indian stock indices like SENSEX and Nifty. According to market regulator SEBI FII's have invested over $2.67 billion in Indian markets this month already and this would increase as the month progresses, and if we look at year till date then FII Investment has already crossed 16 billion mark.

Don't know exactly when the Institutional investors would be again on selling spree, and if they do in near future for booking profits then IT stocks would be worst hit according to me.

BSE SENSEX | Indian Stock markets ready for correction

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If we go by the predictions about global stock markets prevailing in market, then a correction in Indian stock markets is bound to happen next month...it's a rumor though but who knows if the prediction comes true.

If we see some correction in indian stock markets(while it follow it's global peers) or the second dip in global markets (read full) next month(as the prediction goes) then Sensex might come at levels of 15000 to 16000. Which looks the correct valuation of Indian markets looking at economic conditions presently.

Then RIL should be the worst stock to fell and it would become the best time for longterm investors to invest in correct valued stock after the fall in september 2010.

The rise and rise of BSE SENSEX | NIFTY and Indian Share Markets

hmm long time since i posted the analysis of indian share markets particularly benchmark indices like 30 share index SENSEX and NSE's NIFTY,

Have anyone noticed the trends of growth of indian share markets especially BSE's SENSEX??

i was noticing the trend this time(when US Stocks are reeling under reign of bears from last one year (oficially..) the reason for growth of BSE SENSEX this time(at the levels of 16700..presently) is cent percent indian ie this time indian stock markets have increased because of pure indian investor's.

ok let me explain this with respect to FDI's last time when indian share markets were hovering at 16000 levels the conversion price of US $ was at 45 IN|R for one US $ (if i am not wrong) and when SENSEX touched the 21000 levels US $ was at 39 INR/$ which clearly depicts that previous year's stock rally was due to increased Foreign direct investments in indian businesses and Stocks how ever this is not the case this time around

I may also strengthen this by comparing the US $ price wrto INR this time, SENSEX has crossed 16700 levels but still US $ is hovering about 48.48INR/$ so indian investors have invested a lot of their hard earned money into indian share markets this time around and that too from long term investment point of view may be investor's are waiting for the time when US institutional investors would come back to indian markets and this would be time when indian investor's would sell off their shares and earned huge profits from it. and if US$ starts weakening then it is clear indicaion about foreign currency flowing into indian markets.

So long term investor's can buy realty stocks, IT stocks or banking stocks and may sell them when FDI starts coming into BSE SENSEX or NIFTY or any other regional stock markets of india. and according to my prediction indian markets will touch new highs when US $ would come again at INR40 levels.

Sensex can touch 19,500 level this year

(26/5/09 SENSEX futures) - Driven by the election outcome, the benchmark index Sensex could catapult to 19,500 level this year, provided the government pushes through the reform agenda, analysts said.

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Market experts believe that the reforms expected to be carried out by the new government may keep the market sentiment upbeat and propel the index to regain the levels, it had seen in 2007, in the months ahead.

"Our upside target for the Sensex is 19,500 this year which the index may climb if the government surprises us with a phenomenal budget," Morgan Stanley Managing Director Ridham Desai said in an investor summit arranged by a television channel here.

However, more probability for the index is to remain in mid-15,000 levels or about 10 per cent higher than current levels, he said.

The financial sector reforms which are there before the government include raising FDI cap from present level of 26 per cent from 49 per cent through amendment in Insurance Act, pension reform and banking sector reforms.

Sensex may fall to 11450 if 11750 is breached

One of the reputed securities firm advises investors to be a gradual investor at major support levels like 3510 and 3350 on the Nifty with a medium term view in mind. On intra-day basis, it expects the Sensex to trip to 11450 if it fails to hold on to 11750 support. Here one can take fresh long trades and make partial investments in the market.

Also read -
-World's top 10 most valuable brands list
-TATA'S are more reputed then Google, MSoft
-BSE aims at internationalization of listing businessNEW !!
-Effect of Recession on Indian Economy
-Economies hit by recession
-World's Strongest economies list

“The market remained in a very narrow range through out the week with a huge volatility inside the range. This suggests us that the market is at paused levels and is deciding which side the go. However, the break of range on the "lower side" will readjust the prices of many index heavy weights and may strengthen the current on going trend of the market. On failure to do so and upward break out may compel long traders to trade long with a high risk in the market.

Also read -
-World's top 10 most valuable brands list
-TATA'S are more reputed then Google, MSoft
-BSE aims at internationalization of listing businessNEW !!
-Effect of Recession on Indian Economy
-Economies hit by recession
-World's Strongest economies list

Here we are calling it "high risk" for long traders because, the risk reward ratio is not suitable to trade long above 3700/ 12300 levels in the near term as the confidence levels may below above those levels. If we take the reading of major oscillators then we may say that they are diverging negatively to the price. Second, the prices are at their major resistance levels without any major correction since 3300 levels. Third the final countdown to the current elections will start and that will keep the sentiment mixed at higher levels. And last but not least is that the world markets are also on the verge of completion of the current rally as they are also near to their major resistance levels and are due for temporary correction in the near term.