PM speech ON August 15 was well received by media and given lot of coverage. It is anticipated that it could give new boost to the market.
By and large there was nothing new.
All earlier PMs were asking foreign investors to invest in India. Everybody was talking about reducing poverty. In past everyone spoke about reforms. In broad sense there was nothing new, but in all business channels social media and business websites this is being portrayed as one of the greatest speech ever by any PM. According to media. this gave direction to our country.
How SGX NIFTY reacted?
After NAMO's talk it went down by about 50 points from the top. It did recover during the day but did not cross the top.
It again dipped after EU and US markets went down on Ukraine worries. But recovery was much sharper too, or I must say much faster than western markets. So there is very positive under current. Investors are believing in India and in Modi. Lot of them must have missed earlier rally and would like to buy on every dip.
European indices down by 100 points, DOW is down by 100 points and SGX NIFTY is mere 10 points.
Perhaps one could see marginal gap down opening and gap could be filled within no time. Again NAMO effect. About banking, "dhan jodo yojana" ie bank account and Rs. 1 lac insurance for every poor (I am not sure how poor is defined here), it could be good for our nation in long term, but there is no direction by NAMO, from where money will flow in. Ultimately, it will be of investors' and tax payers' money and I am not sure whether investors will be happy to hear that. A normal investor would think for himself first and then nation! He would withdraw his funds from PSU banks and insurance companies for the time-being.
How to trade this view?
Buy PUTs, they are cheap.
Buy NIFTY 7700 PUT between 30-35, buy BN 14600 PUT around current market price.
This has a potential to give good returns on very small investment.
Disclaimer: This blog does not take any responsibility of your profit/loss
By and large there was nothing new.
All earlier PMs were asking foreign investors to invest in India. Everybody was talking about reducing poverty. In past everyone spoke about reforms. In broad sense there was nothing new, but in all business channels social media and business websites this is being portrayed as one of the greatest speech ever by any PM. According to media. this gave direction to our country.
How SGX NIFTY reacted?
After NAMO's talk it went down by about 50 points from the top. It did recover during the day but did not cross the top.
It again dipped after EU and US markets went down on Ukraine worries. But recovery was much sharper too, or I must say much faster than western markets. So there is very positive under current. Investors are believing in India and in Modi. Lot of them must have missed earlier rally and would like to buy on every dip.
European indices down by 100 points, DOW is down by 100 points and SGX NIFTY is mere 10 points.
Perhaps one could see marginal gap down opening and gap could be filled within no time. Again NAMO effect. About banking, "dhan jodo yojana" ie bank account and Rs. 1 lac insurance for every poor (I am not sure how poor is defined here), it could be good for our nation in long term, but there is no direction by NAMO, from where money will flow in. Ultimately, it will be of investors' and tax payers' money and I am not sure whether investors will be happy to hear that. A normal investor would think for himself first and then nation! He would withdraw his funds from PSU banks and insurance companies for the time-being.
How to trade this view?
Buy PUTs, they are cheap.
Buy NIFTY 7700 PUT between 30-35, buy BN 14600 PUT around current market price.
This has a potential to give good returns on very small investment.
Disclaimer: This blog does not take any responsibility of your profit/loss
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