Indian Equities sliding on the Binary Scale…Interest Rates at 10% and Crude Oil at US $ 100 +

Binaries 0 & 1 are byteing into Indian Equities…Binary Trouble…Rising Interest Rate & Oil Prices….Risk Free Interest Rate is now 1 & 0 =>10 % …..and Crude Oil is now 1 & 0 & 0 => US $ 100 + per barrel as tension in the Middle East escalates across several countries

Have a Look at the Sensex swings in the last Ten Days…On February 11,2011 it closed at 17729….it had zoomed to nearly a 1000 points to an intraday high of 18691 a week later on February 18,2011 triggering a lot of ‘experts’ to become bullish yet again….they sway like the Sensex !….and influence Investors across India to sway too !…..A week later we are back down a 1000 points to close at 17632 today….

I had a lot of clients calling in when the Sensex was on the up tick last week and I had to sound a word of caution that one swallow does not make a summer and that the geo political ,Interest rates and Inflation challenges are yet staring us in the face ….I had earlier warned that the Sensex will go sub 18000 and towards 16000….

I daresay this Union Budget will come and go and I admire the courage of those Broking Houses who are releasing Pre Budget Best Picks….as if these Scrips will surge after the Budget and because of the Budget !…..

Tough to be Cautious and Cheerful at the same time…but do try !….Cheers !

SENSEX  OVER TEN DAYS

Date

Open

High

Low

Close

11/02/11

17,519.13

17,752.56

17,295.62

17,728.61

14/02/11

17,940.16

18,227.62

17,857.12

18,202.20

15/02/11

18,260.08

18,361.66

18,050.48

18,273.80

16/02/11

18,273.06

18,358.84

18,216.12

18,300.90

17/02/11

18,345.12

18,532.61

18,233.79

18,506.82

18/02/11

18,564.08

18,690.97

18,159.82

18,211.52

21/02/11

18,238.54

18,457.49

18,082.66

18,438.31

22/02/11

18,390.72

18,457.90

18,187.33

18,296.16

23/02/11

18,233.77

18,377.48

18,150.01

18,178.33

24/02/11

18,135.12

18,135.12

17,559.70

17,632.41

6 thoughts on “Indian Equities sliding on the Binary Scale…Interest Rates at 10% and Crude Oil at US $ 100 +

  1. Hi Gaurav,

    What are your thoughts on sesa goa at current price of rs 284. Shall one enter now or wait for nifty to touch 4800 and below?

    Thanks
    Nitin

  2. Nitin…if keen to pick up Sesa Goa,then consider picking Sesa Industries in the unlisted market…your cost will be between Rs 200 and Rs 250 for the Sesa Goa share when amalgamated…Apex Court has already given the go ahead

  3. I did check with one agencies,its quoting 1100 for sesa industries.Not sure from where to get at Rs 200-250. Pls advice. also sesa goa at 263. is it worth buy at these levels?
    I seem to be asking to many questions.

    Thanks Nitin

  4. Nitin…you will get 4 shares of Sesa Goa for every share of Sesa Industries when latter is amalgamated into the former…therefore Rs 1100 would mean Rs 275 per share of Sesa Goa….too high…Budget has announced an export tax of 20% on all Iron Ore and Sesa is down to 260 today….do not buy Sesa Industries at more than 800…max 850

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