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