Golf

If I struggled to get up yesterday, today was even tougher. I met with 4 management college friends at my golf club where food is cheap and whisky even cheaper. Actually had a great time. The one friend who had been the funder of almost all our booze sessions during college days has given up on all the good things in life and turned to spiritualism. Others were trying to save his soul and bring it back from the brink before it got completely lost in the bright alleys of spiritualism. And I was having a great time watching all this.

I am sure you find all of this very interesting and I would have loved to go on, but all good things must come to an end so unfortunately I will have to leave this interesting discussion for another time and talk about markets. Any of you who are interested in the gory details of what happened last night can call me up and I will let you in on them.

Well, markets had an interesting day yesterday. Nifty cracked below my crucial 4585 levels. The speed at which it cracked in the last one hour induced paralysis and I could barely manage to sell my long positions. I should have been short but am actually not totally exposed on the short side. The interesting thing was that at the time this was happening, nobody knew why was the sell off happening and why was it so strong. The only thing I know is that these kind of sharp sell offs in a bull market typically tend to be short lived. I am therefore quite worried about my short positions. I do think it is very likely that the sell off could end and that a new rally can begin.

The overall trend is still up for equities and commodities. Dollar continues its downtrend. Only question is whether yesterdays fall signifies an end to the trend of equities and commodities. My submission is that it is too early to tell. We need to wait for some more time for confirmation of this.

The 3 stocks and 4 indices that I track are given below.

RIL: long since 31st July from 1960. Target 2300. Stop 1870.

ICICI Bank. Long since 30th July at 745. Target 840. Stop 720.

Infosys: Continue long positions.

HSI: long since 31st July at 20670. Stop 20100.

HSCEI: Long only above 12460.

KM1: Continue long positions.

NZ1: Short since yesterday at 4580. Stop 4680.

Those who have managed to read till here need to be rewarded!!! So I have an intraday trade for you guys. Buy the Nifty at a limit price of 4520 with a stop of 4480. Target 4600.

Thanks for your patience and your feedbacks. I love writing this note. I hope you like reading it too. Despite all the irreverance of the note, I am serious about my calls on Nifty and stocks. Those calls are not made frivolously.

P.S Finally the point of the note. If you notice I said in this note that I am a member of a golf club. This one is the best in Bombay. If any of you want to play a round of golf I can arrange it.