The Fitness Revolution

The market is out to get me. Like I said in my previous note, it posed several questions yesterday. I have somehow managed to stick to my discipline and do nothing through the day even as the Nifty moved up and ended in the positive. I remain short on the Nifty. I will cut my short and go long as per STT above 5524.10 and will cut my short and go long as per LTT at 5610.10.

But let me tell you, I get this feeling that something is not right. It is one of the few times in my life that I have seen Reliance down by 2% and the Nifty still go up. I can feel it in my gut that something will give soon. Then the market will trend in some direction.

Now that I am talking about feelings instead of systematic trading let me share another feeling. The fasts by Ramdev Maharaj and Anna Hazare has had several reactions from the public-some good and some bad. Now I hear more people are planning to use this tool to press their own demands. While on the face of it, it looks like a negative, deeper introspection will reveal the strong beneficial impact it can have on the market. (I have all the time in the world and introspection is what I do. Lot of people might mistake my introspection phase as wasting time, but their confidence in this assumption is directly attributable to a lack of introspection on their part)

This fasting can soon become a fad. Anybody with any grievance can now fast to press their demands. Soon we will have employees doing a Ramdev for a day (no solids but water laced with honey and glucose is allowed) to demand a raise. Problems with your husband? Solve it by doing an Anna for a day (No solids... only water allowed). A boyfriend/girlfriend not paying enough attention, no problem, do a Ramdev for half a day. More serious problems do an Anna. Not only might your goals be accomplished but you will also become fitter. Imagine what can happen if this fad catches on. Fitter Indians, healthier Indians and since we are all eating less, less demand for food items and consequently lower food inflation.

I do not have to tell you what can happen when the market is caught by surprise with a drastic drop in inflation. Lots of analysts will be scrambling to recalculate company earnings, (hint...earnings revision will be upwards) as they envisage a drop in interest rates and cost of capital for companies. This, as most analysts will again tell you, should lead to a rally in the market.

After reading through the result of my introspection, you might wish that I never indulge in that activity again and prefer that I waste my time instead! For that you will have to wait till the England-India cricket series starts.