Date: Jan 17 2016
Life is 10% what happens to you and 90% how you react to it - Charles R. Swindoll
Performance of market on 3rd quarter is mute except little noise in the upside and downside. But 2016 will be hard to us due to many global events like crude oil and Chinese uncertainty can bring catastrophic effect to the Indian market plus global as well. We haven’t seen any measure taken from OPEC to contain the oil price and the recent inventory details from Germany and US has confirmed the supply of crude oil is increased. Pressure on corporate to run the business is high where as realization is very less or none. Indian government had taken appropriate measures to cut the CESS for oil companies to see realization. This helps energy stocks to fall further though crude oil price is in steep correction. We believe the market continue to perform weak and reversal on market will be kick started by end 1st quarter 2016. Though the sign of “Market Crash” is high but it can be easily contained by taking appropriate measures on oil supply and demand. We anticipate this will definitely happen in near future due to huge pressure on from body corporate to countries and that will fall on OPEC finally to take action at any cost. This will happen in a course of 3 months time frame from now to reach conclusion. Bank sectors are getting weak due to NPA and weaken rupee. Many repo rate cut from RBI decrease the return on interest to bank from customers.
Life is 10% what happens to you and 90% how you react to it - Charles R. Swindoll
Performance of market on 3rd quarter is mute except little noise in the upside and downside. But 2016 will be hard to us due to many global events like crude oil and Chinese uncertainty can bring catastrophic effect to the Indian market plus global as well. We haven’t seen any measure taken from OPEC to contain the oil price and the recent inventory details from Germany and US has confirmed the supply of crude oil is increased. Pressure on corporate to run the business is high where as realization is very less or none. Indian government had taken appropriate measures to cut the CESS for oil companies to see realization. This helps energy stocks to fall further though crude oil price is in steep correction. We believe the market continue to perform weak and reversal on market will be kick started by end 1st quarter 2016. Though the sign of “Market Crash” is high but it can be easily contained by taking appropriate measures on oil supply and demand. We anticipate this will definitely happen in near future due to huge pressure on from body corporate to countries and that will fall on OPEC finally to take action at any cost. This will happen in a course of 3 months time frame from now to reach conclusion. Bank sectors are getting weak due to NPA and weaken rupee. Many repo rate cut from RBI decrease the return on interest to bank from customers.
Current Quarter – Q4
– Jan, Feb and Mar:
We anticipate the upcoming quarter to be hard due to
economic turbulence. We are seeing new
lower levels in NIFTY provided if oil price correction is not fixed. As new
initiatives will be kicked on we can see progress on IT, Media and infra (after
budget). FMCG will continue to perform in the same manner will 10 to 15%
growth. Energy stocks are good to
accumulate now in the long horizon of 2 years plan.
Q3 Quarter
Overview (3rd qtr 2015):
·
Q3 2015 was roller coaster performance from
market and closed flat at the end of December 2015 but confirmed
"2016" will be hard for us.
·
AMFI
Recognized "Power Bull" as an Independent Mutual Fund Advisory
·
Opening
“Retail Office” in Medavakkam, Chennai by end of Jan 2016.
·
Expecting Big crash on market provided oil price
is not fixed from OPEC or supply reduced to contain price decline.
·
FII investments are continuously melting due to
weaken rupee and uncertainty in market
·
Bank sector loosing strength due to increase in
NPA and weaken rupee
·
Power Bull reduced call quantity due to uncertainty
in the market and more volatile in the points gain
·
Banks and Pharma sectors are hammered due to
weaken and cyclical issue
·
Remaining sectors also corrected most in the
time sequence and totally avoided high beta stocks
·
Totally given 32 calls in cash market Q3 which
one of the lowest in Power Bull history due to uncertainty
