vMarketS DailY - Oct 31

US Markets:

Dow 189.73 +2.11% 9,180.69
Nasdaq 41.31 +2.49% 1,698.52
S.&P. 500 24.00 +2.58% 954.09

Asia at 9 AM
Japan Nikkei 8,972.03 -57.73 -0.64%
Hong Kong Hang Seng 13,946.77 -383.08 -3.02%
China Shanghai 1,736.11 –1.56% –27.50

Crude Oil $64.57 –2.11% –$1.39
Gold $734.30 –0.57% –$4.20

News Today:

* US Economy shrinks by 0.3 in the 3rd qtr as per the pre GDP estimates.

* US consumer spending is at a 28 year low, jobless claims unchanged against last week.

* FED Provides another $21 billion dollars to AIG, total of $144 billion given to AIG so far. It seems AIG will be in need of more cash.

* Bank of Japan is expected to reduce key lending rate to 0.25%,Japan's September jobless rate falls to 4%

* China's central bank slashes one-year lending and deposit rates by 27 basis points third rate cut in 2 months.

* Indian Inflation eases to 10.68%.

6 Simple Tips to Survive in Stock Markets !!

1 . Learn the Basics

The first and fore most important thing, know what you are doing when you are working with your money in markets. Learn what are the necessary things that are needed to make you a decent trader.

2. You will not become rich over night.

Ya its very true, you wont make fortune in markets over night all the time. Have realistic expectations any thing above that is a reward. Take it with both hands.

3. Do your home work.

Take efforts to learn and analyze things by your selves, Over long time this experience will give you helping hands in your trades.

4. Experts are not right always.

Yes , markets is not a safe haven for anyone. Even the best of experts make mistakes.

5. Follow a Method

Have a disciplined trading method and stick to it in all markets. You will be rewarded.

6. Take one trade at a time.

Do your analysis and stick to one trade at a time. Keep it simple dont complicate your trades.

MarketS DailY - Oct 29

US Markets:

Dow 889.35 +10.88% 9,065.12
Nasdaq 143.57 +9.53% 1,649.47
S.&P. 500 91.59 +10.79 % 940.5




Asia at 9 AM

Japan Nikkei 8,108.90 +486.98 +6.39%
Hong Kong Hang Seng 13,231.09 +634.80 +5.04%
China Shanghai 1,793.89+1.25% +22.07


Crude Oil $64.70 +3.14% +$1.97
Gold $750.50 +1.35% +$10.00

News Today:

* DOW rallies 11%, 2nd biggest rally for dow .

* US consumer confidence falls to a record low of 38.

* Asian markets take cue from US and post rally with indices up 5% in japan and hong kong.

* FED will announce its interest rate decision, a 50 bps cut is widely expected.

* BOE warns of a possible banking system break down in a statement released yesterday.

* Bank of Japan is considering an interest rate cut.

2008 -- THE EMERGING MARKETS Best-performing markets
Venezuela's General index	-4.6%
Chile's IPSA index	-23.1%
Malaysia's KCLI index	-40.6%
Worst-performing markets
Russia's RTS index	-76.0%
China's Shanghai Composite	-67.3%
Argetina's MERVAL index	-60.9%

* as of Oct. 27

MarketS DailY - Oct 28

*********** HAPPY DIWALI TO ALL READERS **********

* Asia stages a big rally, Hang seng up 14% and nikkei up 6%

* DOW Futures point to +ve opening.

* Gold rallies to $750.

* Sensex YTD performance down 58%, FII have sold more than 50,000 cr in last one year.

MarketS DailY - Oct 27

US Markets:

Dow 312.30 -3.73% 8,378.95
Nasdaq 51.88 -3.23% 1,552.03
S.&P. 500 31.34 -3.45% 876.77

Asia at 9 AM

Japan Nikkei 7,693.03 +0.57% +43.95
Hong Kong Hang Seng 12,084.06 –4.23% –534.32
China Shanghai 1,773.13–3.61%–66.49

SGXNifty 2515 -12pts

Crude Oil $63.80–0.55%–$0.35
Gold $736.40+0.84%+$6.10

News Today:

* Asian Markets open on a weak note, Hang seng slips below 12000.

* Philippines markets halt trading as index slips -10%

* Bank of Korea orders largest reduction in its history, 0.75% to 4.25%

* Oil slips further to $63, OPEC hints it may cut production again if oil prices keeps falling.

* Japanese Yen is appreciating against Dollar at a fast pace, would lead to big unwind in carry trade. Also will put pressure on the Japanese Exporters.

* Governments may Intervene to stabilize markets in coming days, Joint effort along with IMF can be expected.

* FED is expected to slash rates in the policy review meet later this week.


***** WISHING ALL READERS A HAPPY DIWALI *******

What to expect from US Markets this week - Oct 25

1 . FED's 2 day meet which ends on wednesday, A 50 basis Point rate cut is expected.

2. US reports its 3rd qtr GDP growth which is expected to be weak.

3. As Many as 100 of the S&P 500 announce their results.

4. Last week of campaigning before US presidential election on Nov 4th.

Some Indicators.

US VIX ( Volatilty Index) Has hit an all time high of 80.

Weekly jobless claims shoots to 478,000.

OPEC cuts oil prodution by 1.5 million barrels.

US Markets Vs Emerging Markets

Performance of Emerging Markets Vs US Markets

Red line - US Markets.
Blue line - Emerging Markets Index


The credit crisis has hit the Emerging world more than the Developed world. All emerging markets have lost 40-60% of their market values this year. The BRIC ( Brazil, Russia, India, China) nations have taken the brunt head on. Brazil and Russian Markets are commodity based markets. The fall in commodity prices has crashed the stocks in these markets. With Russian RTS index falling 70% this year. Circuit Down is a regular event in Russian Markets now a days. Russia has been down graded by rating agency S&P.

India and china on the other side had their share of losses. These markets were darling's of FII in the past years. Those Troubled banks and hedge funds are dumping the stocks in order to survive themselves. China's growth has slipped to 9% this quarter slowest in 5 years. India's Growth expectations has been scaled down to 7% this year.

One respite in the recent times is the fall in Crude oil prices. India will breathe easy as high oil prices had hurt it the most. Oil is Down 40% this year.

It will be some time before we know if these markets can emerge stronger from the mess or If they will be hit hard.

Nifty Chart - OCT 25, 2008

A painful correction is happening in the world markets. A process of De-leveraging in credit Markets.

A Technical perspective of Nifty Below

RBI Credit policy Highlights - Oct 24

• Bank Rate, Repo Rate and Reverse Repo Rate kept unchanged.

• The flexibility to conduct overnight repo or longer term repo including the right to accept or reject tender(s) under the LAF, wholly or partially, is retained.

• CRR kept unchanged at 6.5 per cent.

• GDP growth forecast for 2008-09 revised to a range of 7.5-8.0 per cent.

• Keeping in view the supply management measures taken by the Government and the lagged demand response to the monetary policy measures taken by the Reserve Bank, it has been decided to maintain the earlier projection of inflation of 7.0 per cent by end-March 2009 for policy purposes.

• It will be the Reserve Bank’s endeavour to bring down inflation to a tolerable level of below 5 per cent at the earliest, while aiming for convergence with the global average inflation of around 3.0 per cent over the medium-term.

• It is necessary to moderate the rate of money supply to 17 per cent in 2008-09.

• Based on the above overall assessment of the macroeconomic situation, the stance of monetary policy for the rest of 2008-09 will be as follows:

* Ensure a monetary and interest rate environment that optimally balances the objectives of financial stability, price stability and well-anchored inflation expectations, and growth;

* Continue with the policy of active demand management of liquidity through appropriate use of all instruments including the CRR, open market operations (OMO), the MSS and the LAF to maintain orderly conditions in financial markets;

* In the context of the uncertain and unsettled global situation and its indirect impact on the domestic economy in general and the financial markets in particular, closely and continuously monitor the situation and respond swiftly and effectively to developments, employing both conventional and unconventional measures;

* Emphasise credit quality and credit delivery, in particular, for employment-intensive sectors, while pursuing financial inclusion.

How to Manage your Investments in Current Financial crisis ??

Few tips to investors to face the current difficult times in Markets..


1 . Divide Your capital and invest only 25-35% in direct equity Markets. Make sure this money is not needed in the short run.

2 . Look to invest in Gold, Deploy 10-15% of cash in buying gold. Over a long term Gold can be a good hedge against Equity markets.

3 . For people who are already invested in markets , look to rejig your portfolio. Reduce exposure in Junk stocks and non performers. Reallocate the cash into buying Quality Blue chip stocks.

4 . Never, Never borrow money to invest in stock Markets.

5. Dont jump and buy a stock in one go thinking its cheap, you might get it cheaper in a week or two. Do staggered investing. Split your investment for a 10-12 month time frame and accumulate stocks slowly.

6. One idea would be to invest in niftybees, its like buying a share but the underlying value will be nifty's value. Keep buying it in a SIP (systematic investmnt planning) Format.

7 . Do not try to guess a bottom in markets. Not many people have been successful in the past doing this. Let market announce the bottom.

8. Stocks that participated in the last bull run might not move up again. Research or take advise from a financial adviser to know stocks that could possibly perform well in coming years.

9. Stay calm and patient, its hard to demand this in current scenario. Patience could be the costly commodity. But this difficult phase will not last forever. It might continue for some more time. But at one point it will stop and things will get back to normal.

List of failed Banks in US in 2008

The Credit crisis has swallowed 16 US banks this year alone.


Bank Name --- Closing Date

Alpha Bank & Trust, Alpharetta, GA --- October 24, 2008
Meridian Bank, Eldred, IL--- October 10, 2008
Main Street Bank, Northville, MI --- October 10, 2008
Washington Mutual Bank, Henderson, ---September 25, 2008
Ameribank, Northfork, WV --- September 19, 2008
Silver State Bank, Henderson--- September 5, 2008
Integrity Bank, Alpharetta, --- GA August 29, 2008
The Columbian Bank and Trust, Topeka, KS --- August 22, 2008
First Priority Bank, Bradenton, FL--- August 1, 2008
First Heritage Bank, NA, Newport Beach, CA --- July 25, 2008
First National Bank of Nevada, Reno, NV --- July 25, 2008
IndyMac Bank, Pasadena, CA --- July 11, 2008
First Integrity Bank, NA, Staples, MN --- May 30, 2008
ANB Financial, NA, Bentonville, AR --- May 9, 2008
Hume Bank, Hume, MO --- March 7, 2008
Douglass National Bank, Kansas City, MO --- January 25, 2008

New Definitions For Stock Market

BULL MARKET -- A random market movement which makes an investor think that he is a financial genius.

BEAR MARKET -- A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry, Traders becomes investors and in the end sells off holdings in despair

VALUE INVESTING -- The art of buying low and selling lower.

P/E RATIO -- The percentage of investors wetting their pants as the market keeps crashing.

BROKER -- What my broker has made me.

CEO -- Chief Embezzlement Officer.

CFO -- Chief Fraud Officer.

STANDARD & POOR -- Your life in a nutshell.

STOCK ANALYST -- Idiot who just downgraded your stock.

STOCK SPLIT -- When your ex-wife and her lawyer split your assets equally between themselves.

FINANCIAL PLANNER -- A guy whose phone has been disconnected.

MARKET CORRECTION -- The day after you buy stocks.

CASH FLOW-- The movement your money makes as it disappears down the toilet.

INSTITUTIONAL INVESTOR -- investor who's now locked up in a nuthouse.

PROFIT -- An archaic word no longer in use.

MarketS DailY - Oct 24

US Markets:

Dow 172.04 +2.02% 8,691.25
Nasdaq 11.84 -0.73% 1,603.91
S.&P. 500 11.33 +1.26% 908.11

Asia at 9 AM

Japan Nikkei 7,880.46 -580.52 -6.86%
Hong Kong Hang Seng 13,150.97 -609.52 -4.27%
China Shanghai 1,862.76 –0.68% –12.80

SGX Nifty 2830 -129

Crude Oil $68.35+0.75%+$0.51
Gold $715.60+0.13%+$0.90

News Today:

* Asian Markets bleed on Early morning trade, nikkei slips below 8000, kospi slips below 1000.

* Indian rupee breaches past 50 to a record low against dollar.

* Software Giant Microsoft announces a better than expected numbers.

* US Seasonally adjusted jobless claims shoots to 478,000.

* Reliance posts good set of numbers, Tata motors announces 50% production cut clear signs that there is serious slow down in economy.

* Gold slips to $700.

* Inflation slips to 11.04% on the back of falling commodity prices.

MarketS DailY - Oct 23

US Markets:

Dow 514.45 -5.69% 8,519.21
Nasdaq 80.93-4.77% 1,615.75
S.&P. 500 58.27-6.10% 896.78


Asia at 9 AM

Japan Nikkei 8,198.65 -476.04 -5.49%
Hong Kong Hang Seng 13,552.96 -713.64 -4.74%
China Shanghai 1,845.91–2.63%–49.92

SGXNifty 2902 -155

Crude Oil $67.48+1.09% +$0.73
Gold $725.00 –1.39% –$10.20

News Today:

* Dow slumps 500 points, records 7th-worst point loss, Nasdaq at 5-year low as weak earnings, slumping oil prices heighten recession fears.

* New zealand Central bank reduces official cash rate by 1% to 6.5%, signals more cuts forthcoming.

* Crude oil slips to $67 on recession fears.

* Gold falls to 1 year low of $ 725

* RBI eases ECB norms to raise capital for business.

* FII are on a selling spree in Indian markets, they have been net sellers in last 2 weeks.

* Rupee falls to all time low of 49.45.

* Asia in bear grip in morning trade

Seoul 7.3%
Tokyo 5.5%
Hong Kong 4.4%
Singapore 4.3%
Sydney 4.2%
Taiwan 3.0%
Shanghai 2.8%

MarketS DailY - Oct 22

US Markets:

Dow 231.77 -2.50% 9,033.66
Nasdaq 73.35 -4.14% 1,696.68
S.&P. 500 30.35 -3.08% 955.05

Asia at 9 AM

Japan Nikkei 8,935.55 -370.70 -3.98%
Hong Kong Hang Seng 14,723.59 -317.58 -2.07%
China Shanghai 1,939.63–0.96%–18.90

SGXNifty 3175 -74

Crude Oil $70.55 –2.26% –$1.63
Gold $771.70 +0.48% +$3.70

News Today:

* DOW slumps more than 200 point on earnings concerns and slowing economy.

* Internet giant Yahoo profit slips by 60%, cuts workd force by 10%.

* Toyota's global sales slip for the first time in a decade amid the global slow down.

* The Federal Reserve said it would provide financing to shore up money-market mutual funds.

* Japanese markets fall by 4% as U.S. losses weigh on financials, stronger yen hurts exporters.

* Oil falls to $70 inspite of OPEC decision to cut production.

* Wipro net profit rises 9% QoQ.

* Inflation in Australia has climbed to 5 per cent, its highest level in more than a decade.

MarketS DailY - Oct 21

US Markets:

Dow 413.21+4.67% 9,265.43
Nasdaq 58.74 +3.43% 1,770.03
S.&P. 500 44.85 +4.77% 985.40

Asia at 9 AM

Japan Nikkei 9,239.65 +234.06 +2.60%
Hong Kong Hang Seng 15,372.59 +49.58 +0.32%
China Shanghai 1,976.52 +0.13% +2.52

SGXNifty 3202 +41

Crude Oil $75.37 +1.32% +$0.98
Gold $800.50 +1.33% +$10.50

News Today:

* US market rallies almost 5% as credit concerns ease.

* FED chairman Bernanke says US congress should look into another stimulus plan to boost the economy.

* RBI cuts repo rates by 1% in a move to ease liquidity.

* Indian PM assures nation that bank investments are safe and there is no reason to panic.

* Oil rallies back to $75 and gold to $800.

MarketS DailY - Oct 20

US Markets:

Dow 127.04-1.41% 8,852.22
Nasdaq 6.42 -0.37% 1,711.29
S.&P. 500 15.88 -0.62% 940.55

Asia at 9 AM

Japan Nikkei 8,739.89 +46.07 +0.53%
Hong Kong Hang Seng 14,999.58 +445.37 +3.06%

SGXNifty 3107 +55

Crude Oil $72.96+1.54%+$1.11
Gold $799.70+1.52%+$12.00

News Today:

* Chinas growth slows down to 9% in the third quarter.

* Netherlands is inject $13 Billion to the ING Group which became the latest victim of the financial crisis.

* OPEC cuts oil production in an effort to support the falling oil price.

* Pakistans economy is on the verge of default , likely to approach IMF for a bail out plan.

* Dollar-denominated Russian index RTS falls 6.5%, bringing its year to date loss to 71%.

MarketS DailY - Oct 17

US Markets:

Dow 401.35 +4.68% 8,979.26
Nasdaq 89.38 +5.49% 1,717.71
S.&P. 500 38.59 +4.25% 946.43

Asia at 9 AM

Japan Nikkei 8,589.56 +131.11 +1.55%
Hong Kong Hang Seng 14,991.70 -238.82 -1.49%
China Shanghai 1,917.58 +0.40% +7.64

SGXNifty 3300 +25

Crude Oil $72.50+3.79%+$2.65
Gold $810.70 +0.77% +$6.20

News Today:

* US markets gave a late session bounce recovering almost 800 points from days low.

* Oil slips below $70, only news to cheer in recent times.

* The U.S. consumer-price index was unchanged in September, Gives room for FED to cut rates further.

* Citigroup posted a $2.82 billion quarterly loss.

* Gold slips to one month low below $800.

* Hungarian government is to borrow up to 5 billion euros ($6.7 billion) from the European Central Bank to avoid becoming like Iceland which went bankrupt.

* India Inflation cools down to 11.44%, fall in crude prices helped the fall in inflation.

* Citigroup lowers FY09 and FY10 GDP estimates from 7.5% and 7.4% to 7.2% and 6.6% .

MarketS DailY - Oct 16

US Markets:

Dow : 733.08 -7.87% 8,577.91
Nasdaq : 150.68-8.47% 1,628.33
S.&P. 500 : 90.17 -9.03% 907.84






Asia at 9 AM

Japan Nikkei : 8,635.18 -912.29 -9.56%
Hong Kong Hang Seng : 14,895.19 -1,103.11 -6.90%
China Shanghai : 1,920.98–3.69%–73.69

SGXNifty 3112 -228

Crude Oil : $73.24–1.74%–$1.3
Gold : $843.50+0.54%+$4.50

News Today:

* DOW plunges 700 points on worries of prolonged recession.

* US Retail sales came at a 3 year low causing worries that slown down is getting evident.

* FED chairman Bernanke said policymakers now have 'tools' to fix financial crisis but that economy will take time to rebound.

* RBI cuts CRR by another 100 bps, this move will inject Rs 40,000 cr into the system. A total of 250 bps has been cut in last fortnight.

* Oil tumbles to a new 2008 low on worries that demand for oil is slowing down.

* Japanese Yen strengthens against Dollar.

* Jet airways lays off more than 800 employees in effort to reduce costs. Airline companies have demanded government for a bail out package to help them.

* It seems the slow down is slowly creeping into the emerging markets, to maintain profitability companies would start cutting jobs and reduce expenses.

MarketS DailY - Oct 15

US Markets:

Dow 76.62 -0.82% 9,310.99
Nasdaq 65.24 -3.54% 1,779.01
S.&P. 500 5.34 -0.53% 998.01

Asia at 9 AM

Japan Nikkei 9,309.54 -138.03 -1.46%
Hong Kong Hang Seng 16,371.92 -460.96 -2.83%
China Shanghai 1,986.55–1.53%–30.77


SGX Nifty 3417 -93

Crude Oil $78.15–0.61%–$0.48
Gold $846.80+0.87%+$7.30

News Today:

* US stocks not able to sustain gains despite of the $250 billion injection into the banks.

* Chip maker INTEL posted its results yesterday with a 12% rise earnings topping expectations. CEO warns slow down could affect future profits.

"The US economy appears to be in a recession as the financial market crisis bites" Janet Yellen, President of the Federal Reserve Bank of San Francisco.

* US Treasury secretary called on banks to “not take the new capital to hoard it, but to deploy it.”

* Indian MF investors redeem Rs 23k cr in Sept says Association of Mutual Funds in India (AMFI).

* Jet Airways lays off 850 flight attendants after deal with king fisher in order to cut down costs.

* Global Job cut counts as slow down hits jobs :

Daimler to cut 3,500 jobs
Nissan to cut 1,680 jobs
PepsiCo to cut 3,300 jobs
Britain to cut 10,000 jobs

MarketS DailY - Oct 14

US Markets:

Dow 936.42+11.08% 9,387.61
Nasdaq 194.74+11.81% 1,844.25
S.&P. 500 104.13+11.58% 1,003.35

Asia at 9 AM

Japan Nikkei 9,355.56+13.04%+1,079.13
Hong Kong Hang Seng 16,810.83+3.06%+498.67
China Shanghai 2,103.98+1.47%+30.42

SGXNifty 3712 +160

Crude Oil $83.19+2.46%+$2.00
Gold $849.00+0.77%+$6.50

News Today:

* DOW posts biggest single day point gain after steps taken by government calms investors.

* US governments will buy stakes in major banks and will infuse $250 billion into them. Under the plan following banks will get most of the cash.

Citigroup $25 billion
J.P. Morgan $25 billion
Bank of America $12.5 billion
Merrill Lynch $10 billion
Goldman Sachs $10 billion
Morgan Stanley $10 billion
State Street Bank $3 billion
Bank of New York $3 billion

* Australian govt announces an emergency $7.3 billion stimulus package.

* Kingfisher airlines and Jet airways announce deal.

MarketS DailY - Oct 13

US Markets:

Dow -128.00 -1.49% 8,451.19
Nasdaq +4.39 +0.27% 1,649.51
S.&P. 500 -10.70-1.18% 899.22

Asia at 9 AM

Japan Nikkei Markets closed on holiday
Hong Kong Hang Seng 14,836.86+0.27%+39.99
China Shanghai 1,954.57–2.30%–46.00

SGXNifty 3374 +70

Crude Oil $80.31+3.36%+$2.61
Gold $871.90+1.50%+$12.90

News Today:

* Major economies of the world are preparing their bail out packages , Germany is expected to give $135 billion of credit to support banks.

* Markets await the details of the package to make a decisive move.

* UK Government is likely to take major stakes in RBS, HBOS.

* Goldman sachs cuts its oil tgt to $50/ barrel.

* Rating agencies Moodys and S&P have reiterated their ratings on ICICI Bank, says bank is credit is healthy.