|
The
positive sentiment prevailing on the bourses ahead of the
awaited budget turned sour after the presentation of the same.
A lacklustre budget presented by the Finance Minister did
not appease the markets as it fell 150 points intra-day after
the announcement of the Finance Bill. The reinstatement of
dividend tax at the shareholders end and taxing of mutual
funds dividend, along with 5 percent surcharge on individual
and corporate tax will affect market sentiment. The tensions
in Gujarat have also adversely affected sentiment in the markets.
The Finance Bill leaves much to be desired, since the fiscal
deficit cap has increased to 5.7 percent from 5.1 percent.
This again is going to create problems in the long term. Interest
rates were again reduced by 50 basis points, much below market
expectations and interest rates on deposits have been linked
to government bond yields.
|
Nasdaq
|
| While
the Indian software sector stocks bear the brunt of the
‘negativity’ emanating from the budget, a ray of hope
comes from the behaviour of the NASDAQ, which clearly
reflects a bottoming out after the long ‘bear grip’, indicating
the worst may be over. However, for indications of the
beginning of a fresh ‘bull move’ the NASDAQ will have
to penetrate the 1,804 level decisively and stay above
it for at least 12 trading days. |
|
<Click
on image for larger view>
|
The
finance minister could have done a lot more by introducing
second generation reforms. He has done a bit; but much more
could be done. While subsidies on petroleum goods were reduced
marginally, nothing was done for the retired whose livelihood
depends on small savings as the FM reduced the interest rates
by 50 basis points and also linked it to the yields of government
bonds. With a reduction in income, this class of people could
be in for some hard times.
Technically, the markets will take time to absorb or rather
discount the budget. As we had indicated in our previous articles
(11 and 18 February) the markets have touched the 3,700 levels.
The markets will continue to remain volatile for few trading
sessions till a clear-cut picture emerges from fine lines
of the budget. As we have been indicating, had investors and
traders sold Digital they would have profited from this deal
since the stock was down to Rs 529.70 on BSE on budget day.
The Digital counter continues to display weakness and traders
and speculators can continue to Buy the March Put option,
while investors can sell the same or stay away. As regards
other stocks, on the sector, no clear-cut trend has emerged,
and therefore no individual recommendations are being made.
Interpretation
of Stratstar Buy/Sell Report
Here’s
an explanation of each of the columns of the Stratstar Fund
Wizard Buy/Sell Report, in the order in which they appear.
Scrip: This column indicates the name of the company.
Date: This is the date on which the report was generated
for the company.
Price: This is the closing price of the scrip on the
day the report was generated.
Indicator: This is the current indicator which changes
to BUY or SELL as on the current date. The current indicator
column indicates a change in signal compared to the previous
signal. If this column is blank, then it indicates that there
has been no change in the signal and the previous signal holds
good and the investor/trader should hold on to his buy or
sell position. If there is a change in the signal then the
investor must square up his previous position and should take
a fresh new position in that scrip with the current signal
in mind.
Date: This column is the date on which the last signal
was generated.
Price: This column indicates the closing price of the
scrip on the day the last signal was generated.
Indicator: This indicates the previous signal which
may be BUY or SELL. The previous signal holds good till a
fresh signal is generated for the same scrip.
Open Position: This shows the Profit or Loss the investor
has made on ONE share after following the system.
Rise/Profit (%): This indicates the percentage profit
the investor has made from last signal to present day. This
will appear only if the scrip has appreciated by 10 percent
or more.
Stop Loss: The prices in this column indicate a level
at which the signal will change.
Remark: This column is a visual representation of the
percentage rise. Each ‘®’ represents a 10 percent
rise in a scrip. When the system gives signals on two consecutive
trading days for the same scrip, i.e. a BUY signal on one
day and SELL signal on the next trading day or vice-versa,
then the remark will be “WHIPSAW”. Whipsaw is a
bad
signal which always results in a loss, and occurs during sideways
trading market or when the markets display extreme volatility.
|
