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Monday, September 22, 2008

US BailOut effect

The US  Financial Bailout was just like and injection given to the dying patient; the patient survives but if you are expecting the patient to get up and start running immediately, you are then just fooling your self. How do the fundamentals change within the Day? we have seen yesterday the market was confused it was moving up and down and up and down didn't knew where to go. As the effect of injection goes out after some time, i see the effect of Bailout injection also going out completely today.
I believe we should keep buying for long term only and in small small quantity. We should research and then buy the stocks which have more potential to grow in future rather than just buying the current Blue Chip companies.I feel investing in power companies which are going to get benefit from nuclear energy would be the good deals to buy now. I suggest NTPC,Rolta,GVK Power,BHEL among the some which would get benefit out of this deal.
I guess because of the good policies and actions of RBI regulation the PSU banks are having the least exposure to the bad mortgage debts and are least affected by the big falls seen in the market currently.So in coming day i think the PSU banking stocks will ride, but there is exposure in Private sector banks and bank like ICICI and other banks which have exposure will definitely see the effect of the US fall. On the Banking index technically i see the inverse head and shoulder in picture but unless the neck line is crossed it won't move up and it is good for pattern to complete because some times incomplete pattern are dangerous.

Get Ready for the Big Fall today, its time for all bears to celebrate.

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