'Sensex levels above 5100 are not sustainable over next 4-6 weeks'
Maulik G Sharedalal thinks that in spite of the Sensex rising 259 points on April 26, 2000, levels above 5100 are not sustainable over the next four-six weeks. In fact, he says that there could be a reasonable chance of testing the 4284 level made on April 25, 2000.
Mr Maulik G Sharedalal (Wed Apr 26 19100 6:14 IST)
Hi everybody. Thanks for joining in. Let's start.
vinay (Wed Apr 26 19100 5:41 IST)
sir, has the sebi relaxed the circuit filter norms? the meeting was supposed to be today.
Mr Maulik G Sharedalal (Wed Apr 26 19100 6:17 IST)
Hi Vinay. SEBI has relaxed circuit filters today. there will be a 30 minute cooling off period after which the filter will be relaxed by a further 4%.
kp (Wed Apr 26 19100 5:51 IST)
Is it necesary to have circuit filters and is rolling settlement successful in India? Why is SEBI so impertinent to investors' concern about rolling settlement.
Mr Maulik G Sharedalal (Wed Apr 26 19100 6:20 IST)
Hi KP. I think our market is possibly not yet ready for complete freedom in price determination. Reasonable circuit filters do have the benefit of protecting the system's integrity. However, as capital adequacy norms, margin collections and rolling settlements become more comprehensive, we should eventually graduate to becoming a market without filters.
prakash (Wed Apr 26 19100 6:8 IST)
WHAT DO YOU THINK ABOUT HAVING 15 MINUTE GAPS AFTER EVERY 2 % RISE IN STOCKS INSTEAD OF CIRCUITS? THIS I THINK WILL BE MORE EFFECTIVE IN THIS SPECULATIVE PARADISE???
Mr Maulik G Sharedalal (Wed Apr 26 19100 6:22 IST)
Hi Prakash. I guess one could keep finetuning the percentages and the cooling off periods but this has the danger of micromanaging markets which would not be desirable. I therefore think 8% plus 4% seems fair.
Rajkotia (Wed Apr 26 19100 6:18 IST)
Hi Maulik, does US data have any effect on the Indian markets? eg the consumer confidence index that was announced yesterday, what was its impact?
Mr Maulik G Sharedalal (Wed Apr 26 19100 6:27 IST)
Hi Rajkotia. The US consumer confidence index may not have much of a bearing on our market - indeed, I don't think it significantly affected the US markets either. However, I do believe that US first quarter GDP numbers and US employment cost data due tomorrow would have a material bearing on the US markets and on investors' perceptions towards sustainable returns from equities in a rising interest rate scenario in the US.
prakash (Wed Apr 26 19100 6:13 IST)
has the bear market ended ? what if alan greenspan hikes fed rates by 50 basis point or more next month.. thus effecting the ice stocks over here?
Mr Maulik G Sharedalal (Wed Apr 26 19100 6:33 IST)
Hi Prakash, whether Mr Greenspan hikes rates by 50 basis points or not, I currently think we are in an intermediate bear phase. Notwithstanding a good day today, I don't think Sensex levels above 5100 are sustainable in the near term (over four-six weeks). There exists a reasonable chance that we may yet again test the 4284 level made yesterday.
RAHUL (Wed Apr 26 19100 6:6 IST)
US-based Janus Capital takes 5.64% stake in RIL -- WHEN SHOULD I BOOK PROFIT?? OR SHOULD I WAIT FOR MAY 2 -- WHEN THE 12% CIRCUIT FILTERS WILL BE APPLICABLE?
Mr Maulik G Sharedalal (Wed Apr 26 19100 6:38 IST)
Hi Rahul. Janus is indeed a highly regarded FII. But I think you should review your position at Rs 380 levels. If it is a trading call, it might be a good idea to book profits around those levels.
prakash (Wed Apr 26 19100 6:41 IST)
will infy ever touch 10,000 in the intermediate rally??
Mr Maulik G Sharedalal (Wed Apr 26 19100 6:43 IST)
Hi Prakash, Given our slightly bearish view on the market in general, I think Infosys might find it difficult to sustain levels above Rs 9100 over the next month or two.
abhi (Wed Apr 26 19100 5:49 IST)
what do u think of Wipro, HLL and Dr. Reddy's results that were declared today and how will the market react to their earnings tomorrow?
Mr Maulik G Sharedalal (Wed Apr 26 19100 6:47 IST)
Hi Abhi, I think all three - Wipro, HLL and Dr Reddy - results fall a bit short of expectations. These stocks could react negatively tomorrow.
Mr Maulik G Sharedalal (Wed Apr 26 19100 6:52 IST)
Last two questions guys.
RAHUL (Wed Apr 26 19100 6:53 IST)
HOT BUY-----KESORAM
Mr Maulik G Sharedalal (Wed Apr 26 19100 6:54 IST)
Hi Rahul. Why is Kesoram hot?
RAHUL (Wed Apr 26 19100 6:56 IST)
IT WAS IN UP CIRCUIT TODAY!!! FROM 30--20 CHEAP"A" GROUP STOCK
Mr Maulik G Sharedalal (Wed Apr 26 19100 7:1 IST)
Thanks guys, nice chatting with you. Bye.
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