Sunday, November 22, 2009


Indian stock market update as of 22 November 2009

So what happens next in the Indian stock market ? There are different predictions about what the future holds for the Indian stock market, but the different predictions are more about the short term. There are different indicators on whether for the short term, the markets have climbed up to a bubble level, or whether there are indeed reasons for such a jump. It is predicted that part of the growth in the US (the so called green shoots) have been over-inflated, and that growth in the US right now is nebulous, with it being a jobless recovery.
For the middle and long term however, things are much more positive, with the overall global economy having seen an uptick, and both India and China looking much more positive. India seems to have overcome the worry of a failed monsoon, although it is likely to impact Government policies in terms of foodstocks and its food imports. So what are the stocks to be watched out ?
1. Mahindra Ugine Steel Company Ltd (good for the medium and long term, but needs patience)
2. Ashiaana Housing (if housing market is not a bubble, then very good for the long term)
3. JBF Industries
4. Shilpa Medical (risky, but can grow multiple fold)
5. Elecon Engineering
6. Central bank of India

Also, started to look at more technical information. What is the difference between Technical and Fundamental Analysis (very briefly) ?
Fundamental Analysis is the study of the fundamentals of the market. Fundamentals are all things that affect the supply and demand of the underlying commodity.
Technical Analysis, on the other hand, is the study of the market based on a chart of its price data, and assumes that you can do some amount of prediction of the price and volume movements based on past trends.

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