Why we are Bullish On Equities!!!

"GOLD", when this word is heard anywhere around india, the speaker gets attention of all the ears around him. Gold is consider to be one of the preferred investment of savings in India. Gold Jewellery is highest consumed in India. Whenever i ask my elders what to of the savings, they would reply "Buy Gold". I am sure many of my friends and colleagues would be facing that. Arent we creating some bubble in gold?? On the charts i was bearish and i am bearish on Gold since it hit 34000+ in last January and i did even post it on this blog. Second thing to gold is "Real Estate". Last ten years inflation in India was majorily due to real estate prices. People became rich unexpectedly faster due to doubling and tripling of Land price in even less than a year of buying the property. A survey by a renowned agency said that saving in financial market droped from 8% from 2008 to just 2% in 2013 of total saving i.e., rest of saving is in either gold and Real estate. Buhh!!! arent we smelling a bubble in real estate??? It my view that when more than 80% of public is bullish in any asset of investment than we can expect a big move in prices on either side. Since we have seen a continuous upside in real estate segment, we can be bias on downside of the prices. On other side Gold is treated as a just a mere investment option in US. I just came across of the article of Ex. member of FED Mr. Randall S Kroszner who stated to our indian Journalist that they wont give more weightage to Gold at this level as their economy is recovering but yet not inflating. Gold is just the hedge against inflation for them. So we can make out that Gold demand in global market will decline so is the case India. On other side Equity has very less portion of ones saving in India, which gives huge opportunities on upside in the Equity. Technically, Gold has strong resistance at 28000/30350 where current rally could hault. Therefore, looking at inter asset analysis, Equity is the underperformer and  we are bullish on it for LONG TERM 

#202 Nifty Update: Off-Road driving by Nifty

Nifty was driving high speed on the road and it has just slipped off the road today. As you all can notice in the chart Nifty has just breached a strong upside channel today and closed above that level. It had been facing strong resistance at this line for last five times but on the 6th time it just hit a 6 out of the boundary completely. Our third tgt 6211 has been achieved on our long call on Nifty re-initiated at 4th February. We have seen some re-initiating buying interest by FII in indian stocks. High delivery positions have been witnessed in the fair valued stocks in Index as well as in the mid-cap sector. Economy around the world has been showing some signs of improvement starting with the Euro zone. Portugal has seen 1.6% growth and Moody might give it a stable rating from Negative stable. UK has given some growth at 0.5% which is better than nothing. Still Japan is in deflation mode and it is trying turn themselve. Can Abenomics save them? April will say!!! Indonesia is the economy to watch in this next cycle. People say that it can outperform emerging markets in terms of Growth rate from this point. Coming back to Nifty technical it has just taken strong support on 50 Daily SMA and for the 2cd consecutive day it has closed above 100 daily SMA situated at 6163. If Tomorrow it closes about the same level than it gives confirmation for the bulls. Nifty has seen some increasing trend in the volumes in last three session. Expiry being tomorrow, its gonna be a high volatile session.

Our Strategy: We are intact with the Hold on Long with final tgt 6263 and a Extended risky tgt of 6310 . Trailing SL comes down to 6100