According Gold to Crude Oil Ratio Further downside expected , Best 10 Value Investment Stocks to Buy

According Gold to Crude Oil Ratio Further downside expected , Best 10 Value Investment Stocks to Buy

What is gold to crude oil ratio? It simply means that how many barrels of oil can be bought in one ounce of gold at any time. What this ratio infers is that when the current ratio is below 15.4, gold is either too cheap or oil is too expensive. When ratio is above 15.4, oil is too cheap or gold is too expensive   How to use gold to oil ratio Every time gold /oil ratio finds a new top, crude oil changes the trend from positive to negative. Every time gold/oil ratio finds a new bottom crude oil chances the trend from negative to positive.   Effect on Indian market or Indian economy  Gold/oil ratio always tries to move towards 15.4 after a high or after a bottom so to maintain the ratio either oil prices will have to move upside or gold prices will have to move downside.   Relation between nifty and ratio A scan of 22 year of data shows that nifty has a low degree of correlation (0.27) with the gold to oil ratio. But look a little closer say, at times where oil has been costly (above USD 90 a barrel) and gold has been cheep (USD 60) and gold moderate, the correlation is more than  -0.5,which is considered moderate to strong. Through 2008 when market was roiled by the financial crisis, the ratio rose with the correlation, a strong -0.6. in other words, the data suggest that in periods where certain conditions obtains, if the gold to oil ratio falls, there is strong chance that share prices will increase.   Current...
Sublime’s Technical View On Market For – (27/06/2017)

Sublime’s Technical View On Market For – (27/06/2017)

Market is above the 30 day moving average on daily chart so it shows that market is not in a bearish trend yet and it is just profit booking by retailers. Relative Data as following: RSI= 51.03 (1D chart) with a long bearish candle. RSI= 34.78(1 H Chart) with a bullish engulfing pattern at 12.15 pm and after that a doji and closing also with doji. Today’s Nifty Closing Price: 9573.80 support level =9512 Resistance level =9757 Market is corrected to take a jump as seen in july expiry and which can be  clearly seen in FII data. Today’s FII/DII Activities: FII Trading Activity: 269.95(Buying) DII Trading Activity: -45.78(Selling) Note – Market is showing same behavior as we have seen in last expiry so what is going on market is simply profit booking and FII’s are very bullish on indian market so every dip in market is a good opportunity to take an entry because we all know fundamentals are very strong for indian market and indian economy as today again indian government choosen 30 more cities to develop them as smart cities which is a good sign for more foreign investment by more projects that can generate more jobs and by this india can make more taxpayers and yeah GST is a major tax reform for indian taxation system. so be ready for the next bull run(upto atleast 9850) by the end of this...
Sublime’s Technical View On Market For tomorrow(22/06/2017)

Sublime’s Technical View On Market For tomorrow(22/06/2017)

Sublime’s Technical View On Market For tomorrow(22/06/2017) Tomorrow market is in Uptrend as nifty is closed above both the short term moving average (15 days and 30 days) and in daily chart a hammered type formation is there which is a trend reversal pattern Relative Data as following: RSI= 59.14(1D chart) with a hammer type pattern formation. RSI= 52.67(1 H Chart) with a bullish engulfing pattern at 11.15 am and after that market is in uptrend. Today’s Nifty Closing Price: 9633.60 support level =9620 Resistance level =9670 if market will cross its resistance level then it is ready to touch new all time high Today’s FII/DII Activities: FII Trading Activity: -153(Selling) DII Trading Activity: -41(Selling) Note – Today asian markets traded down because of  dip in oil prices and a negative sentiments in global market. After 11.15 am indian market recovers and leaves positive node for next day. Market will touch new high in this month because of GST implementation by next month and market is corrected enough also to take a...
Is it the right time to invest?

Is it the right time to invest?

The Indian stock market after hitting historic highs has begun to show signs of uneasiness as valuations have run up and earnings recovery yet to catch up to markets up move. The move to implement GST from July 1,2017 though laudable will bring in its own set of problems initially. The consumption sector is probably the worst hit in the run-up to the Goods and Services Tax (GST). Inventory reduction has had an apparent snowballing effect throughout the supply chain. While FMCG companies tried to push inventory in the month of June through various incentives, the distribution chain is grappling with weak GST preparation, lack of awareness and the fear of having to bear the brunt of adverse tax disparity after July 1. The consumer durables sector is similarly facing uncertainty on the inventory management side. Meanwhile the Indian economy has been growing at 7%+ and this trend is likely to continue in the near term. With no growth in Europe and US and slow down in China the Indian markets are in a sweet spot. The growth in GDP will make sure that there wont be much fall in the Indian indices. There is so much of money coming into the equity market through FII’s and mutual funds and limited growth opportunity elsewhere there is unlikely to be any major correction.   The question that people are asking is “ Is it the right time to enter the market. In our previous newsletter in April we had written “ We had been maintaining our stand that though Indian stock market is expensive we continue to maintain our stand...
Are you ready to take advantage of the market fall to strike rich?

Are you ready to take advantage of the market fall to strike rich?

The Sensex and the Nifty opened sharply lower today due to a combination of factors i.e the government decision to withdraw Rs 1,000 and Rs 500 notes and increasing probability of Donald Trump winning the US Presidential election  spooked investors who feared a tough and uncertain time again for the economy and the market.   The Sensex was down over 1,500 points (5.5%) at open while Nifty was down 505 points (6%).All the 30 stocks were down in the dumps as panic spread the markets on a totally surprise moves by the government on the currency issue and lead established by US presidential candidate Donald Trump over favourite Hillary Clinton. Though the gap has closed down at the time of writing this article Donald trump has won 232 seats vs 209 seats for Hillary Clinton.   So what should investors do when the market falls? Run away from the markets?. No it is actually time to accumulate quality stocks and smile all the way to the bank. While these are inherent negatives for the market the real reason for the market correcting is one word “Valuations”. When valuations go overboard the markets tend to react negatively and these negatives form the reason for the correction.   We had clearly written last time that the markets may correct given the steep valuations and a correction is due and had asked our clients to book 50% profits and increase your cash levels. Today we had proved that our assumption is turning true. We would like to recall few of our last write up on the markets below. We had written” Coming to the question of...
Our safe long picks recommendation has returned 100% returns in 8 months(Our returns- 8 months-100% returns)

Our safe long picks recommendation has returned 100% returns in 8 months(Our returns- 8 months-100% returns)

On 14-02-2016 in our safe long term report we had recommended 12 stocks when the stock market was falling and there was panic in the market. We had recommended the stock as the street got nervous which provided a good entry point. The nervousness was exaggerated and we could sense people selling in panic. But we were not perturbed as we knew that the street is over reacting. We decided to go out and give a list of 12 recommendations. One of our recommendations was MOIL which we had recommended at Rs.185/- and today it is trading at Rs.380/- giving 100% returns in about 8 months time.We were determined to give recommendation which would be less risky at the same time generate good returns for our investors. Our belief has paid off and today our recommendations have given an average of 53.60% returns in 8 months withour stock MOIL delivering 100%stock. Remember the age old adage in Stock Markets” Buy when everyone is Buying and Sell when everyone is selling”. This has worked well for us and our investors are getting ready to laugh all the way to the bank.   Please find the list of stocks and their performance below.   There are two ways in which one can manage a Portfolio which is Active and Passive Style. A Passive sytle of investment is generally long term while an active style of investment involves active churning of portfolio to make returns. An active style of investing requires skill and fast decision making skills which would enable an investor to make quick bucks from trading. But the problem is...