Aftermath of tsunami in financial world begins to flow out..those who lost MONEY IN STOCKMARKETS for any reason acuse these markets as being bad..... JUST.A SPECULATORS DEN........introspection if done in a fair way will reveal NTS UNGAURDED NAKED POSTIONAL EXPOSURES ( INVESTMENTS WITHOUT PROPER RISK MANAGEMENT PLANS IN PLACE AND UNLIMITED/ UNCALCULATED GREED AS THE MAJOR REASON OF LOSSES WITH MOST OF THE RETAIL PARTICIPENTS....GREED without understanding the risk factor in a market which have been climbing up since 2003.......till 21st jan,2008.
ENTRY AT HIGHER LEVEL OF THE BULL RUN ASKS FOR EXTRAORDINARY RISK MANAGEMENT PLANS IN PLACE EVEN BEFORE THE INVESTMENTS ARE INITIATED. SIMPLE COMMON SENSE ... HOW ITS POSSIBLE TO KEEP GOING NORTHWORDS ? SOME DAY IT WILL STOP MAKING WAY FOR BEARS

All that was not clear to us when first fall took place in Jan 2008 but as market moved ahead..... resistence at nifty 5000 approx and subsequent lower top lower bottom formation started indicating no upper side in near future with bleak hope though .... because the bottom was not breaking th lower support

we will have lot many International debates,conferences,arguments, counter aguments,accusations, partial confessions with justifying reasons blaming others for what happened in financial markets. US President Bush has initiated this series by inviting country heads of G-20 second week of Nov,2008 Lets see How that plans out in future.

What I suggest to stress is that all this is long drawn process until we reach just and fair causes determined ...that would follow the honest and sincere intentions to remove the balckholes of the financial system all over the world.

One thing is clear in this happening..... we in the fiancial markets agree is that all of us are interconnected ...... and seriously affected by policies ,regulations ,working of the financial markets by respective countries . The effects are function of the currency strength,politcal strength and economic compulsions etc.

We can go on and on giving our opinions / arguments......but as i have written in my previous blogs ....All this doesnt help indviduals much other than hope of better systems being put in place to avoid such happening in future.

I suggest my stockmarket friends to leave this to politicians & economist to study and efficiently execute the findings to improve investment world and make it more people friendly .
As fiancial Engineering Expert my job is to help people design best possible fiancial structure of their investments and wealth in fiancial / stockmarkets thats least affected by such situations protecting capital.........MINIMIZING RISK AND MAXIMIZING RETURNS...let us not wait for things to get better but understand the weaknesses and make provisions to safegaurd our Assets and profits.

When world powers will change the rules of the game, we will re-assess and change our investment/operating strategies.

I remmember the words of wisdom........THERE IS AN OPPOTUNITY HIDDEN IN ANY CALAMITY ......LETS TRY INDENTIFY THE OPPORTUNITY AND GET TO WORK .
THE PRICES RIGHT NOW IN INDIAN STOCKMARKETS ARE BEING DRIVEN BY MAJORLY FIANCIAL COMPULSION OF LIQUITY OF SOME BIG INVESTING COMMUNITY.... DRIVING CURRENT SENTIMENT DOWN TO WEAKER AND WEAKER HORIZONS. AND SENTIMENTS HAVE LOT TO DO WITH PERCEPTION RATHER THAN THE INTRINSIC FAIR VALUATIONS OF ANY ASSET .

LONG TERM INVESTORS CAN START CHERRY PICKING GOOD COS THOSE ARE VERY REASONABLY PRICED.....AND HOPE THINGS WD GET BETTER ONE DAY THOUGH NOT SOON ........AND HISTORY TELLS PEOPLE LOSE HOPES THEN MARKETS DO COME BACK LEAVIMG MOST OF US SO THINK...WHY I DIDNT INVEST AT THAT LEVEL

Also Investors can keep shifting their role 80 trader/10 short term investor /5 longterm investments and 5 wealth creating investments policy......means booking 80% investments as trading profits as markets oscillating due to increased volatility in current times ...this ratio can be diluted as the trend emerges, in the direction of the trend.

We have to remmember trend after such a drastic demolition of market strucure will take lots time to finally break in new terrotary upwords...there can be few false rallies decieving investors...after all bears are not going give up easily.

CURRENT MARKETS OUTLOOK Technical :Weakness in general persists.....Nifty must make a base and solid support above 3075--3200 band if it cant cross 3075 on the upper side it has probability of going still more lower . Next 2months are important to be observed by investors to take even a short term call. what best can be done in this scinario is to trade for 6-15 % out of the volality moves depending upon risk appetite.Strict stop losses are compulsary...... even when riding a winning trade trailing stop loss is a must.

MORE ANOTHER TIME

PLS CHECK IT YOURSELF BEFORE YOY BELIEVE IT

SAM