What the Wolf Of Wall Street has to say on Indian Economy

Views of Jordan Belfort

Market is current on bumpy ride where we are seeing one day market is going up and second day market corrects. This is a very negative sign as market is highly volatile and is making new low at each trading session. Last week we had made a low of 7850 and this week we made a low of 7650. Now the whole street is taking of 7500 and 7200. But our conviction is clear that market has bottomed out and we don’t see any further pain on street. A 50-60 pts correction is possible but chances of markets getting back to 8000 levels are high. Currently global concern is resulting in shrinking on market and in compare of Global scenario Indian fundamentals are far better so every fall is a buy and this is the right time to buy. Valuations are quite cheap and long term bet is surely on India. Banking stock has been heavily hit in last 15 trading session. Bank nifty has corrected from 19000 to 16500. PSU Bank like SBI, OBC, BOI, Corporation Bank are all trading at 52 and 72 week lows. Most of the banking stocks are available at 2013 lows so we advise to buy these stocks as rebound in PSU banks is definitely around the corner. Most of the PSU bank are available at P/BV of 0.32 and lower which is surely a buying opportunity. We are once again advising you that currently the whole street is in a mood to sell and this is the best opportunity to buy as the same people will come back to buy at 8000 and 8100 levels. So don’t miss the chance. We, at CNI, are bulls on street. Currently market has been surrounded by full negativity.

No one is ready to buy. We are talking with many retailers, brokers, investors and all are afraid to invest as all have one opinion in common that nifty will touch 7000 levels. Media, Analyst, Foreign brokers all are talking negative and are bearish on stocks. Poor monsoon, failed parliament session, Bihar election and earning of companies is in the mind of the people. We believe Indian economy is in a far better state than 2013. We have strong foreign reserves to protect downside risk of our currency. Crude price is another boon for the economy. Coming to reformative action Govt. action will fail till 2016 as Rajya-Sabha fails majority and will gain majority only in 2016. So we should give the new Govt some time and wait for results. Bihar election is a strong trigger and we estimate NDA Govt. will gain majority.

-- CA Kasliwal Ambar