Posted by: Babu Suresh | January 27, 2009

27th Jan. 09 – NSE Trading Session

Nifty Fut. Tick Chart Nifty_Fut_270109

Notwithstanding the fact that today’s session experienced good amount of volatility with comparatively low volume in key counters, including Nifty Futures Jan09, considerable portion of shorts seem to have been covered. The worrying part of Nifty spot to Futures discount has also substantially come down in today’s session.

With RBI remaining firm in its stance with regard to Key Interest rates, for they know more things than normal traders and analysts like us, I am sure large traders will enjoy this market in every possible manner.

Nifty Fut.3M ChartNifty_Fut_3M_270109 

Today I was asked by some friends of mine about investing in banking sector for mid term since they came out with good figures this quarter, I conveyed my reservations pointing out few known factors:

  • Undoubtedly our banking sector proved more organized and resilient when compared to their peers across the globe
  • The current results reflected major portion of their income derived from Treasury activities and other incomes
  • Absence of any genuine lending and income thereof due to high interest rates as well as dampened growth in key sectors
  • Increase in Non-Performing Assets and etc.

Therefore, my advise to them was to hold on until final results announced due in Apr.09 which has a potential to give us proper direction.

SBIN (Cash) Tick ChartSBIN_Cash_270109

 

 

SBIN (Cash) 3M ChartSBIN_Cash_3M_270109

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