hi all

hi all
THE STOCK MKTS BSE / NSE HAVE FINALLY CRASHED
i have been an on n off investor in the markets so the name MUMBAIBULL
i have been studying mkts since college days when i was a sub broker for ipos . i have seen the big ketan crashs of 2000 and studied the harshad crash.
the markets have risen continuously for the last year form 6000 to 9000 from then on whithout any substantial correction till 11000, thanks to the massive buying by the american pension funds and the great japanese, n the satta bazaaar.it was expected that the mkts wd fall after noises from mobius, faber, morgan stanely and other bigwigs that it is overvalued , anyways they always say it is time to
sell when the japanese come in. plus there was the constant rate raising by the fed and the weakness in the dollar and the supper overvalued commodities and oil to contend with.
the markets starting becoming volatile last week and something big was expected.
i had been expecting a fall of maybe a 1000-1500 points and i therefore didnt bother to liquidate my holdings. the elections were a big negative where the commis have come back with a big majority thanks to the indian deng jiao-peng buddhadeb dasgupto.
the last nail was hit by the great juggler finmin p chidambaram and cbdt who scared the shit of all n sundry via a cbdt circular to placate the commis and garner more funds for the hellhole of govt programs especially the Cong.and Commi workers minimum wage guarantee program meant really for the bpl card holders (in bihar even big politicians n policeofficers have thosethanks to laloo).They cant get anythig out of the fiis, until the shut the tax free mauritius channel of fund flow, which they wont cause god and sucheta dalal know how much benami fiis(registered in canaries) of the industrialists and politicians trade via this route . the bakra as always is the common indian investor aam janata as sonia gandi says .the circular gives a free run to ur local babu that is ur income tax officer or ITO to decide that any square off trades made by brokers and small time players r to be taxed at 10% STCG or as business income 30% tax these guys have still targets to acheive in mumbai and will most certainly go for 30%.
i didnt in my dreams expect the mkt to be so overstretched and have been literally blown away by the steep fall and massive unwinding..the mkts were at circuits at 12pm.my expectation is the market will settle between bse 9500 to 8900, worse they can goto bse 8500.
i think this is a repeat of the old crash when there was a total tech meltdown meltdown and infosys had fallen fron 10500 to 8500 , and later till 2500 .
now the situation is being repeated in infrastructure, commodity play and engineering sector where an earstwhile hind construction has climbed from rs85 to rs 1550+ in six months (split adjusted) same with stuff like acc, lnt abb etc.

the big fis aka lic/ uti etc have now been instructed by the fin ministry to start buying now...the market is recovering and the fall today is now down to 4%.
i say never trust the regulators and finmin as he is a professional hi court lawyer (l**r)
the chaos is not over so be sure to buy only when u r comfortable and sell if u r still in profits and are holding short term. as i think the selling by the fiis and hedge funds and panicky small investors is not yet over.
u can do a sdi(systematic daily inv) if ur sitting on cash, but dont put more than 5% of ur pfolio in one stock in one day , but only buy good stocks , pref blue chips...