[ad_1]
Stock Market Update: After raising interest rates by the Fed Reserve to 3.25 percent, it is believed that 115 basis points Fed can increase interest rates. This is being done to control inflation. But inflation cannot be reduced only through monetary policy. The Fed is aiming for 2 percent inflation by 2025. This statement is enough to say that there is no recession in America. Because if there was a recession, the inflation rate would have come down to the level of 2 percent immediately, we would not have to wait till 2025. You have to learn to live with inflation and the talk of recession is being talked about to take advantage of the opportunity.
Had the Fed not done so, the Nifty would have been at 21,000 after foreign portfolio investors invested Rs 90,000 crore. The truth is that even the Fed Reserve is not talking about recession. Economists must also agree that raising interest rates is not the right way to check inflation. Cash has the biggest impact. Commodity is the true hallmark of recession. If JSW, Tata Steel, Jindal and Adani expand or drop acquisitions, I will start worrying about slowdown. I have talked earlier about expansion in the steel sector. The second sector is cement. It is clear from Adani’s acquisition of Ambuja Cement and ACC and the desire to beat UltraTech that cement is the best sector.
America did not go below 30,000 and saw an increase of 15 percent. The Fed’s next meeting is in November and is expected to raise the interest rate by 75 basis points. After that 40 basis points can be increased further. If the inflation rate in America is less than 8 percent, then the Dow can go up to 35000.
Now we should talk about stocks. We should go with foreign portfolio investors. First they drop, then they lift. When they drop we should buy at lower levels. And when they are not there then we should buy stocks while staying ahead.
Due to the Internet, we feel that we all know where all the information is available. But this is how we fall into the trap. When the market was at 15,200. Brokers were talking about going to 14500 through the media. This is where we got stuck. From 15,200 we came to the level of 18,100. People ignored what I said then. But the people who followed the CNI team quietly made a lot of money in 3 months. Many stocks doubled.
Now we should focus on such stocks which the market has not accepted yet. These include GTV Engineering, Vipul Organics, RDB Rasayan, Metal Coating, Artifact, MK Exim, Integra Engineering, Alpine Housing, Sunil Agro Foods, Triveni Glass and Global Offshore. These stocks have low volumes and are going to be real wealth creators in the future. Most of them have some hidden triggers and the market will accept them when they have increased five times. We will focus on only those stocks which the market is currently ignoring.
Dow or Nifty both are oversold. We are far away from the new high of Nifty that we Diwali can see before. The next meeting of the Fed is in November and if inflation comes down, the Dow can jump by 15 percent. There is nothing wrong in expecting the Nifty to go up to 18,600.
There is a need to show wisdom. There is a need to invest in undervalued dynamic stocks. The market keeps going up and down. Whenever there is a huge fall in the market, one should invest in a good place.
(The author’s views are personal.)
Kishore P Ostwal
cmd
CNI Research Limited
[ad_2]
Source link