Option reading index for today is 25.49 rise from last trading figure of (-) 1.14 suggests buying interest. Today's figure is abnormal as yesterday market action could have resulted in heavy options hedging strategies on both sides due to perceived political risk and its impact. Prolonged indecisiveness in an economy facing multiple challenges due to factors beyond its control is really very bad and may affect its budget estimates. Rising inflation, peaking interest rates, uncertain commodity prices, related currency valuation all put together may dampen the investment sentiments. In such a scenario, how the government is going to achieve projected growth rate with 4 + percent of fiscal deficit is really a mystery. The underlying assumption to this projection probably robust economy attracting capital flow, high disinvestment figure, high tax collection etc etc...but the base itself is getting shaky with inaction. Trade with caution.
1 comment:
thnx sri..
ths addition of fundamentals along with post s good..
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