Tit -  bits

Photo: Angel Broking 

How are you all? Hope you are doing fine. The Covid - 19 catastrophe has brought wanton sufferings to the people world wide and it will take some time for the things to be back to normal once again. Remain safe and healthy.

Anyway, when I'm writing this report, the Asian bourses were trading mixed, while SGX Nifty was seen at 9,060.50, up marginally by 25 points. Since some time the Nifty has been trading in 8800/9300 ranges,  which somewhat gives us the  support and resistance of the trading pattern of the  Indices. The trends of the  for the short, medium and long term remain bearish. Only a close above 9590 can take Nifty near the intermittent high of 9889, however there is more tendency to break 9000 and test 8800/8700/8420 ranges.

Havijg said that I have taken a bullish view on Commodoties and the price action in 2008 and 2020 has lot of similarities.  Stimulus package,  unleashed worldwide is the commodities' best friend.

The groundwork over the past few months has set the stage for a massive rally in the commodities asset class over the coming years.

The demand side factor for raw materials around the globe is a function of the population. Each quarter,  the world adds another twenty million people to its fold.

At the turn of this century, around six billion people were inhabiting the mother earth.  More head counts around the globe require more raw materials each day.

Moreover, commodities prices are highly sensitive to inflationary pressures. The world’s central banks and governments have unleashed a spate of liquidity in response to the global pandemic.

While the kneejerk reaction to Coronavirus was the formation of a deflationary spiral that took most commodities prices lower, the whiplash impact over the coming years may be just show the opposite trend.

Therefore, buy shares of good companies which are basically into commodities like SAIL (Rs.27.30), Vedanta Ltd (Rs.89.10), etc. But don't rush to buy immediately -- buy during the market dips. The other commodity names, with their support, resistance and targets will be provided to those who are trading through my brokerage house or are subscribers to my Premiun Information Services.