Tit bits

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Hope you are safe at home or at workplace. I'm not able give too much time to blog because of my preoccupation with other fields.

Anyway, to begin with on last Friday, the BSE Sensex closed at 32,424.10 up 223.51 points (+0.69%) while Nifty finished the day at 9,580.30 up 90.20(+0.95%). 

But exuberance is only due to liquidity unleaded by various countries across the globe and has no connection with the ground realities of Indian economy.

The latest economic fugues show that the GDP growth has plunged to a 11-year low in FY2019-20 at 4.2%. This is way off the mark as far as budget estimates made in the February 1, 2020 and is likely to have severe implications on with government borrowing and interest rates. To make matter worse, the growth in the January-March 2020 quarter nosedived to 3.1%, the lowest since the GDP base year was revised to 2011-12.

This suggested that the economy had slowed significantly, well before Covid-19 hit us below the belt. My apprehensions came out to be true, as I have expressing my displeasure since the last 4/5 years regarding the way the current NDA government is functioning under Narendra Modi band Amit Shah -- the Jumla Brigade. 

My last call was only positive for the commodity sector, where some upmove did come during the last week, giving a decent return to those who invested in commodity based companies, like SAIL (Rs. 30.15), HINDALCO (Rs.138.85), Tata Steel (Rs.295.20), etc. 

But the irony is that if GDP growth starts to travel south,  then one sector can't perform well in isolation. 

Therefore, I see a sharp correction in the markets today or tomorrow, even though some of world economies are in relaxation mode, for Covid - 19 Lockdown. 

As a result of fundamental issues the Nifty is likely to face strong resistance at 9670 and is expected to touch 9300 on the downside. The traders can play in this zone keeping a SL at 9750 coresponding to Nifty spot.

#Meanwhile my recommended SKM Egg products (Rs.35), did show some upward movement, as more and more restuarnts, hotels and motels opens up, spiking up the demand for eggs. Stay put,  with a SL at Rs.31.

#Another, scrip where you invest is Granules India Ltd (Rs.171), at around Rs.161/162, post correction or in intra day dips. I have mentioned the details in my Facebook post.

#The gold prices in India remained range bound during May, however the outlook is positive as more and more Coronavirus cases comes up. Meanwhile, Comex gold gained 3.4% to settle at $1,751.7 an ounce by the end of May.

#There is a disturbing news that the lenders of Reliance Naval and Engineering (Rs.1.05) has asked for EoI to sell the compamy. ADA Group is bankrupt and hence it would be prudent to exit out of all stock positions.