Winning Strokes

Yesterday's market sell off was brutal especially among the small and mid cap space. It seemed this happened due to triggering of the margin calls. Anyway, the things are expected to get calm within a short time as the US inflation data suggests that probably the worst is over. Photo: Motilal Oswal Securities Ltd

The US Labour Department report showed that the CPI rose 0.3% (against expected 0.2%) from the prior month and 8.3% from a year ago, easing from March's 8.5% inflation rate. The core CPI, which strips out volatile food and energy categories, rose 0.6% from March. The annual core inflation rate fell to 6.2% from the prior month's 6.5% reading, which was the highest since August 1982. 

Right now, the market is indicating that inflation is expected to average 2.86% a year for the next 10 years, according to data from the St. Louis Fed on the so-called 10-year Treasury note break-even rate. That might sound low, given that the consumer price index rose at an annual rate of 8.5% in March.

This reinforces the belief that the US Fed in all likelihood is likely to go slow on the monetary tightening measures in the near future.

#Today the shares of Canara Bank Ltd (Rs.202.20) touched a low of Rs.193.85 and a high of Rs.203.70, before settling with a gain of 1.25% from the previous day's closing price. The EOD candle stick chart is showing some trends of reversal pattern. Accumulate!

#The RBL Bank Ltd, one of the finest private sector banks, fell sharply to Rs.104.70 (New 52 - week low), ahead of the Q4FY22 results. The quarterly results are likely to be inline with expectations. Use dips to accumulate!!

#I have a festive offer: Those who have a portfolio size of Rs.50,000 (Fifty thousand only) can join my associate brokerage house and get my Premium Information Service and Guidance FREE. This offer is valid till Deepawali.

#The stock of Wockhardt Ltd corrected to Rs.229.20 (new 52 - week low) during the intraday trade. However, the stock recovered at the end of the day and closed at Rs.237 in the NSE. Accumulate!!

#I am expecting that it will take some time for the Indian bourses to stabilize, due to twin headwinds: Russia - Ukraine war and the threats of inflation. But those who have spare cash should accumulate the shares of good companies at reasonable prices.

You need to have patience apart from skills for making money from the Equity Market. Coming and thinking to become billionaire within days, doesn't happen in stock market.