Dear members,

                Unexpectedly the USA bubble burst, it was a not a surprise as we believe first rule (Anything possible in stock market) but it was certainly surprise that politicians in USA allowed to occur such terrible problems. Usa is in recession and likely to continue several months, if the current bail out not a success coming time will be very terrible, can be like end of Usa. Going below 7400 is a strong sign. Then coming future will be emerging countries world, mainly India & China.

Present Nuclear deal is certainly with 123 act, we are expecting it will give some relief to USA.

Stock Market

We know how the pain witnessing, it is likely to go several years slow down in USA if politicians are reluctant to solve problems. We still recommends take stocks with good potential to grow, we had recommended stocks at January peak level still recommending certainly some are in loss some are in profit. Coming months shares will perform depending on actual valuations, certainly if funds are behind a company no doubt about good up trend, other wise even if good results comes no strong up trend can be seen. Present selling purely due to combined effects like fear, global recession, to meet loss occurred in other countries.

Do not forget most of leading companies like Infosys, Reliance, Praj Ind and lot of them grown in past & given very huge profit (If one had taken IPO 1000 shares of Infosys he will have currently over 1 crore profit) to investors so we recommend take stocks carefully & invest only in such stocks which can grow. There are lots of shares available at cheap level mainly in BSE, take such stocks and be patient. Do not hold stocks which have no potential to grow please remember that there are some people still sitting in gallery taken Himachal Futuristic taken at 1000 levels in year 2000, expecting it will come again. Also note that a well known company does not mean good growth in future.

Most of companies are in panic mode but our economy still in growing stage, we expect if we able to sustain good GDP in coming months should be above 5%, then FIIS will be back to our market, because money will be invested where growth happening. We are expecting some slow down will see, still growth compared other countries will be high.

Target 21000 is directly connected to how fast USA recovers, or how fast problems in USA settle. We are expecting up trend again once problems settle and if growth not goes below 5%.

Today's IIP data is scary lets see how present month going to perform.

Why our economy safe compared to other countries?

This time we have to thank LEFT parties, because they were against all reforms which helped safety at least in fundamentals. In last 3 years Congress had been trying to liberal rules but due to LEFT oppose it was not done, so there were no connection between global came, that's why our investments in banks are safe. Only ICICI Bank has problem, this is the only bank which has connection with international, so directly affecting pressure from global economy. If reforms already done then the impact will be direct,now we are indirectly connected still pain witnessing, if directly connected...

As far as growth concerned we will see slow down as we are indirectly connected to USA, so if end of USA comes it will be very pain full time all countries for few years, because strict restrictions may rise in USA which will affect all sectors. Which will affect textiles, food; I T companies, and lot of. As the pressure will be on other countries, revenue from other countries will be less. It will lead all countries to very dangerous situation. Compared to other countries pressure will be less in India still its pain.

Happy Trading,

LakshmiStockGroup.com