Euro Ray Of Hope ?

Shares are set to surge, with appetite for risk assets seen rising after European leaders agreed on a supervisory body for euro zone banks and to allow them to be recapitalized directly by the rescue fund without adding to government debt.

But I'm a bit still cautious as we have seen the cases where different leaders later say different things and we find out that there remain disagreements. As a result, the greenback (Dollar) is expected to slip against the Yen, Euro and Indian Rupee.

High-beta currencies like the Australian dollar, which shall enjoy a surprise short-covering rally. These gains on the euro zone news.

European leaders agreed on Friday to create a single supervisory body for euro zone banks and allow them to be recapitalized directly by the currency area's rescue fund without adding to government debt.

Still, there was a degree of skepticism with me waiting for more clarity about the measures agreed. I want to point to considerable execution risks in the move to empower the ECB with a supervisory role that could prove to be contentious. Besides, the market would soon start to question whether the euro zone's rescue fund has enough resources to recapitalize banks and buy peripheral bonds given the huge debt liabilities of both Italy and Spain.

Thanking You

Atul Sikrai

Sr Vice President

wiTdom investment advisory

Zombie Banks.

As per our last blog stock market around the world went up.

We think that temporary up move is now over .We are expecting another round of sell of coming. Economic outlook still remains weak. We suggest you to book profit on all your long trade. Professional traders can go short.

Let’s talk about zombie banks in our banking system around world.

Here’s a simple explanation for why the world’s zombie banks remain so reluctant to write off worthless assets. wiTdom still see a huge hole in the banks’s books that its executives have yet to admit. Had zombie banks taken swift action sooner to mop up and replenish its balance sheet, it might not be in the precarious position it is today.

Other struggling lenders in Europe and the U.S. will see both examples as more reason to paper over their losses, which will make their problems and the eventual cleanup worse. Delay- and-pray is never a good strategy. Unfortunately it’s the only one a lot of zombie banks have left.

Some of the Zombie (Scary banks) is yet to be unearthed. We see lots of trouble in Euro zone. We expect S&P to fall to 1280.You can also go short on Nifty with SL of 5255.

Nifty is expected to fall back to 4780 if 5000 is broken. Bear case for Nifty is supported because rain has been delayed and is expected to be below average. Inflation is still the concern. No rate cut by RBI .Fed kept its gun powder dry. Absence of QE3 is end to near term up move in speculation.

Thanking you

Atul Sikrai

Sr Vice President

wiTdom investment advisory.

Blog Report Card

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Where there is will there is Way!

Pooling Euro Zone Bad Debt

Where there is will there is a way!

Germany has indicated that it is prepared to accept a grand bargain that would provide greater support for its most indebted euro zone partners in exchange for far more centralized control over government spending in Europe. More likely is a plan to combine much of Europe's bad debt into a single fund, with the idea of paying it off over 25 years -- an idea gaining traction in Germany as an alternative to euro bonds, officials say. Changes on this scale would not be easy, involving an arduous process of treaty alterations that could take years, and it is unclear if they would be enough to reassure markets of the euros stability.

  Nifty has formed short term bottom near 4780.We are  suggesting to close all short position with profit and go for adventurous Long on Nifty. Nifty expected to jump towards 5130-5200 in near term future .Things that make us  bullish on nifty is that government is coming back with some reform for growth. RBI expected to cut rate in future. And very important factor is that Rain God has arrived in India.

Now this blog is ray of hope for bulls.

After reaming bearish for last three month we feel markets are showing some near term bottom out stage. Markets around were falling from last 3 months we expect some up move in near term. ECB is expected to cut rates. Even Fed will come to rescue market with help of QE3.

Thanking You

Atul Sikrai

Sr Vice President

wiTdom investment advisory.

Pooling Euro Zone Bad Debt

Where there is will there is a way!

Now this blog is ray of hope for bulls.

After reaming bearish for last three month we feel markets are showing some near term bottom out stage. Markets around world were falling from last 3 months we expect some up move in near term. ECB is expected to cut rates. Even Fed will come to rescue market with help of QE3.

Germany has indicated that it is prepared to accept a grand bargain that would provide greater support for its most indebted euro zone partners in exchange for far more centralized control over government spending in Europe. More likely is a plan to combine much of Europe's bad debt into a single fund, with the idea of paying it off over 25 years -- an idea gaining traction in Germany as an alternative to euro bonds, officials say. Changes on this scale would not be easy, involving an arduous process of treaty alterations that could take years, and it is unclear if they would be enough to reassure markets of the euros stability.

  Nifty has formed short term bottom near 4780.We are  suggesting to close all short position with profit and go for adventurous Long on Nifty. Nifty expected to jump towards 5130-5200 in near term future .Things that make us  bullish on nifty is that government is coming back with some reform for growth. RBI expected to cut rate in future. And very important factor is that Rain God has arrived in India.

Thanking You

Atul Sikrai

Sr Vice President

wiTdom investment advisory.

Blog Report Card

Page views all time history   4,750

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