Will Demonetization cause Recession in India?

On my trip back to Benguluru from Mumbai, I realized that traffic on famed Bangalore streets appeared to be much thinner than usual. As they say, cab drivers have the best pulse of the city, so I decided to chat up with my cab driver on how the recent demonetization and withdrawal of Rs 500 and Rs 1000 notes is affecting him and the city in general.

I half expected him to strongly complain about the sudden move and how the common man on the streets is facing tremendous issues because politicians in far away Delhi has decided to clean up the black money. However, I was surprised to hear cab driver's positive opinion and subsequent praise he heaped on Prime minister Modi. In his half broken Hindi, which he spoke with great spirit, he informed me on the heaps of notes being burnt in Benguluru halli's, his 15,000 savings on hand that he is unable to use now, and his views on changing political dynamics of whole country because of this move.

The current surge of patriotism in our country is unmistakable. But have we committed a hara-kiri in pushing the fastest growing economy in the world in a tailspin of recession, unknown economic ramifications and political uncertainty. Lets have a quick look to analyze this.

Inspiring words from a article..

Yes, India will change but on its own terms, quietly and easily. It may not become the centre of the universe. And if it does ever become the world’s next super power it will not be because of 10% GDP growth rate or the rise of a new nationalism or even its amazing youth power. It will be because of its wisdom, its compassion, its ease with living under its own skin and not wanting to be another China or Singapore.

All the new Modi has to do is to liberalise more. Liberalise the economy. Liberalise education. Liberalise culture. Nurture the emerging arts. Help grow India’s soft power and its incredible talent. Allow new ideas to flourish. Encourage tourism so that the world may see and love India for what it actually is. Liberalise tax policies; free the entrepreneurial spirit of the Indian people.

Read here

Nifty - Support and Resistance on weekly charts!

Ok, so Indian cricket team lost badly to Aussies and Nifty crashed in remorse! Is it pure coincidence or there is more to what meet the eyes? Pls remember that the world is flat and world of money and liquidity is even flatter!!

You will be surprised to know that there was a statistical study carried out between Indian cricket team performance on a big match day and Nifty performance on the same day, and it was concluded that Nifty ends on a positive note whenever Indian team wins their big matches!

Time to sell Eveready Industries and book profits.

Dear Readers,

This is a probably a good time to book profits in Eveready Industries for those who hold the stock from long time, or those who have bought the same in a momentum driven rally from last year.

The charts are cracking now, and stock reached a nice high of 291 Rs and is trading at Rs 269 today. Candles on daily charts are clearly losing momentum now. In a quick panic, when short term and medium term investors exit, the stock can easily lose 50 Rs from here and land at Rs 220-240 in a day or two of panic selling.

This high-school dropout built a $1 billion business selling phones nobody wanted!

Sometimes, I read these stories and get really inspired. This is so amazing that youngsters are finding newer things to do, are creative and brash and rack up a billion dollar business in no time. We are probably living in blessed times!!

Do read this startup tale and comment:

Most amazing Startup story i came across - Where do I wire the money, and I will not take it back!

South Korean investors wired 5MM dollars to Paypal in Mar, 2000 without even signing the deal and refused to take the money back.

When Thiel got on the phone with them and protested, the South Koreans refused to tell him where he could wire the money back.

“Their opening negotiation was, ‘We’re not telling you where you can send it back. You have to take it,’” says Thiel. “We ended up with them as investors.”

Read this amazing funny story here.

Nifty may start cracking from tomorrow!

Markets are behaving unusual from past 10 days or so. The breadth of market is consistently poor and Nifty and Banknifty are opening gap up and breaking new high! Is this unusual behavior? Lets look deeper..