WELCOME TO THE WORLD OF TRADING, A WONDERLAND OF ALICE - Mahindeesh (a) Sathish: 2010-11-07

Friday, November 12, 2010

HAVE A GREAT WEEKEND FOLKS

FROM AN EXPERIENCE

Everyone in this business will tell you how to be and what to do,

but the bottom line is that you’ve got to always be yourself –

flaws, emotions, stupidity, and all.

There’s a saying that the stock market is an expensive
place to figure how who you really are but I completely disagree.

Through the many years I’ve been trading, I’ve learned much

more about myself and the way I am both good and bad than

I think I would have any other way. And, for that I’m so very

grateful.

It is with little doubt that my experience in the markets have in turn

made me into a much better human being. For example,

one who thinks before acting, one that appreciates the importance

of looking at situations from different points of view, one that knows

that you can do everything right but still be wrong, one that

understands the influence that emotion has on decision-making,

one that remembers that no matter what mistakes you and I make

today – tomorrow we will have another opportunity to do better.

I’ve learned a great deal more, but I think you get the point.

My goal with those who I personally mentor is to help them become

who they really are and, by extension, to take full advantage of their

own personality and skills whatever they may be and at whatever

level they currently are.

The primary problem, however, is that

many of us really believe the key to success is to be more like

others whether it be Warren Buffett, David Einhorn,

George Soros, Doug Kass, Jim Chanos, Whitney Tilson,

Jim Cramer, or whoever you admire and respect.

As you know, one of the fastest growing businesses on the

Internet right now is to enable you in new and exciting ways

to trade and invest just like others, but in my view, that will only

take you so far in your personal journey. In the markets, sooner

or later, you have to find your own path!

Each of us have our own skills, strengths, weaknesses and

personalities and matching those with a strategy you can use

and develop over time is the closest key to your future success

that I can help you with.

Bottom line – don’t be like me or anyone else for that matter,

but instead just be yourself. Use this time in your life to find ways

to take full advantage of your own God-given talents and skills as

you develop them. While it is ok and, in fact recommended,

that you try to learn as much as you can from others (I know I have),

at the same time you must also understand and appreciate that

to true key to success is to find your own path just like every trader

and investor who you so admire right now has already done.

(to be contd)

TODAY’S TRADING STRATEGY

OF NIFTY FUTURES – NOV 12

Day resistance @ 6263-73 & 6295

If trades above 6223 for 15 minutes

and cuts 6237 a rally upto 6263-72

is for sure.

On the other hand,

If trades below 6237 and cuts 6220

Watch a non-stop slide upto

6202 (there exists a good support)

but if breaks this level too bcoz of any hike in volume

in mid-session, see much more

panic selling upto 6181-6159 in Nifty Future.

BANK NIFTY

Buy btwn 12975-99

T1 – 13038-58

T2 – 13070-77-102

Sell btwn 12895-71

T1 – 12832-12

T2 – 12799-92-68

SHARE TIPS TODAY (NOV 12)

Sell SGHL @ 212

T1 – 209.10

T2 – 207.10

Sell ASIANPAINT @ 2647

T1 – 2635

T2 – 2623

Sell JETAIRWAYS @ 873

T1 – 865

T2 – 859

Sell HINDOILEXP @ 275

T1 – 273

T2 – 271

NOTE

1.THE ABOVE GIVEN TIPS
ARE APPLICABLE ONLY FOR DAY TRADERS.

2.NEVER EVER ENTER INTO A TRADE

BEFORE THE ABOVE MENTIONED LEVELS

or AFTER THE TARGETS WERE ATTAINED.

3.STOPLOSS LEVELS, REVERSE TRADING & MORE

INTRADAY TIPS IN MARKET HOURS EXCLUSIVE

FOR THE SUBSCRIBERS

AN ASTRAL VIEW OF MARKET TODAY

While Jupiter is in Pisces, yellow products right from turmeric to gold and topaz, may remain in the news.Apart from this, tin, food products and camphor may remain under spotlight.

Besides this, if we talk about international countries then it's Spain, Egypt, Portugal.National Kundali: Haryana, Uttar Pradesh and Punjab may hit the headlines and remain in the news.

During the days when the Moon is in transit wit Pisces, edible oil and vanaspati ghee may remain in the news.

Moon in Capricorn in the 4th charan in Uttaroshada constellation the Lord is Sun. Now, Moon is going to meet the master teacher is present in Aquarius

Disclaimer

On repeated requests of the readers this astral prediction is started.

Traders are advised to attain some technical knowledge before they get into trades anyway

-EDITOR

IRELAND RESCUE IMMINENT AS

BUND SPREADS PASS 720 Bps

At last check Irish-Bund spreads were north of 725 bps, meaning

Ireland is now effectively insolvent, and joins Greece in the group

of bankrupt European countries. If this blow out is not stopped

immediately, the contagion will again spread to the periphery first

and then to the core shortly thereafter. The only question is when,

just like in the case of oh so coy Greece, will Lenihan admit defeat

and ask the IMF and the ECB for help (oh, and do it so during a

Citigroup-mediated conference call). However, as Market News

reports, citing Handesblatt, the Irish rescue may be imminent,

and may come as soon as today.

From Market News:

Eurozone governments are preparing for a possible Greece-style

rescue for Ireland although the country has not yet asked for

financial assistance, German daily Handelsblatt reported Thursday,

citing German government sources.

“The rise in Irish yields are a cause for concern” which is why

Eurozone states are now examining whether Ireland needs liquidity

support from the European stability facility, the paper said.

While Ireland had not asked for help as yet, euro area

governments are preparing for the emergency contingency.

“We are ready to help Ireland on very short notice,”

one of the sources told Handelsblatt.

Irish central bank Governor Patrick Honohan warned Wednesday

that Ireland’s current sovereign borrowing costs are unsustainable.

“I’ll readily say that the current rate is well above the rate at which

one would go back in [to the markets]. It is “unsustainable and you

couldn’t imagine them going forward,” Honohan said.

The Irish government thus far has assured that it will be able to

emerge from the current crisis without drawing on help from its euro

area partners.

Earlier Thursday, Irish 10-year bond spreads widened to a

fresh all-time EMU high at +640 bps above the benchmark

German Bund.

How about at 720 bps 4 hours later? If the rate of collapse persists,

Irish debt will be trading at levels that make Burkina Faso giggle.

ARE U ADDICTED TO TRADING?

The tell-tale sign of trading addiction

is a trader who cannot refrain from

trading–even when markets are

objectively offering no opportunity.

Even when losses are mounting.

THE TRAITS OF A SUCCESSFUL TRADER

The most important is discipline – I am sure everyone says that. Second, you have to have patience; if you have a good trade on, you have to be able to stay with it. Third, you need courage to go into the market, and courage comes from adequate capitalization. Fourth, you must have a willingness to lose; that is also related to adequate
capitalization. Fifth, you need a strong desire to win.”
– Gary Bielfeldt

DO I FEEL GOOD ABOUT MY

TRADING TODAY?

AFTER TWO HOURS OF TRADING, ASK YOURSELF:

“DO I FEEL GOOD ABOUT MY TRADING TODAY?”

Once two hours

have passed,

Cook says a day

trader

should have

made at least two,
or perhaps more,
trades,“but enough
to evaluate what
you have done.”
If the trader feels good about
the day’s trading, continue.

If not, stop trading that day.

(Please refer to ‘OUR POLICIES’ before you leave the site)

For further details,

Contact Admin (Analyst) @

(0)9788563656

MESSAGE TODAY

No matter what a woman looks like, if she's confident, she's sexy.

-PARIS HILTON

RELAX CORNER

An elderly couple were having dinner
one evening when the

husband reached across the table,
took his wife’s hand in his and said,

“Martha, soon we will be married 50 years,
and there’s something I have to know.
In all of these 50 years, have you ever been
unfaithful to me?”

Martha replied, “Well Henry, I have to be honest with you.

Yes, I’ve been unfaithful to you three times during
these 50 years,

but always for a good reason.

Henry was obviously hurt by his wife’s confession, but said,

“I never suspected.

Can you tell me what you mean by ‘good reasons?’”

Martha said, “The first time was shortly after we were married,

and we were about to lose our little house because we couldn’t pay

the mortgage.

Do you remember that one evening I went to see the banker

and the next day he notified you that the loan would be extended?”

Henry recalled the visit to the banker and said,

“I can forgive you for that.

You saved our home, but what about the second time?”

Martha asked, “And do you remember when you were so sick,

but we didn’t have the money to pay for the heart surgery you

needed? Well, I went to see your doctor one night and, if you recall,

he did the surgery at no charge.”

“I recall that,” said Henry. “And you did it to save my life,

so of course I can forgive you for that. Now tell me about the

third time.”

“All right,” Martha said. “So do you remember when you ran

for president of your golf club, and you needed 73 more votes?”

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No one loves hard work more than the one who pays for it.
I'm not into working out. My philosophy: No pain. No pain.

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LOOKING FORWARD TO YOUR VALUABLE FEEDBACK

FOR THE PROGRESS OF THE SITE.

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Thursday, November 11, 2010

THIRSTY THURSDAY

FROM AN EXPERIENCE

1. Never Get Carried Away With Yourself.
“The basic idea is that one should remain impervious to the illusions and trappings of wealth, as they often lead one to become carried away to the point where excess of one sort or another ultimately leads to one’s demise” (265).

2. Never Operate From a Position of Fear.
“If you are fearful in the markets, either as a result of taking a recent loss or some other mistake, or even as a result of being nervous about the level of risk you are taking, then you are putting yourself in the position of making and unclear and hence incorrect decision” (265).

3. You Learn More From Your Enemies Than You Do From Your Friends.
Make sure you take the criticism’s of others and use them to your advantage by recognizing that the more others criticize the more you value your own beliefs, trading or otherwise.

4. Never Stop Learning and Improving.
Always focus your mistakes and searching for ways to correct them. That way you will not be as tempted to make the same mistake again.

5. Never Talk About Your Stocks.
This is purely an ego taming exercise. While I personally believe it is ok to discuss technical analysis and stocks that may be on a watchlist there is really no benefit in bragging about success and hiding your failures. It is ok to be wrong.

6. Don’t Get Giddy at the Top.
Bigger charts (such as the WEEKLY) are the best barameters for giddiness. By watching over extended big charts, the trader’s emotions can be better managed thereby avoiding jumping on the caboose as the train is set to take a break from its recent trip.

7.Use Weekly Charts First, Daily Second, and Ignore Intra-day Charts.
No need to focus on the noise at the expense of listening to the still, small voice of Mr Market.

8. Find The Big Stock.
Look for stocks under accumulation and then begin buying in preparation for distribution.

9. Be Careful Who You Get Into Bed With.
Although not a trading rule per se, keeping good, solid company outside the charts, can help you be the best trader inside the charts. “Trust and integrity between two people are the most important variables in life and in business” (269).

10. Always Maintain Insane Focus.
Focus “is what makes life worth living, and by relentlessly pursuing our passions we attain the state of insane focus that in turn drives high levels of success” (269).

- O'NEIL

No matter what you think of O’Neil and his trading strategy, one thing is for certain. His commandments are applicable to all of us both in and outside the charts.

TODAY’S TRADING STRATEGY

OF NIFTY FUTURES – NOV 11

Day Support @ 6310

If trades above 6310 for 15 minutes a small travel upto 6317-20-32-40-52

Traders pls notice…

In normal opening Nifty Futures has its resistance

at all above mentioned levels in today’s session.

If 6352 too crossed with volumes

watch a non-stop rally upto 6375

& there after upto 6399

On the other side,

If trades below 6310 and cuts 6295

A slide upto 6273 is possible-

there exists the 2^nd support for Nifty Futures

Get into the levels properly and trade

with good concentration.

BANK NIFTY

Buy btwn 13131-55

T1 – 13195-215

T2 – 13227-35-59

Sell btwn 13051-26

T1 – 12987-67

T2 – 12955-478-23

SHARE TIPS TODAY (NOV 11)

Sell GLAXO @ 2254

T1 – 2244

T2 – 2234

Sell CANBK @ 820.95

T1 – 812.95

T2 – 804.95

NOTE

1.THE ABOVE GIVEN TIPS ARE APPLICABLE

ONLY FOR DAY TRADERS.

2.NEVER EVER ENTER INTO A TRADE

BEFORE THE ABOVE MENTIONED LEVELS

AFTER THE TARGETS WERE ATTAINED.

AN ASTRAL VIEW OF MARKET TODAY

During Jupiter will be in Pisces, financial institute, Education, Trust, Religious Trust, Charitable institutions, NGOs, airlines, paper Midia, sugar, imported - export, Medicine, formation medicine, Marine, fishre Shers, will be in news.

Today's moon in the constellation of Sagittarius Puarwashado the lord is Venus. moon and Rahu being in different Navmansh, but each other in the center because the moon is in Scorpio and Rahu Cancer Navmansh

Today and tomorrow, the pre-opening market may seem downwards; however, actually that is not be true.

Disclaimer

On repeated requests of the readers this astral prediction is started.

Traders are advised to attain some technical knowledge before they get into trades anyway

-EDITOR

THE BEST TIME FOR A TRADE...?

If you think about it, it makes sense – the very best time to buy something is when everyone is convinced that the price is going to fall lower, and the very best time to sell something is when everyone is convinced the price is going to shoot to the moon. Just learn the importance of trading against the crowd. The crowd is reacting to the market, and you learn to react to the crowd, this simple change in mindset can produce incredible profits if you are willing to look like a fool (in the eyes of others).

RISK

“Ancient man had no risk management.

Everything was left to ‘fate’ and the whims of the gods. Because

ancient man felt that he was merely a victim of circumstance he

did not see a need to plan for the future.

Therefore, he had no future.

In his book Against The Gods:
The Remarkable Story Of Risk,

Peter Bernstein plots out the
history of man’s
discovery of the law

of probabilities and
risk management.
Suffice it to say,
economic progress seems to run
parallel with man’s ability to discover,

quantify, and manage risk. Risk and reward are two sides

of the same coin. One is not present without the other.

You cannot receive the reward

unless you are willing to take the risk and you cannot expect

to keep that reward unless you learn to mange that risk.

It is imperative to master both subjects if you expect to be

successful in any endeavor,especially the arena of investing/trading.”

(Please refer to ‘OUR POLICIES’ before you leave the site)

For further details,

Contact Admin (Analyst) @

(0)9788563656

MESSAGE TODAY

What’s the worst thing that can happen to a quarterback? He loses his confidence.

-TERRY BRADSHAW

RELAX CORNER

BANKERS NEVER LEARN

The reason for the Recession — simplified.

A naked and drunken woman boards a cab in
London one night.
The Gujju driver keeps staring
and does not start the cab.
Woman : Haven’t you ever seen
a naked woman before ???
Gujju Driver : I am not staring at you lady ….. just wondering where you kept money to pay !!

The Moral : That is what most of the American
and European banks failed to do.
(i.e.) Assessing repayment capacity before taking
exposure !!!

Long live Gujju enterprise…

JUST SMS TO YOUR PAL

*What do I miss about my wife? Her absence.

*Some people live because it is illegal to kill them!

DEAR FRIENDS,

LOOKING FORWARD TO YOUR VALUABLE FEEDBACK

FOR THE PROGRESS OF THE SITE.

DISCLAIMER

Wednesday, November 10, 2010

HAPPY TOASTA WEDNESDAY

FROM AN EXPERIENCE

Play to win, not for a score. Traders who desire only to

make money versus simply trying to trade well and their

best ability will struggle. This is a money-focused game,

but trading well requires you to focus on goals beyond the

money to achieve the performance you really desire.

Take your eyes off the prize. Hunter explains that the “score

would happen if we focused on the process.” Too many traders

are only focused on the daily profit and loss statement

instead of focusing on improving the methods that produce

those profits and losses. Consistent, steady improvement

can only be gained after a trader commits to a full

understanding of the process of trading well.

Recognize a real gamble. When you are trading well, take

the possibility of a major loss out of the equation whenever

you can. It is true, when we are the most vulnerable is when

everything is going right and it seems like we can do no

wrong. Moreover, there are times to make the big aggressive

trade, and times when doing so is foolhardy. Recognizing

the difference is so very important.

There are a couple of professors in Ohio, who studied

any stock that Warren Buffett bought, if you bought on the

last day of the month, when it was public that he owned that

stock, and you sold it after it was public that he had started

selling it, you would have generated north of 20% annual rate

of return.

I would say that we will never see another Warren Buffett.

Just like we will never see any Albert Einstein or another

Mahatma Gandhi. Buffett is a very unique individual.

His skillsets outside of investment are phenomenal but they

get dwarfed by his investing skills. The main thing that

makes Warren Buffett Warren Buffett is that he is a

learning machine who has worked really hard for, let’s us say

seventy years, and is continuously learning every day.

So the thing is if you want to be like Buffett, there is no short cut.

First of all, you have to be deeply interested in investing and you

have to be very willing spending tens of hours, hundreds

of hours, reading the minutiae. There is a very famous value

investor called Seth Klarman. He is into horse racing. And his

famous horse is called Read the Footnotes.”
(to be contd)

TODAY’S TRADING STRATEGY

OF NIFTY FUTURES – NOV 10

Day Support exists @ 6310

Above 6317 no problem zone for Bulls

If trades above this level and cuts 6353

Non-stop rally upto 6372-6395 seen on charts

Heavy Buying started all over

NEW HIGHS VERY MUCH POSSIBLE

WITHIN FEW DAYS

BANK NIFTY

Buy btwn 13237-63

T1 – 13303-23

T2 – 13336-44-69

Sell btwn 13155-29

T1 – 13089-69

T2 – 13056-48-23

SHARE TIPS TODAY-NOV 10

Sell Uniphos @ 206.30

T1 – 204.30 - 203.75

Sell CorpBank @ 783

T1 – 776-774

NOTE

1.THE ABOVE GIVEN TIPS ARE APPLICABLE ONLY FOR DAY TRADERS.

2.NEVER EVER ENTER INTO A TRADE

BEFORE THE ABOVE MENTIONED LEVELS

AFTER THE TARGETS WERE ATTAINED.

AN ASTRAL VIEW OF MARKET TODAY

Overall, Nifty will remain in a particular range and do time-pass around the psychological figure. New position may not yield benefits.

Puarwashado constellation Sagittarius moon today in the first phase Moon cross Rahu so may hover around the surface or on the upper side.

There may be a small correction at 10:24, 11:15, 11:50 and there may be a high jump at 11:30; Be cautious says the astrologer.

Disclaimer

On repeated requests of the readers this astral prediction is started.

Traders are advised to attain some technical knowledge before they get into trades anyway

-EDITOR

WHAT'S WORTH READING?

worth softballs 1

“The mathematical expectation of the speculator is zero.”
-Louis Bachelier

was a French mathematician who was, well after the fact, credited with

founding the Efficient Market Thesis. In 1900 Bachelier published his Ph.D

thesis titled “The Theory of Speculation.” In his paper, Bachelier

discussed the use of Brownian motion to evaluate stock prices.
Unfortunately, his thesis was “not appropriately received”,
which resulted in academic black-balling and the concept
being buried for more than sixty years.

Almost sixty-five years later Professor Eugene Fama
from theUniversity of Chicago was officially credited
with developing the Efficient Market

Thesis after publishing his Ph.D thesis. His paper was titled

“The Behavior of Stock Market Prices.” The core tenet of his paper
and the Efficient Market Thesis is that an investor
“cannot consistently achieve returns in excess
of average of market returns on a

risk-adjustedbasis, given the information that is
publicly available at the time the

investment is made.”

Is it not somewhat ironic that the determination
of who founded the

Efficient Market Thesis was not efficient?”

WHENEVER YOU HAVE TIME READ
THIS AGAIN & AGAIN

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Contact Admin (Analyst) @

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MESSAGE TODAY

If you only believe when it's easy, you don't really believe.

-LAURELL K. HAMILTON, Obsidian Butterfly

RELAX CORNER

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FEEDBACK FOR THE PROGRESS OF THE SITE.

DISCLAIMER

Tuesday, November 09, 2010

SOUPY TUESDAY

FROM AN EXPERIENCE

Taking advantage of potential major winning trades
is not only important to the mental
health of the trader but is also critical to winning.
Letting winners ride is every bit as important as cutting losses short.
If you don’t stay with your winners, you are not going to be able to pay for the losers.

In addition to not over-trading, it is important to commit to an exit point on every trade. Protective stops are very important because they
force this commitment on the trader.

I often talk about the Battle Of Waterloo and how it relates
to trading in general and specifically strategy development.
If you don’t know the battle
(which I recommend reading about if you have time),
just listen to this once popular country song
and you’ll get a sense
to why I think this is so important.
While I’m no historian, I do think traders can learn
a lot about trading through learning about important
battles in history.
The Battle Of Waterloo offers a great example
as it offers many lessons for us to consider:

Make your planning and risk analysis commensurate with
the size of your project.
For major endeavors, contingency plans are critical.

Know when to cut your losses if necessary. Don’t let your
desire to succeed be the enemy of good judgment.

Be sure that the justification is clear for your project,
and that your entire team is sold.

Don’t become over-confident, especially after many successes.
Remember the basic principles.

Never attempt an unpopular endeavor in isolation.

Don’t make enemies. You are only as good as your allies.

Adopt leader style politics, not the Machiavellian style.
Look for the win-win.

Many of these lessons apply to good trading,
especially the ones
about the importance of having contingency plans,
knowing whento cut losses, having clear
justifications for your trades, the
importance of avoiding overconfidence and finally
how important
it is to attack from a strong position like having plenty of capital
and cash reserves.
Needless to say, every trading strategy has their own weaknesses.
So, what the most common weakness I’ve found? That’s easy –
human error. That’s right, usually most strategies that have been
backtested and proven to work continue to work well unless we do
things to either deviate from the plan and/or we apply leverage to it
rendering it extremely vulnerable. It is fairly often that I see traders
come forward with a hot strategy they’ve used and are in the process
of levering it up, creating havoc and exposing themselves to great
risk. There is good reason for the expression – leverage always kills.
In my experience, that has been true.
Beyond that, many strategies
are based on things that don’t account for the constantly
evolving nature of the market.
In sum, every strategy you employ needs to also have a list of
“warning signs” that will indicate whether you are facing a
Waterloo-like defeat. You can rest assure those in charge of the
quant trading systems have this in place already on Wall Street.
From my experience knowing and working closely with others
who do that for a living, they all have checklists every day that
tell them whether the system is
“operating within normal parameters.
” When the performance falls outside of that, the quants
know know to put the brakes on.
Do you do the same thing with your own
strategies? If so, then do you have a system in place to know
when you should put your trading on hold?
While you can show me all kinds of stats on how good a system
may be, but what I want to know is what will cause all of those
performance figures not to hold up in the real world. Bottom line
you must ask yourself what could happen potentially to cause the
strategy not to work or cause you a significant loss? Sometimes
that’s not possible to know especially when evaluating a new
strategy, but just having some suspicions when working with a
new strategy can often prove to be a true asset.
So, how do you learn its weaknesses? Backtesting can help,
but what I call forward testing helps even more. In my opinion,
nothing will replace the experience of watching the strategy day
in a day out coupled with how it reacts to different market
environments over a lengthy period of time.
That will provide you with hints when there is real trouble ahead.
Like most things, there’s nothing going to replace your experience
with the system. The experience is also necessary to build the level
of confidence you need to maintain and improve it as well and to
reject temptation to abandon it when it doesn’t perform up to your
expectations.
Remember, all traders sooner or later come to understand and
appreciate that it is only a question of when, not if, they are going
to be on the wrong side of the key trade. Strategies, even ones that
work perfect on paper, will always fail at some point sooner or later
on. The only question is how to utilize the strategy the best you can
up until that point AND to be able to pull the emergency chute
when it threatens your capital in a significant way.
So, next time you’re working a strategy that is making money
hand over first, take time to ask yourself this simple question –
Where will you meet your Waterloo? If you can always
answer that question to some degree, chances are good you never
will!
(to be contd)

The Reserve Bank of India today told banks that the restructured

loans of companies might pose a risk of losses over and above the

diminution in the value of advances.

The RBI warning — expressed in its Report on Trend and Progress

of Banking in India-2009-10 released today — comes at a time

domestic banking is witnessing a rise not only in non-performing

assets (NPAs) but also in the proportion of doubtful and loss assets.

According to the RBI norms, an advance is classified as NPA if

interest and/or instalment of the principal amount remains overdue

for more than 90 days. Doubtful assets are those that are

non-performing for more than 18 months.

While the NPAs are an important indicator of the financial

soundness of banks, the report said there were some emerging

concerns during 2009-10.

The asset quality of banks had been improving with the declining

level of gross and net NPA ratio since 1999. The gross NPA ratio,

which stood at 14.6 per cent in March 1999, fell to 2.25 per cent in

March 2008.

During the economic crisis of 2008-09,

the ratio remained unchanged. However in 2009-10, the gross

NPA ratio increased to 2.39 per cent. The net NPA ratio rose to

1.12 per cent in March this year from 1.05 per cent a year ago.

Gross NPA ratio was the highest for foreign banks, followed by

private sector banks.

“The empirical analysis taking growth rates of gross advances and

gross NPAs since June 2000 indicated that NPA growth follows

credit growth with a lag of two years. Asset quality can get

compromised during the periods of high credit growth and this

can result in the creation of NPAs in later years,’’ the RBI said.

Banks have resorted to loan restructuring to help creditworthy

borrowers hit by unexpected and adverse economic developments.

In such cases, there is a reduction in the interest rate or rescheduling

of the repayment of principal amounts.

Banks have recently been reporting slippages from restructured

accounts. The report, however, said the improvement in domestic

and global economic conditions could help limit the extent of fresh

slippages.

Citing the deterioration in asset quality, the central bank said signs

of financial stress remained an important concern for banks in the

medium to long term.

On liquidity, the RBI said sound liquidity management involved

prudent management of assets and liabilities supported by a process

of liquidity planning taking into account changes in economic,

regulatory or other operating conditions.

TODAY’S TRADING STRATEGY

OF NIFTY FUTURES – NOV 9

Day resistance @ 6333 & 6353

If trades above 6307
for 15 minutes

Hike upto 6333-43-53
is possible.

If 6353 too crossed,

Non-stop rally upto 6373-95
is seen on charts.

On the other hand,

If trades below 6308 for 15 minutes then

watch a slide upto 6289

And if 6289 is broken with
volume