Is ASI heading to 6500 level???

Markets are always intelligent, (not always the investors) In SL as well as globally. When they are over valued then follows the corrections automatically. some times they get over corrected in the same way they have got over heated. Just like a movement of a pendulous. My experience in markets is around 10 years, and I have seen plenty of such pendular movements.
if one can remember the longest bear period from 2007-2009, we know many people/companies who invested in those periods(where others were runing away) earned millions. JKH was below 60 those days with very low P/E.

History repeats and CSE heading another bottom of a sinuous wave and some day will reach the peak as well.

If acadamic was talking only about overvalued stocks like CLND,LOFC,GREG and many hotel stocks etc , then I can agree 100 %. but as mono mentioned there are many undervalued quality stocks with low p/e ratio even you disregard the earnings from non-operating income. My opinion is, at this stage we can't use the blanket statement "CSE is heavily overvalued" which I believe is misleading. we can find plenty of good and great opportunities at CSE

It has to go up after elections, I think. Investor confidence should be the key.

RockStock wrote:Markets are always intelligent, (not always the investors) In SL as well as globally. When they are over valued then follows the corrections automatically. some times they get over corrected in the same way they have got over heated. Just like a movement of a pendulous. My experience in markets is around 10 years, and I have seen plenty of such pendular movements.
if one can remember the longest bear period from 2007-2009, we know many people/companies who invested in those periods(where others were runing away) earned millions. JKH was below 60 those days with very low P/E.

History repeats and CSE heading another bottom of a sinuous wave and some day will reach the peak as well.

If acadamic was talking only about overvalued stocks like CLND,LOFC,GREG and many hotel stocks etc , then I can agree 100 %. but as mono mentioned there are many undervalued quality stocks with low p/e ratio even you disregard the earnings from non-operating income. My opinion is, at this stage we can't use the blanket statement "CSE is heavily overvalued" which I believe is misleading. we can find plenty of good and great opportunities at CSE

ASI will stop dropping when you stop selling. simple as that.
remember here at cse you cant short. onlyway the market could go down is by panic selling.

@gann , said it correctly ,Investors are selling ,Selling no stop.
Why they are selling,because the fear of credit clearance,diluting fear(rights and ipo).lack of confidence in the system.

mra wrote:Is ASI heading to 6500 level???

As I feel 6000 is also possible.

6000 is possible due to panic selling and margin calls.

What can the investors really do without selling their valuable shares at a loss?

Probably you can try margin trading. Some banking and finance sector institutions are offering 1 to 1 MT facilities on a p.a. rate of 18%

This will not only avoid the retailers selling their valuable stocks at a loss, but also you can earn some bucks. Imagine, you earn 19% p.a. still you've 1% profit. But this is not for those who are on sky high margins.

What are the other pros and cons of margin trading?

Have any of you thought the damage done by policy makers them selves? I'm thinking if the regulators were strict on the credit period and not dragged till Sep-Dec, by June 30th we'd have seen the market bottom and recovery now..

You can blame ppl who are geard with emotions when they see losing money.. Everybody will try minimising their losses as waiting and selling tomorrow triggers more loss for them.. Market is keep going down for 3 day then come up 2 days and then again 2-3 days down.. This is the pattern..

When ASI was over 6900 and falling we thought it would fall to 6800 then bounce, instead it went down more.. The more we think its bottom we see more bottom that that the nxe day..
How do u find it feasible to hold on to fundamental share when there are no value in holding due to heavy hammering?
Seriously.. now SEC should allow shorting at this bear period if they intend to drag this credit issue more..

RichDad wrote:6000 is possible due to panic selling and margin calls.

What can the investors really do without selling their valuable shares at a loss?

Probably you can try margin trading. Some banking and finance sector institutions are offering 1 to 1 MT facilities on a p.a. rate of 18%

This will not only avoid the retailers selling their valuable stocks at a loss, but also you can earn some bucks. Imagine, you earn 19% p.a. still you've 1% profit. But this is not for those who are on sky high margins.

What are the other pros and cons of margin trading?

People should think twice before utilizing margin facilities at this high interest rates. You should be really lucky to earn more than 18% in this market from normal businesses. Also most sectors are either over valued or fairly valued, so earning above this rate will be a difficult task. Invest money only if you can afford to lose the whole capital.

Friends i missed this valuable thread (I was out of touch due to my accedemic activities )
It seems i have lost the best part in the discussion.

I accept market is over value (not all stocks but many )

What i feel this market down trend due to systematic risk where entire market is affecting such as

foreign investor sentiment
global security uncertainty
Add hog policy change by regulators

Then stuck of funds in IPOs, PP , Right issues
Lack of credit due to change in margin trading rule
Credit clearance dead lines

I think SL is loosing its International reputation little by little (due to poor vision of rulers) this may also play a part.

All these created lack of investor confidence

@ Accademic - Thanks for your explanation

smallville wrote:Have any of you thought the damage done by policy makers them selves? I'm thinking if the regulators were strict on the credit period and not dragged till Sep-Dec, by June 30th we'd have seen the market bottom and recovery now..

You can blame ppl who are geard with emotions when they see losing money.. Everybody will try minimising their losses as waiting and selling tomorrow triggers more loss for them.. Market is keep going down for 3 day then come up 2 days and then again 2-3 days down.. This is the pattern..

When ASI was over 6900 and falling we thought it would fall to 6800 then bounce, instead it went down more.. The more we think its bottom we see more bottom that that the nxe day..
How do u find it feasible to hold on to fundamental share when there are no value in holding due to heavy hammering?
Seriously.. now SEC should allow shorting at this bear period if they intend to drag this credit issue more..

Hi Smallville, How Shorting can be used to change the down trend market ? Pls explain for our knowledge...

I just saw this, the following has been taken from Investopedia for ease of explanation and modified accordingly;

Short selling is the selling of a stock that the seller doesn't own himself. More specifically, a short sale is the sale of a security that isn't owned by the seller, but that is promised to be delivered.

when you short sell a stock, your broker will lend it to you. The stock will come from the brokerage's own inventory, from another one of the firm's customers, or from another brokerage firm.
The shares are sold and the proceeds are credited to your account.
Sooner or later, you must "close" the short by buying back the same number of shares (called covering) and returning them to your broker.
If the price drops, you can buy back the stock at the lower price and make a profit on the difference.
If the price of the stock rises, you have to buy it back at the higher price, and you lose money.

When an investor goes long on an investment, it means that he or she has bought a stock believing its price will rise in the future.
Conversely, when an investor goes short, he or she is anticipating a decrease in share price.
So u can see that short is a good technique to apply when u see a down trend of a stock which can be made coinfirmed mainly by technical analysis, chart pattern analysis.

Most of the time, you can hold a short for as long as you want but
you must pay the lender of the stock any dividends or rights declared during the course of the loan.
If the stock splits during the course of your short, you'll owe twice the number of shares at half the price.

Thnkx smallville

nice discussion, thanks everyone who participated
I think I saw this before & ignored, what an idiot am I..

Ane I agree with U Sas

ranjanie wrote:Ane I agree with U Sas

about the "idiot part" right,... he heeeee..

it is not easy to ignore official announcements 50 and 25 . it was officially published in CSE web site. only a small amount may be left. market is going to be green again.

Soundchips wrote:it is not easy to ignore official announcements 50 and 25 . it was officially published in CSE web site. only a small amount may be left. market is going to be green again.

oh oh buddy, I think you misunderstood me, I said about the ignoring of this thread started 19th July.

sas wrote:

Soundchips wrote:it is not easy to ignore official announcements 50 and 25 . it was officially published in CSE web site. only a small amount may be left. market is going to be green again.

oh oh buddy, I think you misunderstood me, I said about the ignoring of this thread started 19th July.

I thought about 25.

smallville wrote:I just saw this, the following has been taken from Investopedia for ease of explanation and modified accordingly;

Short selling is the selling of a stock that the seller doesn't own himself. More specifically, a short sale is the sale of a security that isn't owned by the seller, but that is promised to be delivered.

when you short sell a stock, your broker will lend it to you. The stock will come from the brokerage's own inventory, from another one of the firm's customers, or from another brokerage firm.
The shares are sold and the proceeds are credited to your account.
Sooner or later, you must "close" the short by buying back the same number of shares (called covering) and returning them to your broker.
If the price drops, you can buy back the stock at the lower price and make a profit on the difference.
If the price of the stock rises, you have to buy it back at the higher price, and you lose money.

When an investor goes long on an investment, it means that he or she has bought a stock believing its price will rise in the future.
Conversely, when an investor goes short, he or she is anticipating a decrease in share price.
So u can see that short is a good technique to apply when u see a down trend of a stock which can be made coinfirmed mainly by technical analysis, chart pattern analysis.

Most of the time, you can hold a short for as long as you want but
you must pay the lender of the stock any dividends or rights declared during the course of the loan.
If the stock splits during the course of your short, you'll owe twice the number of shares at half the price.

Thanks Smallville.