Trump’s dramatic recovery from Covid spurs buying frenzy in Dalal Street
Yesterday, Mukeshbhai, Jigneshbhai and me headed out on a pilgrimage to the famous Holy place of Siddhivinayak Temple in Prabhadevi, Mumbai, to make offerings for the well-being of President Donald Trump.
We were accompanied by a horde of Punters from Dalal Street and also punters from MMB.
“Donald Bhai ne humare liye itna kiya hai. Hamara farz banta hai ke hum unki sehat ke liye prathana kare,” Mandakini (Shyambhai’s better half) had reminded us.
There is merit in Mandakini’s thinking because even when Trump was ravaged with fever from Covid, he was worrying about the state of the stock market.
“STOCK MARKET HIGHS. VOTE!” (for the Stimulus) the illustrious President had exhorted from inside the ICU in the Hospital, in a wake-up call to the Babus in the USA.
STOCK MARKET HIGHS. VOTE!
— Donald J. Trump (@realDonaldTrump) October 5, 2020
The President’s active interest in the stock market met with approval of the Pundits on Dalal Street.
“Abki baar phir kaka sarkaar,” one said in admiration.
And kaka is back with bang bang series of tweets
If I had a right will vote for kaka only
Abki baar phir kaka sarkaar https://t.co/YrSEJMVb2f
— KAUNfused CRAFTSman (@Amit_Gulecha) October 5, 2020
“God Save Trump!,” another prayed, his hands folded, head bowed.
God Save Trump!
— Kunal Saraogi (@kunalsaraogi) October 4, 2020
To everyone’s good fortune, Trump has miraculously recovered from the scourge of Covid and is back in the White House, thinking of ways and means to further bolster the stock market.
Also, Trump’s heroics with Covid have met with approval from the US populace and they are more likely to re-vote him into office as compared to his opponent Joe Biden.
Naturally, all of this led to a buying frenzy with the Bank Nifty spurting a mammoth 483 points and the Nifty keeping pace with 159 points.
Nifty will be at 12000 by Diwali
Sanjiv Bhasin has been reading the markets correctly and so we have to pay acute attention to his predictions.
During the depths of the Corona crisis, when the markets had plunged to unimaginable levels, he had sent the clarion call that we should “buy the fear” and not miss the opportunity.
Overriding global fear seeing stocks get cheap… watch out for 2nd half of March—- could see sharpest rally globally & locally-Buy the Fear for sweetest April rebound 🙏
— sanjiv (@sanjiv_bhasin) February 27, 2020
Then when the markets staged a dramatic recovery, he urged us to buy more with the assurance that the Nifty would touch 10,000.
— sanjiv (@sanjiv_bhasin) April 16, 2020
This prediction also came true with Nifty 10,000 now being a distant memory.
Thereafter, when the market had overreached itself, the veteran cautioned us to take some chips off the table on the ground that a savage correction was imminent.
“At 11,300 there is greed written across the screen …. There is a 500-point correction waiting to happen and that will differentiate the men from the boys,” he had warned in an ominous tone.
— RJ Stocks (@RakJhun) August 15, 2020
Needless to say, this prediction also came true.
Exactly spot on. Great work. 💯👌
— ankit seksaria (@AnkitAce) October 2, 2020
Now all eyes are on whether Sanjiv Bhasin’s latest prediction, namely, that Nifty would touch 12,000 by Diwali comes true or not.
“We are extremely bullish on the market. The Nifty will touch 12,000 by Diwali“, the veteran pronounced.
#IIFLExclusive: #MarketGuru and Director, IIFL Securities, Mr @sanjiv_bhasin's #October month #MarketOutlook drops only on our YouTube channel. Watch and subscribe for more exclusive updates. #Nifty https://t.co/5ofNhUYyzl
— IIFLMarkets (@IIFLMarkets) October 4, 2020
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It is worth recalling that the Nifty had last touched the magical mark of 12,000 in November 2019, as noted by Sonia Shenoy, the lucky mascot of Dalal Street.
Nifty hits 12000 🙌
— Sonia Shenoy (@_soniashenoy) November 6, 2019
At that stage, the blue-chip stocks had led from the front.
Sanjiv Bhasin opined that a similar hypothesis is likely to play out this time as well.
Front-bencher stocks like TCS, Infy, Hero Motors, Dr Reddy, Bajaj Finance etc is where we should invest our funds.
He also advised us to tuck into Banking stocks because the overhang relating to the interest waiver is now mostly over.
He also advised that we tuck into realty stocks because they have been underdogs so far.
Godrej Properties, the Blue-chip stock with impeccable management, is the ideal stock, he advised.