Good morning friends,
You must have heard the news. If not then this is here.
The Union Cabinet on September 16 approved a government guarantee of up to Rs 30,600 crore for security receipts to be issued by National Asset Reconstruction Company Ltd (NARCL). Security receipts represent an undivided right or interest in a financial asset. Typically, asset reconstruction companies or a bad bank buy distressed assets paying 15 percent cash and the balance 85 percent in security receipts.
Addressing a press conference, the FM said, "We are also setting up an India Debt Resolution Company Ltd to manage the Non-Performing Assets (NPAs). In this company, public sector banks (PSBs) and state-owned financial institutions will own 49% stake." She added that private sector banks will also hold a stake.
Fine, this will give gap up for BANKNIFTY for sure. Ethically, I do not like such steps by government. Bad business should not be compensated by tax payer's money.
Well, what's the key for today then?
17700 is definitely coming. It is going to be another all time high and definitely the unexpected levels by many all time bulls.
So far, so quick and so big. Too to good to believe and too sharp. Its scary rise.
Not advising long, not advising short either.
Today is wait and watch day.
Big question, when will the market fall?
"The day least people will expect about it." Take a note, if fall comes, it will wipe out 800-1000 points in quick time when ever it come (means in 4-5 candles). It does not mean it is coming today or tomorrow. Neither I am recommending shorts. I am giving a warning prospect for bulls.
Happy Trading.
