Baltic Dry Index Given Positive Cross-Over on Daily Charts !

The Baltic Dry Index (BDI) is a number issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index tracks worldwide international shipping prices of various dry bulk cargoes.

The index provides "an assessment of the price of moving the major raw materials by sea. Taking in 26 shipping routes measured on a timecharter and voyage basis, the index coversHandymax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain.

The BDI has closed  at 2213 with a gain of +0.60% on 24 Nov 2010. On Daily  price chart ,it has given a Positive –cross over, suggest that the Decline in the  Equity market may  halts in few days. Our Indian Index is declining manily on the news of scams.

Why Interest Rates Affect the Stock Market?

1.Interest Rates influence stocks prices because they affect corporate profitability , alter valuation relationships, and influence margin Transactions.

2.Interest rates have led stocks prices at major turning points in virtually every recorded business cycle.

3.It is the ROC of interest Rates, rather that their actual level, that affects equity prices.

4.Short-Term  interest rates generally have a greater influence on stocks prices that longer-Term rates.

5.Changes in the Discount rate  offer strong  confirmation that a primary-trend change in money-market prices has taken place.

6.Reversals in the Trend of the discount rate offer early-bird warnings of a change in the primary trend of stock prices.

7.Intermarket relationships can be used to forecast or identify primary-trend reversal in bond prices and yields. 

Nifty @ 14000 and Sensex @ 40000 by 2020

Kondratieff, a Well  Know Russian Economist, who used Whole Sale Price Index in 1926 to Guage the Long Term Wave of World’s Economy, used 40 Years Long Business Cycle.

The Wave has made lows in 1780,1840,1900,1940,2000 and Peaks in  1814,1864,1920 & 1970 respectively.

Our Indices (Nifty & Sensex) has made low in 2000(Also the Kondratieff Wave has made Low in 2000) and after that We have seen one Great BULL-run from 2001-2008 and a Melt-Down from 2008-2009.We are in the Half-Way of Kondratieff Wave. The existing Bull Run will last till 2020 and we may see minor correction in Indian Stocks Market as well in Between and Hope that Nifty Will Touch 14000 and Sensex 40000 by 2020.

After that We may see a Major World Economy Crisis. Possibilities of 3^rd-World Ward may not be Ruled out after 2020, when there will be a Shifting of World Market Leader from  USA  to China or Say Asian Countries and a longer period of Higher Interest Rate and High Inflations after 2020 is also expected .

It is prudent to Ride this Nifty’s 14000 Journey with Blue Chips Stocks only  with 80% Load & rest 20% with the new-business opportunity Stocks .