SK Biswal Chief Engineer at ONGC. Interested in Stock option trading ,Technical Analysis of Stocks & Commodities

Dalal street handicapped with no long term trust capital

2 min read

Literally speaking ,if you are not careful and mindful in any money dealings be it with auto or taxi driver. electrician, plumber even vegetable vendors ,the crime takes place in India for mere Rs 50/- or 100/-.For arrogant people ,matter is really serious here .Its not joke .We all experience this reality. TRUST is God . Trust if clouded becomes Risk which then morphs into crime.In our charts ,congestion patterns may be crime zones with lot of emotional stress piled up there.

Investment and speculations in capital market can not be confined to Chrome high rises only and it has to come to street to real people. These investment decisions however are money spending decisions taken in Minds. Mind is fundamental factor which any market expert would know. Apart from need .the Mood plays predominant role preceding our spending decisions above all those good fundamental and technical stuff. Well, we do have sentiment indicators for this. But this metric  measures moods of brokers here ,less bothers about pulse of people as if they don’t matter. This is where we get our strategy wrong. Our stock exchanges and big market participants tend to view investors and speculators .specifically retail investors are victims of so-called animal spirits such as wants ,aspirations and greed,exuberance and above all herd mentality. This does drives them to lotteries, gambling,betting in IPL matches and card sessions. Just set up a predatory system that could attract these idiots and have shake outs and fake outs. They seem to have taken too seriously this Myth. But Human emotions are too ephemeral and vanishes fast. In fact our exchanges are being run exactly as our corporates are running .Crony capitalism. renteering without regard to Innovations and research for quick profits and minority stake holders are shortchanged and at the mercy of majority stake holders.This  is feudalism.fascism in corporate culture. This is evil which must end.Now it is high time to transit from this predatory style to more inclusive and democratic system with fiscal responsibility and accountability.

Blindly aping Wall street can not work for Dalal street because we have our peculiarity here. Crime  happening for Rs 50/- or Rs 100/- is reality not joke as many among us believe.Trust is everything.Retail participation can not grow with swank brokerages ,high-sounding speeches or glitzy Ads. It completely failed to seduce Desi bulls. Wolves of Dalal street have no Trust capital.

Capital called TRUST is created by democratic means not by randomness of market which is manipulated day in day out. If any passion is really created by our stock market.it is either indifference. or hatred similar to one we have against Pakistan.Incusiveness and participation in our capital market can grow with emergence of a leader like warren Buffet , George Soros or Carl Icahn and our very own Dhirubhai Ambani.Public does not follow stock brokers,financial expetrs and self important investment advisors.Public follow mass leaders and heroes of rags to riches story.Public hates professionals as touts cheats and manipulators.Our capital market has to throw up mass leaders who speak language of trust and risk that is understood by lay but sophisticated investors today.Magic  can happen then.

Risk does not sell ,Trust sells forever.Manipulation and Discretion are evils that kills any system.Democracy is built on trust and accountability.Capital market to be popular has to be trust worthy and a track record of creating wealth.

Historically we have examples of Narayan Murthy. Dhirubhai Ambanis as true industrial leaders.We need more such leaders now in financial world to fire popular passions.We have to create leaders.Capital market one day has to come to street.. This is destiny or else it going to remain hand to mouth and make belief.It has to be organized like cricket matches in stadiums of India played by Icons we trust and love ,not by wolves with towels hanging from the belt and running the creech.

SK BISWAL.

SK Biswal Chief Engineer at ONGC. Interested in Stock option trading ,Technical Analysis of Stocks & Commodities

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