PERFORMANCE SUMMARY

The Indian markets have been on a tear lately as many positive developments have occurred ever since Mr.Chidambaram took over as the Finance Minister; we had outlined the case of a strong upsurge in April 2012 when the Nifty was trading at around 5200 levels recommending a 15% allocation to Indian equities. Our point of contention was as pointed out in our April 2012 issue was,

 ” The logic behind our stance is that the market has been extremely strong in the face of adversity in the last few weeks, despite bad news on the front of UP elections, budget, coal scam, GAAR, rising crude prices and so on. This is a very positive sign as per our studies and the technical picture suggests that there could possibly be a 12-15% kind of rally from current levels in the coming weeks. On the Fundamental side it seems that market has taken everything on chin be it higher crude prices, GAAR and even a small positive surprise on the fundamental side could trigger a strong rally. The good news is that those fundamental factors are appearing on the horizon now.

The first reason could be a fall in oil prices which is now becoming a possibility as per our technical studies, we feel Brent crude could easily slide to 107-112$ in the next few weeks. The second reason is that the spike which we saw in bond yields in the last 2-3 days could possibly be the last attempt at 8.65 levels and they will gradually grind lower towards the 8.2-8.3 levels in the coming weeks. Also a joker in the pack could be a possible tie up between Mulayam Singh and Congress which could help government to take some actions in the time to come.

The technical picture is also corroborating to a possible upside and the sentiment amongst market participants is too negative which is normally associated with sharp rallies. Thus we recommend a tactical allocation of 15% into Indian equities at this time through NIFTY BEES, BANK BEES, L&T and DishTV”.

As time has proved that all our contentions have been proved right and the Nifty has rallied 13% from those levels and the Bank Nifty has rallied 23%.

	Current Value	Percentage Return
AGGRESSIVE PORTFOLIO	14.31	43.10
NIFTY	5931	1.12

Percentage Return is the absolute percentage return from the start Date of 1^st April 2011 to end date of 6^th December 2012

In the past 20 months since we started recommending the model portfolio (start date 1 April 2011), the model portfolio is up an absolute 41% as against a measly 1.12% return on Nifty during the same period

FOR THE COMPLETE REPORT MAIL ME AT nshekhu@gmail.com