The latest news is industrial output is at 16.8 % and every trader is wondering on how do we approach trade on Monday. The facts which are to be considered primarily are in spite of a stellar November IIP number also the markets fell that very same day. Positive surprises from earnings are not giving the markets the leg up at this moment and on the days of extremely positive global cues the market is at best sluggish with one or two rallies which mostly comes in the 9 to 10 window. After that any rally increases the selling pressure. However the market is reacting violently to any negative news. L&T fell almost a 100 rupees when its result did not meet the street estimates. So all these just necessarily suggest that the IIP numbers will not affect the market much and even if it goes up on Monday it will surely be followed up by selling pressure on Tuesday. This might just be the exit strategy for everyone who is stuck at higher levels.
However one thing that most people who are coming on TV 18 is missing is that the market was desperate for a correction for a pretty long time. Therefore this is just being used by people as the opportune moment to get into the market and with every fall more people are entering the markets. Besides FII's have been withdrawn relentlessly and that is also a reason for such a fall and not that the Indian investors are losing faith. So whenever there is a pumping back of the money the markets will rise again and probably break 5280 on the nifty( its intermediate high). Anyone who has been tracking the entire globe must remember how China fell o 2500 when the FII's were withdrawn and how quickly it reached back to 3200. So what my advice is start covering your shorts because this might just be the leg up the market needs for its pre-budget rally. Signing off.
SOUPTIK
Its better to make money at a lower rate
Than lose money in a higher rate.
Top picks of the week
1.DLF
2.UNITECH
3.ABAN OFFSHORE
4.SUZLON
5.WIPRO
1 comment:
quite insightful
Post a Comment