It was a roller coaster day in the global equity markets yesterday. Firstly Indian markets jumped big time intraday only to cool off during the fag end of the session. Simillarly US Markets were down 100 points at one point of the day only to close higher.
It is extremely annoying for bears to see the bulls coming out as winners in almost every occasion. From a technical perspective its bad news for bulls, the more this rally stretches with out meaningful correction the more chances of a prolonged correction when it actually starts.
BOA/Merril's upgrade of SBI yesterday at around 10.00 AM pushed the indices higher. It was clearly seen that some amount of short covering added fuel to the fire. We again re-iterate that cheap dollars are propping up the current global equity markets. We are just weeks away from a massive beating. We strictly advice investors to stay away from the equitymarkets.
Interesting block deals were witnessed in stocks like Unitech, Ruch Soya and Axis Bank. While sticking to quality names is relatively better than getting pulled into midcap mania.
Expect huge volatility to dominate this month's F&O expiry.