Wall Street spiked yesterday on china's comments about Euro. It is indeed a dead cat bounce from highly over sold terrirtories. Asian peers are doing well today morning. Indian markets yesterday closed up with Nifty closing near the "Max Pain" 5000. We were mentioning about Nifty 5000 closing from the last 3 days but thought it would be impossible to reach there.
One should be catious before buying on D-Street today as Indian markets has outperformed the rest of the globe in the last 2 days courtesy F&O expiry. Europe troubles ease at least for the time being but we are in for a correction which might unfold early next week.
Small investors are literally pani stuck given the market conditions. We are still not out the woods and as expected US data is looking weak. US revised GDP downwards which was a negative and ignored by markets yesterday. We expect the forth coming data to turn weaker further.
Avoid expensive and fancy sectors for now. We believe this time Nifty might not be able to hold 4800 if it attempts the level.