After a disastrous week equity markets are on a recovery mode today. Asian markets are trading up while US Stock futures sky rocketed, currently trading up 200 points. The major reason behind the upmove is the following news snippet:
"The European Central Bank confirmed late Sunday that it will buy government bonds in the secondary market to ensure debt and liquidity to those market segments which are dysfunctional"
We expect the markets to pull back in the next two days while down trend will resume in the later part of the week. Here is the catch.....Do not get into midcap counters and try to ride the frontline counters.
We expect Nifty to take a shot at 5200 levels only to fail later. One should keep in mind that the pull back is just a bounce after a dreadful week. Patni computers is showing immense strength in a other wise weak market. ET reports that
"The three Patni brothers, who co-founded and promoted the country’s sixth-largest software exporter, Patni Computer Systems, may get a premium for selling their stake to Japanese strategic investor NTT Data Corp, as compared to private equity firm General Atlantic"