Trouble european county Greece got a soothing relief over the week end when IMF sanctioned a 145 billion dollar bail out along with the Euro Zone partners. Global markets are not interested in the news as the bail out number has increased the expectations and the soverign debt crisis spreading to Spain and Portugal. Watch out for negative news flow in the other two countries.
We were alerting the visitors of the website about Soverign Debt crisis in the European zone and Indian markets have not seen much of a impact till date. As situation gets worse D-Street will feel the pinch.
US Markets showed their back on Friday after Senate ordered for a criminal case against Goldie. US Economic data too is not strong enough to propel the bulls. One should agree that the economy has come up a long way, but there is still a longer leg to cover to finish off the race. Confining to local factors is not warranted in the current global situation.
Indian economy is running smooth and we do not see any internal impact on the economy. As the soverign crisis deepens, the story repeats itself - Slow down in fund inflows, increase in outflows etc etc. At the same time we do not expect Sensex to go down rapidly too.
Going long in equities at this point of time is not at all advisable, given the market conditions as the situation is tilted heavily towards bears...Midcap melt down is coming sooner than later. While long term investors should stick to their holdings, short term traders or swing traders should insure themselves from any downsides buying Nifty puts