Its a reversal of all sorts and US markets gapped down on global cues and then consumer confidence numbers hit the street with a bang pushing the indices
down. As mentioned in our earlier analysis this S&P might not be able to save the support levels. We see the next support for S&P at around 950-960 levels which is another 10 pct downside from current levels.
Indian markets cannot just move up when the world is crippled with issues. We are not expecting any rally this month. Infact a break below 5200 might make the Nifty test 5000 levels and then 4800 (a little tough to get here).
Midcaps are ruling the roast and it is better to stick with the quality names in the space or might be playing a waiting game is a good idea. Agri theme is building up on D-Street and ohhh, Boy watch Insecticides India. This stock gained nearly 500 percent in the last one year that too with volumes. Goldman sachs entered the stock around Rs 180 levels for its clients. United Phosphorous is one another stock we are bullish on. Aries agro is another stock to watch out for but the volumes are pretty low.
Power, Textile Retail, Agri based (not bullish on agri commdities though) are the sectors to watch out for in the next one year. It is undoubtedly one of the most uncertain period with excellent gains in the last 14 months or so but Indian markets are poised to outperform the globe and most likely to decouple the rest of the world but definitely not this month with another negative news in the form of rate hike looming.