US Markets had a field day on Thursday as worries about Ireland's debt situation eased and better than expected jobless claims data.
Asian markets are trading higher on Friday on global cues. Barring Dalal Street rest of the global markets clocked decent gains on Thursday. Looking at Singapore Nifty at 07:00 AM IST today, the cues suggest another volatile day and traders are cautious to take positions to the upside.
Yesterday's rocky session caught traders on the wrong foot and we advice investors to stay put and cherry pick stocks at lower levels. While the current sell-off is not driven by any fundamental reasons, the year-end profit booking seems to have advanced and Chinese rate hike fears is just an excuse.
Midcaps to stay weak
During the current conditions Midcaps and Smallcaps will be out of favour and action will be more focussed on Largecap stocks. It is indeed a good time to add quality midcap stocks.
Inflation data is softening and thats good news for investors. The data will relieve RBI from considering another rate hike in the near term. FIIs were net sellers in Index Futures, Index Options and in Cash segment.
We expect market to open flat despite amazing global cues and staying short at these oversold levels might be a little tricky but certainly momentum is not showing any bullish moves.