Friday, April 30, 2010

Markets to take off in the green zone

Markets will be opening in the positive zone today but watch out for the later session. Markets are trying to shrugg off the bad news and take off on the good news. It is clearly evident from the last 4 months market movement.

May is here and traditional data shows there will huge sell-offs this month. Last year there was a massive rally contradicting the data. Few midcap results have been stunning in India.

Patni reported a 100% rise in net profit to Rs 157 crore for the first quarter ended March 31, 2010, on improved demand for outsourcing services as well as foreign currency gains. IT is definitely a sector to watch especially the second rung pack but one should keep an eye on the forex markets.

Among other sectors Autos are ruling the roast along with Auto ancillaries, Real estate is yet to pick except for bits and pieces of the country. Commodities are seen stretching from last year's pull back. We expect a bigger set back here.

Today's rally might lure many into the bull side brushing off the wednesday's slide, but this might be one trap you would want to miss out on. After all May is coming and that too after a massive pull back