Wednesday, May 5, 2010

Sky is falling !! Euro debt fears hit global markets

The much ignored Euro debt crisis took its toll on the global asset classes. Stocks from Athens to Zimbabwe fell on massive debt concerns prevailing in Europe. We have been writing in this column about the same that markets cannot ignore debt concers for longer period and also mentioned May will be a dreadful month.

Wall Street was hit with a massive bear attack yesterday and the fear index popularly known as the VIX spiked up 26 pct . Volatility is here to stay and this time the trend clearly favours the bears.

Indian markets are no exception. When the funds sell (especially FII's ), they sell it hard. Fortunately though index is on the down trend we have not seen a bloodbath till date and one is round the corner. Investors should take this as an oppurtunity to get out of equities atleast trading positions. Operators are seen trying to get rid of the junk stocks.

Stay away from the markets and as mentioned yesterday to our subscribers below 5200 for Nifty the only support lies at 5050 on its journey to 4800, which can be considered rock solid suppport level.