Nifty tanked yesterday courtesy a freak trade in Reliance and thanks to the ongoing credit crisis happening in the Europe. US Markets after trading in a extremely volatile fashion ended the day in the red with a sharp sell off in the last half hour.
Asian markets have started looking like as if they have decoupled from the advanced markets, but one should remember liquidity concerns are not country specific. And thanks to the summer period, which traditionally is known for tight liquidity we might see Nifty tank to 4650. We were extremely bearish from the last 2 months and here we go with what we mean.
We advised our subscribers to buy Nifty last wednesday and thursday and again mentioned this week we will see a smashing run from the bear cartel. Coming to economy, GDP, Monsoons one will be wondering why the markets fall despite of excellent conditions prevailing. We cannot defy Mr.Market and markets try to get an insight into few issues far before any retail investor gets a clue about it. This happenned during sub-prime and likely to repeat now. But as many expect we do not see this crisis to impact India in a major way. Panic is yet to be seen in Indian equities..
We are waiting for panic to set in midcaps to add few multibaggers.