Hungary debt, US jobs data and the bad news flow continues like a Tsunami. While we are not sure how many visitors to this website recollect our analysis. "The current Euro crisis will be followed by weak US economic data".
Things will only get worse. Do not believe or trust any positive blabberings about global ecnomy. Indian economy will slide too along with the global markets but impact is pretty minimal. It is more of a sentiment than real impact. We are pegging Nifty targets at 4600 in the next 2 months which is a 10 pct slide from the current levels.
Global markets are trading extremely weak today and can be termed as a black Monday with every index losing more than 3 pct while D-Street might not have anything to offer except to tamely go down.
We track US S&P for global market direction as currently global factors outweight local issues and every major market in the world tries to mimic the Big brother (US). S&P is on the verge of a major break down soon. 1045 is the final support and yes that is the final support. Take a note of the number. Below that we see a 10 pct dip in the indices in the US. Are we kidding ?? Nope we are absolutely confident of another 10 pct slide in the US markets if we crack the support levels.
The current wash out will clean up the system and here is another stunning number. We expect Sensex to touch 35,000 levels by 2014 december. One might be wondering that we are not done with the correction and we are talking about the bull run. But the current correction can be termed as a final oppurtunity to enter the Indian equity markets. But you still have time till July/August to do the same. One should accumulate on dips instead of trying to time the bottom.