Thursday, June 10, 2010

Asian markets decoupling ???

While US markets tanked from highs of the day to the lows of the day in a matter of 30 mins, Asian markets appear to be not too much concerned about Euro crisis for now. FTSE future are down 1.5 pct while Wall Street closed down with Dow losing 40 points after moving up 125 points at one time.

US Market appears to be on the verge of a major break down. S&P below 1045 which is a 10 point downside move from current levels will move to 980 and then 950 levels. Bernanke in his testimony did sound upbeat but the confidence is lacking and market figured it out.

Volatility is at its best during the later part of the day. Nifty got into the habit getting smacked from the highs of the day. It is better to go on a vacation from the markets instead of jumping the gun.

Midcaps showed good interest yesterday with MNC stocks like KPIT Cummins, Abbot India spiking up. Aviation stocks are doing rounds among broking circles especially after Goldie converted warrants in Spice Jet, taking its stake to 6 pct in the company. We believe the stock is a multibagger in the making in the next 3-4 years