Friday, June 11, 2010

China & Euro boosts global equties

It is one of those massive squeeze rallies happening around the global equity markets. It started with Chinese exports jumping big time sidelining European woes and positive comments by Trichet (ECB cheif) on Euro boosted sentiments giving a thumbs up to bulls.

Nifty too is looking solid at current levels and is expected to see another 1 pct easily from the current levels. While many of our subscribers and visitors to this site are eager to find out whether this is the end of the correction which started in the first week of May. We stick to our earlier view and it is pre-mature to be upbeat on the current upmove.

Traders who buy on dips and short on the upmoves might have done well in the last fortnight. But we are in for a one side move soon and we still vote for a big down side else where. Indian economy will get a shot in the arm this year from most likely normal monsoon. Fertilizer related stocks continued to move up with United Phosphorous and Insecticides India moving up handsomely.

Midcaps are back and so are speculators. Watch out for stocks like Gitanjali Gems, IFCI, BRFL, Nagarjuna Constructions which are looking excellent on charts. Things are suddenly looking upbeat. Don't get pulled into the rally. Patience pays big time and take a break from markets if you are a small investor