Thursday, June 17, 2010

Markets likely to cool off

After a rapid climb over the last 10 days, equity markets across the globe are likely to cool off. Despite of negative home sales numbers the impact was minimal on Wall Street.

Rate hike checked the market rally in Indian markets yesterday. Nifty is trying to consolidate before the next move. While many predict an upmove we still believe the current rally as a head fake rally extended from oversold levels. The current pull back rally has very limited chances of getting converted into a full blown rally.

RBI might surprise the market with a rate hike this week end or some time in the next week. Inflation will keep the government on the edge.

Junk stocks are moving up again. Do not fall prey to operator games