US Markets took a break from the slide, courtesy holiday on account of Independance day. Global equities traded in a band given no economic cues across the world. Indian markets are likely to end the trading band soon.
Heading down before we inch up ??
Our answer is yes for many reasons. Despite of positive talk in media and global press we are afraid we might not be in a position to sustain the current braveheart like situation. We are still not a mature market to de-couple from the global slide. While we are not sure about the next 3-4 trading sessions where in the US might see a recovery of atleast 2-3 pct. But in the next leg of downside D-Street might outperform W-Street. So traders watch out for unexpected bump to the downside. For investors we believe this would give an enormous and infact a final oppurtunity to enter Indian equity markets for a long time to come.
RNRL - Investors burnt their fingers
Banking on the brand name RNRL shares, despite of being a shell company enjoyed market interest. The current deal between R-Power and RNRL is in the best interest of the ADAG group and least concern about the shareholders. This incident once again proves that investors should be extra catious in dealing with these shell companies no matter who the management is. Once bitten, twice shy. Among ADAG group companies we like R-Power and Reliance Media World (longer term).
Its one of those uninteresting times on D-Street but we expect bears to dance soon