Tuesday, August 17, 2010

Investors seek calm after yesterday's mini storm

Traders and investors are expecting a relatively quite start today after a stunning Bear raid on Dalal Street in the mid-market session on Monday.

US Economy in dolddrums

US markets closed flat yesterday after gap down open. While economic data released yesterday was mixed with manufacturing activity showing progress and home builder index raising doubts of a double dip.

DStreet's Boston based market analyst Satish Bhogadi says "US economic data in the past three months have clearly shows signs of fatigue and negative growth. We see both US economy and markets sliding for the next three to six months. We have a SELL on S&P with a target of 995"

Banks raising rates

While SBI raised both lending and deposit rates, ICICI bank raised prime lending rates by 50 basis points. Many banks are expected to follow with PLR hikes soon.

Music from midcaps

While we are yet to see the gush of retail money in the market, buying interest is slowly getting generated thanks to the melodious music from midcaps. Traditionally markets have seen heavy inflows in september and october.

Sector rotation, value unlocking, excellent quarterly numbers, land bank buzz are few of the reasons cited for the upmoves in the midcap space.

F&O traders

Traders who are either long or short Index futures might encounter a set back this month as Nifty is trading in extremely tight band. Traders make money when the markets are volatile