Bull breeze is blowing in Mumbai on Monday morning with investors excited enough to see D-Street closing in on the new highs. US Markets shot up Friday on better economic indicators.
Asia jumps on US cues
Nikkei is trading up one percent, despite of Japanese trade surplus coming below expectations while Australia jumped 1.25 pct.
Big Bull - Cautious on the market
Speaking to a private business channel Big Bull Rakesh Jhunjhunwala said "Investors need to be cautious as the gain in equities has been “very rapid in the last 15 to 20 days,". He also acknowledged that "the Indian economy and the Indian growth story is on a continuous uphill climb.” in the longer term.
High put-call ratio
NSE's Open Interest Volume Put Call Ratio climbed to 1.93 on Sept. 22, the highest since March 26, 2009. This shows traders are trying to hedge their positions by buying put options. While F&O expiry slated for coming Thursday will be a road block for the Indices to crack new highs soon. Volatility will only increase in the next few trading sessions.
Sector is a must and sitting in Banking and Auto will ensure investors miss the next bus. Realty as expected will be one of the sectors driving the market and Reliance is another big one which has the potential to keep the momentum running.
Given the kind of inflows India Inc is witnessing it is really tough to think of correction at this point of time. But when it comes it will be wild enough to drive investors crazy