Bears down but not out !!!!!

Bears are definitely down after making a fortune last month. But we do not rule out a possibility of a massive come back. Reports of Hungary's (Euro Zone) debt situation might keep them active. US Markets are trying to consolidate the gains made on wednesday. Asian markets too moved up big time on thursday. One should keep in mind that the markets are not in a better shape to run from here.

D-Street broke the 5100 jynx yesterday but it is too early to say that we are up for another bull run. Reliance Communication is on a roll on reports of a stake sale. The stock has gained nearly 15 pct in the last 2 days.

Retail investors will be good if they stay away from the current fight between the bulls and bears and watch one of them emerge victorous. Getting into markets at current levels will be suicidal. Paying a stock 5-10 pct more than current price is worth instead of buying during the current situation.

Cement May dispatches were good. There is some interest being shown in stocks like IVRCL, Nagarjuna Constructions and Lanco Infratech. Stay away from realty pack.

Also sources indicate Mr. Subbaroa might surprise with another round of rate hike before the stipulated time

Indian equities to recover

Wall Street jumped on better than expected pending home sales data on wednesday. Asian markets greeted wall street's upmove with a positive start thursday morning. D-Street is no exception with a gap up start expected.

We still question the current uncertainity and stick to our earlier view of sticking to sidelines. Nifty will look good only above 5100 levels. One should be extremely catious below that level.

While there were many stunning numbers from corporates this quarter, Suzlon and Punj Lloyd disappointed. One should be careful in picking stocks that have longivity and fundamental strength.

Shree Renuka Sugars has managed to salvage its billion-dollar acquisition of closely held Equipav SA Acucar e Alcool, the sugar and alcohol assets of Brazil’s Equipav Group. As per business standard's report the company will now be getting the 51 per cent controlling interest by paying only $240 million or Rs 1,080 crore, 25 per cent less than its original bid, sources close to the development said. What’s more, say sources, it will not have to give its own corporate guarantee to Equipav’s lenders for the Brazilian company’s debt.

Indian inflation is another cause of concern and RBI governor Mr.Subba Rao is in a tight spot to raise rates again. For today it is time to ride the rally

Looking down the hill !!!!

Nifty tanked yesterday courtesy a freak trade in Reliance and thanks to the ongoing credit crisis happening in the Europe. US Markets after trading in a extremely volatile fashion ended the day in the red with a sharp sell off in the last half hour.

Asian markets have started looking like as if they have decoupled from the advanced markets, but one should remember liquidity concerns are not country specific. And thanks to the summer period, which traditionally is known for tight liquidity we might see Nifty tank to 4650. We were extremely bearish from the last 2 months and here we go with what we mean.

We advised our subscribers to buy Nifty last wednesday and thursday and again mentioned this week we will see a smashing run from the bear cartel. Coming to economy, GDP, Monsoons one will be wondering why the markets fall despite of excellent conditions prevailing. We cannot defy Mr.Market and markets try to get an insight into few issues far before any retail investor gets a clue about it. This happenned during sub-prime and likely to repeat now. But as many expect we do not see this crisis to impact India in a major way. Panic is yet to be seen in Indian equities..

We are waiting for panic to set in midcaps to add few multibaggers.

Bears back on the battlefield

US Markets opened flat on friday only to end the day with extremely volatile moves. News of Spain's rating downgrade gave a thumbs down to the market. US Markets are closed today on account of Memorial day. Asian markets started the day in red though losses are limited to 0.5 pct

Indian markets are on a roll in the last 3 trading sessions with Nifty gaining as much as 260 points of 5 pct to trade at 5066. We believe Nifty will bump higher above 5100 levels. Metals pack lead the last two days rally with many domestic analysts feeling that the metal stocks are available for a bargain. One should remember that metal stocks reflect the global mood and the major part of the downfall is yet to come.

Euro woes will continue to haunt the markets in the next 2 months. Traders should time their trades to perfection, given extreme volatility and uncertain global economy. Realty participated in the last two days. But the picture for the sector is far from being rosy.

One should be extremely catious before jumping in the market. Wait for 5100-5150 level for Nifty to be breached before jumping in. Till then it is better to watch the show from a distance

Bears paused, D-Street to get the kicker from Wall Street

Wall Street spiked yesterday on china's comments about Euro. It is indeed a dead cat bounce from highly over sold terrirtories. Asian peers are doing well today morning. Indian markets yesterday closed up with Nifty closing near the "Max Pain" 5000. We were mentioning about Nifty 5000 closing from the last 3 days but thought it would be impossible to reach there.

One should be catious before buying on D-Street today as Indian markets has outperformed the rest of the globe in the last 2 days courtesy F&O expiry. Europe troubles ease at least for the time being but we are in for a correction which might unfold early next week.

Small investors are literally pani stuck given the market conditions. We are still not out the woods and as expected US data is looking weak. US revised GDP downwards which was a negative and ignored by markets yesterday. We expect the forth coming data to turn weaker further.

Avoid expensive and fancy sectors for now. We believe this time Nifty might not be able to hold 4800 if it attempts the level.

Triple witching day : A flat trade expected

Wall Street lost all the gains in the final hour of trade to end with losses, asian markets today are trading flat. Watching the tape of US Equities is giving a scary picture of things waiting to unfold in the next 1-2 months.

Yesterday's rebound in Nifty is very much in the expected lines. Today's F&O expiry is likely to close in a smoother fashion and we expect a less volatile flattish day. Options max pain is set at 5000 but it is highly unlikely that Nifty might close around that levels.

Nifty hitting lower highs and lower lows is a clear indication of the downward journey. We see an extremely bleak picture for the next 2 months. We are extremely bearish on the markets. Any rebound should be seen as a god's gift to exit the equity markets. This is not your regular correction phase. This is a crisis which will unfold in the next 2 months.

Bears will have the upper hand. Take a look at the support levels below

S&P bounces off support 2nd time in 2 weeks, D-Street looking for a positive open

US Markets bounced back off the support levels, especially S&P pulled back with high volumes to close the day in green. It started to be another nightmarish session on Wall Street only to end the day in peace. It is time for another pull back rally and here we go.

D-Street was crushed yesterday as if no tomorrow. Midcap unwinding is underway and we will see more and more midcaps join the slide. But for the time being it is time for a quick bounce back. With F&O expiry slated for tomorrrow we expect volatility to spike up but Nifty is likely to gain traction from these levels. 4800 appears to be a temporary support level.

Spain is added to the Euro woes kitty...We mentioned long back about PIIGS and things started coming true spooking investors. It is time to stay away and wait for markets consolidate. For a small investor these markets will be night marish.