Another range trade on cards

Markets are likely to open subdued today. The volume strength in the market is missing.US Economic data continued to be mixed while quarterly numbers are stunning. One needs to see whether US Economy has legs with out sufficient job growth. After hours Goldman Sachs settled with SEC, federal claims that it misled investors in a subprime mortgage product as the housing market began to collapse.

Indian markets are going through a typical upmove but unconvincing volumes and no leadership sector makes us believe we might not be there yet for a break out. Realty is one sector that has steam. Unitech and DLF are looking positive on charts. Metals and Banking should be avoided in the short term. For an investor it appears to be a confusing period but medium term outlook remains bright for Indian economy

Skepticism about global recovery keeps bulls away from the market

Below 5350 Nifty weak

Indian shares are expected to trade lower today after a tepid performance from Wall Street on Wednesday, and signs of a slow down in Chinese economy.Expect the benchmark index or the Sensex to trade in a band of 50 to 100 points with a downward bias.

The Chinese first-half GDP growth came in at 11.1%, slower than the 11.9% growth recorded in the first quarter. The CPI and PPI indices came in below expectations reaffirming the notion that things might slow down.

IT was the worst performing sector yesterday, while Consumer Goods stocks fared well. Metal stocks might be under pressure, thanks to the bad news from China.There were some fire works on Wednesday in the Midcap space even on a lacklustre day of trade. Gitanjali Gems, Agro Dutch Ind and Universal Cables are some of the stocks that look explosive for short term investors

No resistance zone !!

Nifty finally breaks out !!! The index is likely to go scott free till 5500 levels. One interesting point to note US majors Alcoa and Intel came out with excellent numbers while Indian biggies seems to have lost though it is too early to comment keeping in mind Infosys numbers.

In the next 3 weeks one can witness flurry of earnings activity. Realty is the latest entrant to the bull run. We want to bet on Mumbai realty companies especially Ackruti city and Orbit Corp as the stocks never got excited even when the Mumbai real estate market hit the top.

How long we continue to the upside ?

Last 10 days have been a feast to the bulls with low volume support. US earnings appears to beat the market. Chinese and Indian growth started slowing down. While chinese markets reacted to the same, Indian markets haven't despite of low IIP numbers. It is really tough to predict the market at this point of time but given the upbeat sentiment Nifty's move towards 5500 might be a cake walk

SGX Futures pointing taking over 5400 levels today

The much awaited 5400 levels for Nifty is under big threat from Bulls today. Alcoa, the global aluminium giant kicked off the earnings season in the US with better than expected numbers today. All eye are on Infy but the company might not surprise on both sides. We expect the results of Infosys to be a non-event.

The only drawbacks of the current rally are the volumes be it US or India. The upmoves or pull backs in case of US markets are backed with very low volumes, while the slides are accompanied with huge volumes. Though Dow Futures are pointing an upmove tomorrow we believe tomorrow's US market might set the near term trend. Coming to India it is quite heartening to see the markets trying to de-couple from the US markets. But IIP numbers were poor and tough to ignore. We strongly believe we might be in for a surprise despite of the positive talk about new highs.

One should stick to quality stocks and avoid speculation in case of any surprise

Is a break out imminent ??

Nifty is all set to move up but one more confirmation is required today. Volumes doesn't confirm a move but the levels might confirm the same. US markets pulled back from the lows last week to close up sharply.

We are still skeptical about global equities in the extreme short term. One should wait and watch before proceeding. We expect US markets to resume sliding again this week. Indian markets on the other hand will be keenly watching the quarterly numbers.

We spotted a pick where heavy insider buying coupled with excellent fundamentals. The stock is undoubtedly a doubler from the current levels

Nifty to attempt the sky again but all odds

favour the bears. US Markets moved up again to clock back to back gains but on poor volumes. This is a classic text book pattern where in the pull backs are happening during low volume days or viceversa.

Nifty might gear up to attack the much awaited 5350 band but we believe Nifty is against all odds. And remember in the next leg of down cycle we will outperform the global markets. Every other analyst on TV is bullish with midcap fever spreading across the board.

Negatives far outweigh positives in the short term and markets will look for a small reason to melt down. We are extremely bullish on Indian economy over the medium term but short term hurdles remain.

One should atleast build a portfolio keeping 3-4 years in mind in stocks which will return you 300-500 pct gains. For now midcaps rule but be aware of major speed breaker ahead

US Stocks jump, D-Street to follow

US Stocks as expected moved up, courtesy good earnings from Financial giant State Street. But underlying factor is Wall Street is highly oversold and looking for a reason to go up. D-Street is most likely to follow the Big brother but do not expect a big ticket rally.

Midcaps are having a ball on the street. Better economic situation, good quarterly numbers and risk apetite along with operator activity is driving the space. Avoid Realty, Banking and Auto atleast in the next 2-3 months.

We expect two big negatives to hit the street soon. One is the another round of correction on the wall street (expecting it next week) will trigger a massive sell off in Indian markets. And the second one will be from Indian Federal Reserve in the fourth week of this month in the form of a rate hike.

Though market anticipates that there will be a rate hike we expect a sharp sell off. Also we see a huge distribution happening on the street. But Nifty might try to attempt another shot at 5320-5350 levels. Global metals prices are extremely weak given the slow down in chinese demand.

We once again advice stick to quality midcap names and stay away from junkies