Bearish winds blowing slowly

While every one is bullish on the street, slowly we see a bearish wind blowing in global equity markets and India is no exception. If global correction is on cards, we re-iterate India will be a big loser.

On the other hand if world goes flat Indian economy will be flying high. We agree on the decoupling theory but the quarterly numbers are mixed and failed to propel the markets. D-Street again failed to break out from the trading range. Keep caution till then

Another flat day expected

F&O expiry is weighing on Indian marklets with the max pain pegging Nifty at 5400. Midcaps continued to fire and yesterday's clear winner was V-Guard. Stock jumped on huge volumes.

US Markets too continued to trade flat. Economic data continued to pour in pretty weak in th US. Watch out for a melt down soon. But for now corporate profits are running the show.

Hanging on....

Rate hike has no impact on the markets and we do not see any soon. We expected bears might take a shot at the hike, given the expiry this week.US Markets closed flat while rest of asia is trading mixed.

These are undoubtedly confusing times for investors as Indian markets were already placed on a strong wicket but lacking momentm. Reliance Industries might give the much needed boost for the markets. Retail push in Indian markets too is a big miss though F&O volumes are high

European stress test fizzles outm, markets to move higher

European bank stress test fizzled out on friday and only fewer than expected banks failed in the tests. While there is a strong critisicm that the tests were not strong enough, bulls have a different idea when it comes to equity markets. After dilly dallying for 2 hours US Markets finally decided to go up as the risk reduced, propelled by strong numbers from major companies.

Indian market on the is on a song and is likely to continue the momentum. One should be wary of RBI meet and Reliance Industries number with more emphasis on the first one.

Midcaps are doing extremely well..We expect the momentum to continue. But here is the catch. As far as US Markets are concerned one should for 2 more days before jumping to a conclusion. Indian markets focus on RBI though 25 basis point cut is on expected lines it might create havoc in the market

Nifty breaks out on global positives

Nifty finally broke the resistance levels yesterday and is looking towards another landmark 5500 to be breached. After staying put for some time Indian markets started decoupling from the global markets in the last few weeks.

Realty majors, Oil & Gas along with Reliance should contribute to this rally. It is really tough given the situation for a break away rally but nothing is impossible given India's branding across the globe.

Midcaps especially stocks like Bhagawati Banquets are running way above fundamentals. Unless there is any acquisition news flow it is better to stay away from such counters. And avoid any SMS or email circulation about these small cap junk stocks

Bernanke's comments triggers a fall on W' Street

The Federal Reserve would take action if necessary to keep the economic recovery on track, Chairman Ben S. Bernanke said Wednesday, even as he asserted that he expects the expansion to continue.Bernanke and his Fed colleagues "recognize that the economic outlook remains unusually uncertain," he told the Senate banking committee. "We remain prepared to take further policy actions as needed to foster a return to full utilization of our nation's productive potential in a context of price stability."

The reason for giving weightage for his comments being the pinion rider of the world's largest economy, it clearly shows the country is not out of woods and the outlook remains highly uncertain. Indian economy is doing good with decoupling from the western world alreay in process.

Midcaps are ruling the roast on the markets. Again we caution against all dummy stocks and operator driven counters.

Positive start on cards

Indian benchmark Indices are likely to gap up on the back of positive overseas cues. Gadget leader Apple declared street beating numbers after market closed in the US boosting Asian tech stocks.

Indian markets are on a very dangerous wicket with lack of volumes and the much needed push to crack the ranged trade in the last one week. Though midcaps are doing extremely well, it is time a sector takes leadership and we believe Oil & Gas along with Reliance might lead the rally in the next leg. We are not sure and infact certain the rally might get delayed for a month or two. Investors can start picking up stocks delivering good numbers slowly

Only Below 5320 Bears enter the market