After a pause, the slide continues

US Markets lost all the opening gains only to close down with Dow losing 114 points. Asian markets started deep in the red today. While SGX Nifty Futures are no exception. At the time of writing SGX Nifty is down 80 points indicating another scary day in the Indian markets.

Euro is getting killed in the trading zone. And this is impacting the global economy with many fleeing to US Dollar as a safer instrument to park funds. Prices of commodities like Crude Oil and rest of the metal pack are falling like nine pins with the exception of Gold and Silver.

Indian economy we re-itereate has only one way to go and it is to the upside. But this temporary setback to the markets is just another huge buying oppurtunity.

How low we can go ??

Nifty moving down to 4850 looks inveitable in the next 30-45 days. Though 4950 acted as a big support level the last two times, the amount of short positions and global jitters might be enough to thrash the level of 4950.

If Nifty breaks 4800 then we are in for a bigger trouble we are expecting a huge sell off below 4800 which is tough to expect given the strength in the economy. One can start parking money in the market around 4800 levels.

But for now avoid Realty, Metals and especially junkie midcaps

Markets still jittery, Wall Street recovers from 180 point slide

Global Equitry Markets continued to stay on a jittery ground though majority of the markts recouped their losses on Monday. Wall Street closed flat recovering from a 180 point slide early in the morning. Dalal Street too closed above the much talked about 200-DMA. Interestingly the support around 4970-4980 which was tested twice this month continued to hold.

Euro continued to slide against global currencies, pulling global equities and commodities down. We expect Euro to stay low for the next 2-3 months. Huge short positions were built in Euro.

Coming to Indian economy there is no way except for Mr. Subba Rao to raise rates again as a measure to cool off the economy. Domestic spending is giving a major boost to Indian economy, helping to de-couple or minimize the global impact. We always said the new mantra for D-Street is domestic spending.

While major sectors like Infrastructure, Realty are still struggling, PSUs, Banks and IT sector took the cream of the rally in the last 13 months or so. Small Investors are in no two minds whether to invest or not in this tough market. But it is time to sit and corner some cash for investment in Indian Equities which offer unimaginable oppurtunity of growth in the coming 4-5 years. It is going to be a crazy and wild upmove once Europe dust settles and we are super bullish on Indian Equities. But we believe there is still time to accumulate

Midcaps ready to crash ????

Global equties are gearing up for another dreadful crash. While Asian markets are trading deep in the red, US & Europen futures continue to tumble. Singapore Nifty Futures are trading down 50 points.

We expect the markets to tumble this week too. While midcap story, which continued to be strong in the last 1 month despite of global meltdown will be hit the most in the next 1 week to 10 days. Mark these words.

Greece crisis is neglected by world markets till players switched positions. We mentioned many times to be extra catious and May will be the sell off month and here we go with a panic sell off.

It would be better for Individual investors to stay away from the markets. Bottompicking and cherrypicking are still not the right words to use in this market. Hang on and wait for the oppurtunity

Bears to call the shots. Nifty falters again at 5200 levels

Bears are back. But panic selling seen earlier might be missing this time. Nifty faltered again at 5200 levels. Support of 5136 is holding from a big fall.

US Markets sold of in the last 2 hours after managing to stay flat for majority part of the session. Retail numbers were blamed for the fall. It is indeed interesting to note from the last 5 months upmoves in the US Markets are followed by low volumes where as the downdrives are accomopanied with massive volumes.

Indian midcaps are staying afloat, courtesy liquidity flows. We clearly mentioned many times in this column that most of the feelers indicate major FIIs were short in Nifty this month but midcaps continue to survive. We expect gush of selling in midcaps soon.

Euro is looking weak every passing day and is likely to continue the same for few more months. Gold is making new highs while Crude Oil continues to drop. We believe worst is yet to come for equities and this time there will not be a storm but a smooth fall

Strong open on cards, Nifty to again meet Mr. Resistance (5200)

Indian markets are trading with extreme volatility. Yesterday is one such any trader wants to avoid unless he is on the right side. The trade was nothing short of a roller coaster. Stocks are likely to gap open to the upside on D-Street but one should clearly watch out for a Nifty level of 5200 for a break out to the upside on a closing basis.

It appears major FIIs went short in Nifty taking the feelers into consideration. The Euro aid is considered negative for Emerging markets like China, India and Brazil. As per their arguments stocks are expensive in the emerging markets.

Yesterday's IIP numbers were indeed disappointing. But one section of the analyst community argues that this will keep Mr. Subba Rao away from raising interest rates.

One should remember we are not out of woods and a trend reversal (if any) is expected today or tomorrow

Gold rises to record levels, D-Street to trade flat

Nifty above 5180 will fly others bear will rule

Yellow metal ruled the roast today closing record above $1,220 an ounce on the NYMEX. US Stocks traded flat despite of a global rout in equities. Euro uncertainity is propping up Gold to newer highs and we expect more and much more. We have a target of $2,000 in one year from now. Sounds over optimistic but it seems certain though.

RBI's move recently to purchase Gold was criticized by many but the country will be laughing to the bank in no time..

Concerns of Chinese tightening and Euro issues are still driving the markets crazy. British Hung parliament might even make UK debt situation even worse.

Equity market rally was lost in transit as global markets resumed the fall. We expect a mildly positive day today with Infrastructure Finance companies as well as fertilizer stocks are likely to do extremely well. Monsoon season is expected to be normal, much to the relief of the Fertilizer stocks which fo had a rough last year.

Markets are likely to be volatile...Speculators might be attempting to attract attention and dump stocks, One should be careful picking midcaps. Nifty 5200 appears tough nut to crack for the bulls

Consolidation, the name of the game

After clocking hefty gains across the board indices will try to consolidate the gains today but not with out a visit by Mr.Volatility. US Markets jumped, inline with global equity markets on the Euro deal. US Fed opened gates in a abnormal move, giving access to European banks the much needed liquidity.

Auto numbers yesterday continued to rule the roast a with highly impressive 39.7 pct growth, the best in the decade. One should focus on the low priced stocks in the domain like TVS Motors and Ashok Leyland. Both the stocks have already started attracting big money.

Fortis Healthcare, Asia’s biggest hospital chain, raised Rs 380 crore by selling shares to Singapore state-run investment company GIC Special Investments as part of its plans to raise Rs 3,000 crore for expansion. We are buyont on the healtcare space and recommended this stock to our subscribers as a multibagger at Rs 100 levels.

In another move which shows the power of Indian industry Sterlite Industries parent Vedanta Resources today announced it would buy UK-based Anglo American Plc’s zinc business for $1.34 billion (Rs 6,011 crore) in an all-cash deal. The acquisition substantially increases the Anil Agarwal-promoted company’s zinc and lead production capacity to 1,462 ktpa (kilo tonnes per annum) — boosting its production of lead and zinc by 37 per cent.

We expect major M&A (Mergers & Acquisitions) deals in the next one year involving Indian buyers.

Real estate, Cement counters are still looking pale while Banking undoubtedly shares the honours along with the Auto and IT pack.

How do we rate yesterday's rally ?

Yesterday's rally is like stocks retreating from the abyss but we do not believe in this rally. Stocks are likely to gain for couple more days before taking a back step. Indian midcap space is moving dangerously with vested interests playing a major role. We find lot of junk companies moving around and what is more alarming is there are takers for these companies. Stay from midcap space till more correction hits D-Street.