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.

F&O Expiry to dictate terms, global markets resume downward journey

Global equity markets plunged again on Tuesday with the fall starting from Wall Street on Monday. Indian markets with F&O expiry closing on Thursday will be interesting to watch for the next 2 days. While the option "Max Pain" is predicting Nifty close to 5000 levels by thursday, global cues are not saying so.

We are not comfortable with equity markets for the next 2-3 months. Though intermediate upswings are possible in this 2-3 month period, it is better to stay away from the markets and enter at lower levels. We do not buy Analyst comments that Indian markets are ready for an upmove.

Mr. Singh's comments that he is expecting inflation to come down to 5% might not have any impact on the markets. Ambani's truce failed to give a boost to the markets. One should understand the power of global crisis instead of slow.

Patience will definitely pay but by not holding to your stocks...Do not jump and invest that markets have already tanked. More pain in the coming days....Midcaps will shed more weight due to unwinding.

June should month to do some bottom fishing

Nifty Kisses the support only to bounce with vengeance

Nifty kissed the support level of 4850 on friday only to bounce back with a rigourous pull back. Early indicators point to a gap up open today. Big brothers reached a truce over the week end over the gas deal. This will definitely add as a catalyst for the bulls.

Asian markets are trading in the green early Monday morning on positive cues from Wall Street on friday. Remember this is another relief rally and this will might go on for the next 3 days. Also F&O expiry is slated for thursday. Markets will be highly volatile.

Maxpain for options decides the closing price of Nifty. We can stay away, avoid, sell on rallies this week. The crisis is bigger than the market expected. Expect Nifty to either go range bound or slide to 4400 in the next 2-3 months...

Midcaps will see night mares soon....Get out of the midcap space...Huge unwinding is yet to happen here.

Laila hits Andhra, Bears ready t o do Bhangra

The global bear story is exactly panning out as we have been writing in this column from the last 1 month. The only thing we were still waiting to see is the midcap story getting hit and we are still confident that the sell-off will spread to midcaps and then there goes a period of consolidation.

Wall Street was massacred yesterday with the mainline indices losing in th range of 3-4 pct each. Asian markets are trading inline with the US markets on Friday morning. sliding by 2-4 pct.

Our major support level for Nifty is very likely to be tested today and we expect a strong rebound today. Given the vigorous attack one needs to see whether 4800 level holds. Below 4800 we are afraid to write that it will be massive panic and no bounce in sight.

We were wrong as we were bearish from 3 to 4 months but one needs to have patience in these markets. We have always written markets are stretchy and sketchy. Also Indian markets including every TV channel or any website failed to talk about Soverign debt issues. We raised the same in April and mentioned we will be taking a bigger hit in May.

This is just a temporary but much needed setback (healthy correction) for Indian equities. Do not rush to buy if equities appear cheap as you will get a better price soon

Nifty breaks the support, eyeing 4800 levels

Global equity markets continued to tumble with yesterday's show extremely volatile on the wall street with Bears hitting the winning runs. Indian markets tanked big time yesterday and infact D-Street lost more than any other Asian market yesterday. At the time of writing asian markets are trading mixed.

We expect minor recovery in Indian markets today. With Nifty breaking the 200 DMA traders jumped to the other side of the boat going short on Nifty. Open Interest increased massively. Any small positive trigger during this period might trigger a mamouth rally but all odds favour bears for the time being. We expect 4800 to hold on at any cost. But given the vigourous bear attack one should even wait whether the support holds before jumping in.

Stay away from equities at least for the next fortnight. Midcap bloodbath is yet to begin. Visitors of this column might have witnessed our bearish take from the last one month. We have confidently written this time "Sell in May" will work. High beta stocks like Aban got a stick though the Oil spil is used as an excuse.

It is time to pool Mr.Cash and wait for the right oppurtunity

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