Today, we see a cautious opening after Friday's big rally. Also, Asian markets are down 1-2% this morning. The Japanese markets are shut today. We expect the market to be more sideways and choppy. The downside may be capped unless the economic reports (global and local) turn out to be really awful. Any other negative news from global markets could add pressure. The crisis of confidence is still in place, as global fund flows are drying up in the face of the massive de-leveraging process.
The bulls may have enjoyed the strong bounce back on Friday after a seven-day rout. Don’t accept it as yet though we could see a few hundred point gains intra-week for the Nifty. This week may be a bit heavy in terms of news flow. Trading may be a lot more volatile given the F&O expiry on Thursday and anxiety over the Q2 GDP data, to be unveiled on Friday.
The bulls may have enjoyed the strong bounce back on Friday after a seven-day rout. Don’t accept it as yet though we could see a few hundred point gains intra-week for the Nifty. This week may be a bit heavy in terms of news flow. Trading may be a lot more volatile given the F&O expiry on Thursday and anxiety over the Q2 GDP data, to be unveiled on Friday.
Though stocks may have fallen to attractive levels, the pain in the real economy could last much longer than one can imagine. Long-term investors can, however can dabble in stocks from time to time (and take home money in the short term too). Opportunities to buy will be many over the next few months.
