Today, for the time being the bulls are all set to continue the momentum. The biggest factor is the positive comments from the US Treasury Department who may step in and bail out the troubled automakers after a US$14bn bill collapsed in the Senate. Asian markets too have opened sharply higher this morning.The lessons in the past make not help one profit given the wild swings the market has been witnessing. The least you can do is prevent losses. Last week, the indices moved ahead against all odds to finish the week higher by 8%. Bulls ignored the dismal IIP numbers, which fell into the negative territory for the first time.
The coming week will again dance to the global market music. On the domestic front there will be leaks of advance tax numbers. More focus would be on a Fed meet likely next week and industrial production data in the US which is expected to be negative.
Remain guarded even though the ongoing rally may prompt traders to reckon that the worst is near an end. Put higher trading stop losses and ride the brief rally for now.
