Today, we expect a cautious to slightly weaker start. US stocks fell sharply overnight and Asian markets are down this morning. Do not go overboard and start loading up aggressively as things could turn ugly again. Any rise should be utilised to lighten one's position, especially from weak counters.The bulls and bears keep jumping lanes and sometimes signals.
A sharper than expected fall in inflation has once again raised hopes of another round of measures, both monetary as well as fiscal, to revive economic growth. As a result, the market rallied on Thursday, with the Sensex ending above 10,000 for the first time in over a month while the Nifty finished above 3,000. Market breadth was strongly positive while traded volume and turnover were too sharply higher. However, foreign funds and local institutions were net sellers, raising some suspicion over the source of the heavy buying.There are still some doubts over the revival in sentiment, as credit markets are jittery and risk aversion rules the roost.
The Indian economy is also going through a bit of a rough patch. The only silver lining is a sharp fall in inflation. Recently, the market has ignored a slew of bad news and has rallied. It has been pretty resilient in the face of negative news. However, the euphoria may not last for longer.
A sharper than expected fall in inflation has once again raised hopes of another round of measures, both monetary as well as fiscal, to revive economic growth. As a result, the market rallied on Thursday, with the Sensex ending above 10,000 for the first time in over a month while the Nifty finished above 3,000. Market breadth was strongly positive while traded volume and turnover were too sharply higher. However, foreign funds and local institutions were net sellers, raising some suspicion over the source of the heavy buying.There are still some doubts over the revival in sentiment, as credit markets are jittery and risk aversion rules the roost.
The Indian economy is also going through a bit of a rough patch. The only silver lining is a sharp fall in inflation. Recently, the market has ignored a slew of bad news and has rallied. It has been pretty resilient in the face of negative news. However, the euphoria may not last for longer.
