Pre Market Commentary...

Today, we see another day of stock taking and consolidation. Global cues too are indecisive. Our advice is don’t get too euphoric. Avoid undue risks and enjoy the long weekend. The upcoming earnings season should provide an opportunity to assess and evaluate. The advance tax numbers do point to a healthy states of affairs for India Inc over the year-ago period. But, in most cases this could be a result of cost cutting and not due to any meaningful gains on the demand side. That will take some more time to materialise. As always there will be surprises, both negative and positive. So, brace yourself for some volatility in the near term at least.

We’ve bounced back from the bear market lows to reclaim a milestone. But, we are still a long way away from the all-time highs. The question now is how would the journey ahead be? There are no easy answers, though on the whole, the mood seems to be upbeat. The real test for all will be when the steroid (stimulus) is gradually withdrawn. For now, everything looks bright and beautiful so may as well enjoy it.

All the bad news seems to have been discounted and the concerns are being overlooked temporarily. The fact is we went down hard and have rebounded. The worry is whether the ascent can continue at the same pace without major reversals. Stocks could gain further ground if the pace of liquidity gush persists. Among the potential headwinds are: inflation, interest rates, uncertainty over the external environment and lofty valuations.

GOOD LUCK! Sit on CASH!, always remember,

"Don't focus on making money;

focus on protecting what you have."

Happy Trading!!