A bounce back is on the cards at start, thanks largely to a late session rebound on Wall Street. But then remember, bouncing is more like crashing….except you get to do it over and over again. Asian markets are mostly positive, barring the Kospi in Seoul, which is still reeling under the geopolitical tension. The European markets failed to benefit from the recovery in US stocks and ended sharply lower. In fact, markets in Italy, Portugal and Ireland joined Spain and Greece in bear-market territory. The FTSE 100 closed below 5,000.
German finance ministry is reportedly proposing extending the naked short-selling ban to include all German-listed stocks. The bill is due to be discussed next week. Italy has joined Europe's austerity club with deep spending cuts.
What this means is that unknown fears remain and randomness is the order of the day. Volatility is very high and so are uncertainties and risks. With the F&O expiry a day away it only gets wilder. Any sharp snap-back should be used to lighten your mental burden rather than adding positions.
Amidst all the gloom and doom, we can comfort ourselves with the fact that India’s macro-economic outlook is pretty sound though monsoon needs to be watched closely. Latest GDP data, which will be out on Monday will offer some more inputs of ground realities.
JOIN US!!
Send SMS for "STUDY" on 09825677777