Some stability appears on the horizon with most global markets posting gains overnight and Asian markets too holding their ground. The bulls failed to hold on to their gains on Thursday amid continuing worries about the impact of global meltdown on the local market. The rally also lacked conviction due to the lower traded volumes. This probably implies that it was more of a short covering than fresh buying. The market breadth was also marginally positive. It would be wise to wait for the current weak phase to pass before taking a fresh call. Avoid fresh long positions.
The outlook for today is positive at open, but avoid fresh buying unless you are taking position for the long term. Defensive stocks like HLL and potential doublers like RPL could be accumulated for the long haul.
Though, the subprime woes in the US and trouble in the credit markets are unlikely to have a direct bearing on India, indirectly, it may affect foreign inflows. So, the writing is on the wall: Keep a close watch on the trend in FII inflows. A sharp reversal in fund flows to emerging markets could lead to a fresh carnage worldwide. Though India is insulated due to its local-centric economy, the growing integration with the global markets will ensure some pain in the short term.
Players with weak hearts and equally weak portfolio should be careful while long-term investors should cash in on the opportunity. Give yourself a much needed break after a rollercoaster ride. In fact, the movie 'Cash' opens in theaters today. It is a story of a bunch of thieves who pull off a daring heist involving priceless diamonds. As investors, take your time identifying priceless stocks you could add to your portfolio. Avoid the 'daring' part for the time being.
Car makers like Maruti, Tata Motors and M&M may come under some pressure amid reports that the Urban Development Ministry has sought a special tax on four-wheelers, citing lack of adequate infrastructure. Deccan Aviation will also be in action as SEBI has sought details on funding from the UB Group. Petronet LNG is also likely to be in focus as the company will move the Supreme Court to vacate the stay given by the Ahmedabad High Court restraining it from adopting a new pricing formula. TV18 could also gain amid reports that it proposes to buy 50% in MTV Networks India for Rs2bn.
2 comments:
Very good post, I was really searching for this topic, as I wanted this topic to understand completely and it is also very rare in internet, that is why it was very difficult to understand.
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Very good post, I was really searching for this topic, as I wanted this topic to understand completely and it is also very rare in internet, that is why it was very difficult to understand.
Thank you for sharing this.
regards:
share tips
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