Market may turn Volatile

Last two trading session gave a clear direction that market knows only one direction to move and that is north ward.

Market closed at a all time high to close at 8380, which was a clear sign of its movement towards magic figure of 8500. Over the weekend we expected markets to move past the magic figure this week after some consolidation in first 2-3 days of the week. Some cautiousness may emerge from media reports today about FM smelling some scam or insider trading in this student, unprecedented rise in market. This may surly create panic in small investors who will try to offload today. Big players may also refrain from taking fresh positions book profits at this level.

The only fear that I have today is consolidation and profit booking should not turn out into a major correction.

Hold or Prefer Moveing to Cash

Upward move of 10 trading sessions came to holt yesteraday, when in a very volitile session morkets moved in a range of 80-90 points and finally closed just in red.

Volumes sore to more then 32000 Corers but the market breather was negative. Number of declining stock was far more then number of accending stocks.

Mumbai high court will decide on RIL demerger plans on 16th Sep. This will act as a new trigger for the markets.

There is no clear direction comming out now. A correction small/big is required for markets to shot up again ahead of expire of deravitives and result season. We adivice you to either hold you investments or move to cash where you are sitting on huge profits. Wait for couple of days to get more visiablity on direction which market is heading towards.

There are no picks of the day for today. Just a small piece of advice “Wait and Watch”.

Long awaited Correction is here.

As discussed in my earlier post, correction was inevitable, only thing it came latter then expected. BSE Sensex has lost around 200 points in three trading session after touching a lifetime high of 7800+.

For all those who fee that correction will is over, my word or caution is to wait for 2-3 days more. I expect a further correction of around 100 points. Markets are likely to bounce back on Friday or next Monday.

Last three sessions have been highly volatile. Though today’s drop was much lower (10 points), market fluctuated for around 127 Points. This shows high volatility. Such volatility is issue of high concern as it does not give definite trend.

A consolidation is expected to take place in the market at this juncture. Even in this consolidation phase select stock like Bharthi, Aditya Birla group companies etc.

Pick for today Venkat Pharma

Buy Venkat Pharma @ 62 à 8/12 Weeks. Venkat Pharma board has approved rights issue and the funds raised will be used for expansion. Accumulate on deeps.

Correction is must now.

After BSE Sensex yesterday, today it was Nifty's turn to have a life time high closing.

This is for the second time in past one month that the Sensex is facing resistance at 7350 levels. Resistance at 7350 is too high and sensex may not be able to break out even this time. If sensex closes above 7350 tomorrow the it may pass 7450 by next weekend. But if the closing is below 7350 tomorrow then long due correction will start. This correction may take sensex to around 7100-7150 in levels few session or even lower.

Post correction fresh rally will take sensex to 7500+ level. Partial profit booking is advised in all profit making positions. Start buying on dip below 7200.

Again after a long time.

I have not been blogging on Prakash's World regularly now a days, but this does not mean that I have stoped monitoring markets.

Since my last bolg on 26th May 2005 BSE sensex has jumped from 6670 to 7347.

Last week Infosys declared results that where above there guidelines and below market expectation and the market reacted negatively. It seamed as if long awaited correction has started, but India story does not seam to stop here.

After some correction over last week, today sensex rallied by 75 points and hit a life time closing high. Today’s jump was on back of strong numbers posted by TCS. TCS numbers had a positive impact on Infosys also. Positive news from TCS impacting Infosys positively is indication of changing market condition. Which may be more clear in months to come. Within a year of listing TCS, India’s largest IT service provider has today shown that it has the power to drive the market.

For years now Infosys results have driven market sentiments and today TCS results has helped Infy regain its losses after Infosys results where declared on 12th this month. Next few Quarter will decide who is the real driver of the market TCS / Infosys.

From todays blog I am againg starting with my recomadation.

Pick for today MTZ polyfilms

Buy MTZ polyfilms @ 8.25 / 8.50 --> 8/10 Weeks view.

Back again after a long time

Markets have been in Blue for 6th concecutive day. This is a clear indiacation of new bulliesh phase in the market.
Today blue chips witnessed a surge in the latter part of trading as short covering in the futures & options segment triggered rebound on the bourses in the latter part of the trading session today.

The 30-share BSE Sensex jumped 73 points or 1.1% to 6,670.78 - its highest level in more than two months since mid-March 2005.

The midcap index managed to close above 3000 levels. 3000 now seams to be a good resistance level for midcap space.

After a good earning session the next trigger for the market is monsoon. The weather office has forecast this year's monsoon rains, crucial for the economy, to be normal at 98% of the long-period average.

Market volatile, but fundamentally strong.

Hi all,
This is after long- long time. Since my last blog, markets have kissed 6600 levels twice and have seen consolidation. There have been times when markets have jumped by 400+ points in 5-6 trading session and have dropped at the same rate. But each time there have been correction they have been for good.

First forenight of Jan 2005 was full of panic and downside in the market. Most of the small investor's who offloaded there portfolios towards the end would love to forget the period like a bad dream. But forget such rich experiences will hit you hard again in near future.

India growth story is still in middle and will continue for few more years. FII will keep on investing in Indian markets and they will act a main driving force. But then they are not here for charity, they are here for business. And business means profits. They will book profits from time-to-time and reinvest. They may change there sectorial preferences but will not move funds out of India. Instead you will see more and more FII funds being pumped into Indian economy in coming days.

Till budget and even post budget market is likely to be volatile and moving between 6200 - 6600 levels. A closing past 6700 will start a new round of bull run that will take the markets above 7000-7200 levels. This is likely somewhere during April end /may and will depend upon good monsoon.

My advice is to stay invested. Take fresh positions on every decline of 300-400 points into stock that are fundamentally strong and have lost equally to the index. And sell on rise of 300-400 points. Do not wait for peaks and bottom as you never know when you hit them and a reverse trend starts.