The current rally in stock markets in India and world over are 5 weeks old, the indices are approaching 200 DSMAs, where stiff resistance will be encountered. DFIs have become sellers already in our markets marginally. It is not a bad idea for positional traders to exist the stocks at least 50% at current levels, if one has entered markets few weeks ago or around the crucial levels of 10000(Sensex) and 3000(Nifty) suggested in the last posting. The strategy of straddle also is in profit.
The first phase of election campaign has come to an end by yesterday evening. Infosys results and reading on tech sector will be available today during market hours. Flat guidance also will be welcomed by market players. Any negative guidance or indications during the interaction with analysts will certainly affect the sentiment. Remember that Tech Sector is the largest employment creator for Indian Economy, and forex earner too. The period from now on till the election results are out by third week of May, 2009 and formation of government at the centre will be influencing the markets, where huge volatility can be expected.
Only professional traders can take advantage with strict stop loss in place. However, any deep fall in prices of Blue chip stocks shall not be missed for long term portfolio builders, as this might be the last opportunity, before markets consolidate and move up again once the government policy is clear some time before end of July, 2009 where full year budget shall be placed before parliament.
Happy trading!
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