What a out performance of Indian stock markets!!!!!!! Everyone on the street was caught unware of what was coming on 15.09.2009, thanks to the robust advance tax(income tax) payment, known from sources, gave phillip as relentless buying by all round participation, lead for posting new 52 week highs on both Sensex and Nifty.
US markets too have closed with gains overnight and SGX Nifty is indicating positive opening for our markets. No doubt the abundance of liquidity chasing Indian Blue Chips is making the indices move upward, as every dip/weakness is immeditely being bought.
The mute question is whether this bullish ness continues like what we have seen in 2007???? The answer is strong No according to me, as the economic indicators do not support this time around. The irony is one cannot be too bearish also at the current juncture, and certainly this is not the time or level at which new entrants to begin port folio building.
One should be cautious when consensus builds up in one direction, because trend reversal takes place when every one is 'off guard'.
In my view increase in volatility shall be first sign of big fight to unfold between bulls and bears. Watch for indications.
Trend for the Day: Nifty might trade in a band of 4840 to 4940 today.
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