"This week and October month were quite eventful and historic for our markets and as well as global markets. Our indices have closed at all time highs on 31.10.2007, inspite of heavy volatility swings during the month, taking CRR hike in their stride, owing to good corporate performance for Q2 and assuring better performance in future. DIIs and Retail are participating in a big way in the absence of PN players, who are banned since 26th october, 2007. November promises to be another good month, especially Diwali "New year" being observed as an auspicious occasion by many players and investors and indices shall continue to post gains till 9th Diwali, on sentiment basis.
US FOMC meeting last night, has cut the Fed interest and the discount rates by 25 basis points as anticipated, however, indicated that there will not be further cuts in December meeting. Crude touching US $ 96 and slowing of home sales market, are a cause of concern for US economy. We are in for times of huge volatility as indices are trading at all time highs, daily volumes are averaging more than a lakh crores, one has to exercise caution in trading, as stop losses get triggered on either side easily. RBI and Finance Ministry are having the problem of huge capital flows on hand, raising crude prices are making oil marketing companies to bleed, raise in petrol prices is being put on hold as it would push inflation and input costs.
Technically Nifty can go upto 6550 if 5614 is held on weakness during the month. Any weakness is a buying opportunity in quality blue chips which have proved their performance in this quarter for long term accumulation.
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