NIFTY ends down on a volatile day

Yesterday was a volatile day and NIFTY ended in red after making a dash at 6000. Usually what happens on such days is that there is a lot of euphoria in the beginning of session. Everyone starts to celebrate the 6000 milestone. Seeing the stocks going up at a rapid pace, many intra day traders can’t resist themselves and just jump in!
This is what happenned when lot of people jumped in seeing those gigantic moves. The smart traders took advantage of this euphoria and dumped stocks at higher levels. So when suddenly markets started coming down, these “euphoric” people had to pack their bags and cut their positions at the end of the day. This caused a larger than anticipated fall in the end.

The markets remain on an uptrend as long as 5700 levels are maintained. Many market participants shall be using the falls to accumulate good stocks. Somehow people have to the conclusion that global factors don’t affect India in a big way. It needs to be seen as to what effect will US slowdown have on India.US in recession and India growing at 10%- to me this looks very unlikely! But this is certainly going to dampen the sentiment on IT.

I am just betting big on commodities like Oil and Gold. There is lots of money that can be made outside the world of stock markets. These times require an urgent need to churn your portfolio and change your asset allocations. I feel this is what is happening at a global level which is causing so much volatility.