Home > Market View > Where are markets headed post correction ?

Where are markets headed post correction ?

Sunday, November 29, 2009 Leave a comment Go to comments

Friday turned out to be a nasty day for the markets after global credit problems resurfaced in Dubai. In this world of global finance, such problems can easily cause havoc.What seemed irrational was the fact that all the companies that are doing business in Dubai or Middle East were punished on the stock markets. This is what’s known as fear! Is it correct to assume that all companies that have receivables from Dubai will see defaults?

So is there any way to guard against such events? It is very difficult as one cannot monitor economies of so many countries! The only way to operate in such environment is to have proper risk management strategy. Otherwise, you will never know when death strikes!

If we didn’t have this event, things were looking bright for the bulls and they were on their way to take the markets to 5400-5500. Now things look a little muddled in the short term. It will be interesting to see if the bulls renew the buying or just step away from the markets.

My sense is that bulls would still like to play for the 5400-5500 levels on the NIFTY by Dec- Jan .They need to take the NIFTY back above the 5000 levels so that momentum buying emerges again.

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Categories: Market View
  1. bruce
    Monday, November 30, 2009 at 8:24 pm

    Hello

    Could u please share your view on “GUJARAT NRE COKE” please?

    bought @69 hold or sell?

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