May 2012

my take for this week ....

I had warned last week that something is going to snap somewhere …. And it did …. on Friday ….

We had a 100 point downtick and similar cut on US indices as well… which means normal short covering bounce will be missing on Monday …. In fact we will drift further down towards 5050 which so many technical analysts are pointing as a major major support …..

Rupee kissed 54 before RBI intervened aggressively and this is actually causing lot of discomfort to investing community abroad. The possibility of another 5 % drift in Rupee and 5 % cut in Indices means actually a 10 % haircut for FII which difficult to recoup in a current economic climate globally.

THAT MEANS WHATEVER UPSIDE THAT WAS CONSIDERED AFTER GAAR CLARIFICATIONS ON 8^TH IS ALREADY NULLIFIED.

I HOPE YOU HAVE ALREADY STARTED CHERRY PICKING THE STOCKS OF YOUR CHOICE AS VALUATIONS ARE TURNING ATTRACTIVE.

Let us hope that we will have more clarity about GAAR and even political air may somewhat clear when presidential candidate will be announced by UPA.

world indices weekly trading levels ....

commodities weekly trading levels ....