Week Ahead: Long term trend under pressure (Business Standard 28th Jan 2008)
A massive downtrend was triggered by around $4 billion worth of FII sales and margin calls. There was a marginal recovery in the last two sessions but the long-term bull market may have reversed.
The Nifty hit a low of 4448 before pulling back to 5383 with a week-on-week loss of 5.81 per cent. The Sensex bottomed at 15332 before closing at 18361 for a weekly loss of 3.42 per cent. The Defty was down 5.81 per cent as the rupee reacted to massive outflows.
The Bank Nifty was the only index that gained, if marginally. Breadth was poor and the volumes on the recovery were much lower than on the sell-off. The Nifty Junior was down 6.95 per cent. The mid-caps suffered most and lost 9.25 per cent. More
Markets likely to remain choppy (The Economic Times 28th Jan 2008)Global news flow will play a key role in determining the direction of the equity market this week. Events, like the Reserve Bank of India (RBI) meet on Tuesday and the F&O expiry on Thursday, will also play a crucial role and as such most market players expect a volatile session going forward. Broking houses are advising their clients to stick to frontline stocks, even as large players appear reluctant to take fresh positions. While last week did witness some wild swing in the indices, analysts are not yet convinced that the worst is over. A further fall in the range of 500-1,000 points is what most experts are betting on. “To me, the worst is over. Considering Friday’s run up, I guess there could be a further correction of about 500 points,” said India Infoline vice-president (research) Amar Ambani. “Market would be a bit unstable in the near term. Investors should start investing in large-cap stocks now,” he added. More
Sensex may bounce back(The Hindu Business Line 28th Jan 2008)The gut-wrenching correction on Dalal Street in the last two weeks did not result in a single broker-level default. The risk management system stood rock solid despite severe problem in electronic transfer of funds. Maybe, large number broking houses had faced acute liquidity crunch, at least for three consecutive days. But, there was no systemic crisis.
The benchmark index and a few other indices have returned to recovery trail too. This week, market is likely to recover further. It may not be surprising if the Sensex bounces back by another 1,000 to 1,500 points.
So, it’s the global financial market and the excesses in the local market that had caused the savage correction. Soon everything would perhaps be hunky dory. Excesses are dead. Long live excesses! More
A massive downtrend was triggered by around $4 billion worth of FII sales and margin calls. There was a marginal recovery in the last two sessions but the long-term bull market may have reversed.
The Nifty hit a low of 4448 before pulling back to 5383 with a week-on-week loss of 5.81 per cent. The Sensex bottomed at 15332 before closing at 18361 for a weekly loss of 3.42 per cent. The Defty was down 5.81 per cent as the rupee reacted to massive outflows.
The Bank Nifty was the only index that gained, if marginally. Breadth was poor and the volumes on the recovery were much lower than on the sell-off. The Nifty Junior was down 6.95 per cent. The mid-caps suffered most and lost 9.25 per cent. More
Markets likely to remain choppy (The Economic Times 28th Jan 2008)Global news flow will play a key role in determining the direction of the equity market this week. Events, like the Reserve Bank of India (RBI) meet on Tuesday and the F&O expiry on Thursday, will also play a crucial role and as such most market players expect a volatile session going forward. Broking houses are advising their clients to stick to frontline stocks, even as large players appear reluctant to take fresh positions. While last week did witness some wild swing in the indices, analysts are not yet convinced that the worst is over. A further fall in the range of 500-1,000 points is what most experts are betting on. “To me, the worst is over. Considering Friday’s run up, I guess there could be a further correction of about 500 points,” said India Infoline vice-president (research) Amar Ambani. “Market would be a bit unstable in the near term. Investors should start investing in large-cap stocks now,” he added. More
Sensex may bounce back(The Hindu Business Line 28th Jan 2008)The gut-wrenching correction on Dalal Street in the last two weeks did not result in a single broker-level default. The risk management system stood rock solid despite severe problem in electronic transfer of funds. Maybe, large number broking houses had faced acute liquidity crunch, at least for three consecutive days. But, there was no systemic crisis.
The benchmark index and a few other indices have returned to recovery trail too. This week, market is likely to recover further. It may not be surprising if the Sensex bounces back by another 1,000 to 1,500 points.
So, it’s the global financial market and the excesses in the local market that had caused the savage correction. Soon everything would perhaps be hunky dory. Excesses are dead. Long live excesses! More
Comments