October IIP (index of industrial production) Numbers, not Encouraging

OUTLOOK : SLIGHTLY POSITIVE

In my previous post, I had written that we are staring at a short term trend reversal and the upmove for the markets look imminent. Well we have been able to hold our own and move up smartly from the 8500 levels yet again. Now the 8500 levels on the sensex forms a support of sorts and till that is taken out convincingly on a closing basis we don't have much to be worried about. The trend is almost about to be positive, though we will have to trade above the current levels for some more days for that to happen convincingly. For e.g. in the diagram you can see that we are very close to the zero mark, once we cross that zero mark we would be in the positive territory...The only negative in all of this is that the IIP nos have come negative in 15 years!!! October IIP nos have come at -0.4% which is a shocker considering that India is one of the fastest growing economies in the world...One can only hope that it is not a harbinger of things to come and the impact on real economy do not start to reflect in terms of slowdown or even worse a recession....