Markets Rally, treading with Caution

OUTLOOK: CAUTIOUSLY POSITIVE

The rise in the markets has come as relief to many, and surprise to some (including me...)! The surprise has come as the outlook for the world economy is bleak and any rally at this point makes little sense. However something interesting seems to have happened. . . whereas the world markets continue their journey downwards with Dow breaking the 8000 barrier on the downside, our markets rallied!!! Does this mean we have started to decouple from the world markets? Cant really say but it will happen one day for sure, with enough money coming from domestic market rather than FII's. However I am not too sure whether that is going to happen in the near future. . .

So where do we go from here. The technicals have become positive. . .so its time to be long. . .but I have one fear, the markets when they head down they come down with heavy force, so I am not fully convinced with taking positions in F&O. Hence it might not be a bad idea to play little by little in the cash market for a 20-30% kind of a trade, with some good stocks. Yesterday I bought some TISCO, RELCAP, GE SHIPPING for a 20% kind of a trade. . .lets see. . .but one will have to be nimble footed if and when the markets trace back. . .till then enjoy the ride I guess. . .