Worse has hit us!!!

Outlook : Negative

The upmoves are coming when least expected and downmoves are strong and severe wiping off the gains made in no time. . .and it does not look good. I had in my post yesterday that charts are pointing that some indicators are positive yet I would not advocate F&O position as the downmoves are very swift. . .now the realty has hit us. . . all this while the rally was looking very very unconvincing, and now all that has ended. . . the sharp downmove today is a precursor for worse things to come. . . I wont be surprised if we break the all time lows set in October. Now I would basically look at 2550 on the NIFTY and 8000-8500 on the sensex. . .if that breaks then NIFTY can be headed much much lower. . . I am also stuck with some cash positions but its not too much of a worry as these are cash positions so one can hold on. . . this was the precise reason why I was not venturing into going long on the futures ( though I covered my shorts a bit too early :( )

Well lets hope for the best, but very frankly there is nothing to look forward to . . . hmmm except gold obviously :) ( Do read up my article on gold, i wrote on Jan 31. )

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. . .