Pre Open Thoughts: Disciplined Strategy!!! Ø A mid-week break has brought in renewed energy and inspiration. All I would say is trade the market, not the money…if you exercise your strategy with discipline, the money will follow. Well that’s what comes to my mind this morning as the drift in markets in last couple of weeks has forced market participants to give a rethink to their strategy on domestic markets. A combination of domestic and overseas headwinds continues to play havoc with the markets’ sentiment. The political uncertainty on reforms too will continue to impact market movement. Ø Some reports suggests that a high-level panel headed by Economic Affairs Secretary Arvind Mayaram will finalize by the month end its report on the definition of FDI and FII, aimed at removing ambiguity on the two types of foreign investment. Ø Meanwhile economists may not be all that gung-ho about the current state of the Indian economy, but our well known Finance Minister thinks the pessimism is overdone and growth should pick up from here on. According to him, all is well with the Indian economy. One should ‘Bear’ in mind the problems of the past will continue to haunt us for a while before we see definite signs of improvement. Ø The start is likely to be positive in sync with Asian markets. In some global news to track down the European Central Bank left interest rates unchanged on Wednesday, holding off any fresh policy action for now while it waits to see whether a fragile euro zone recovery strengthens.US & European indices Closed negative yesterday. Ø On home soil the indices just about managed to hold on to support levels of 5750 on Nifty. So where do we go from here? Overall the market is again turning as unpredictable and the trend is likely to continue today. The bad news apart, not many would have predicted a sharp and swift turnaround in sentiment. Ø On nifty 5950 now remains to be resistance level on break of which we might see a decent amount of short squeeze which may also help Nifty to gain momentum thereon and accelerate to recent highs soon. Ø The FIIs were net sellers of Rs1.06bn in the cash segment on Tuesday, while the domestic institutional investors (DIIs) were net buyers of Rs1.25bn, as per the provisional figures released by the NSE. Some reports suggests that investors have put in nearly Rs 24,000 crore in various mutual funds in August after pulling out money from such schemes in the preceding two months.
Posted on: Thu, 03 Oct 2013 04:23:37 +0000