Epaper
Wall Street tanked on weak regional manufacturing data. Dow Jones ended the day at 12,284.30 down by 142 points while Nasdaq is down by 27.32 points to 2,299.78. This is undoubtedly one of the toughest fights between the bull and the bear cartels witnessed in the last 2-3 years on the wall street. This year is make or break for the US Markets as the sound of recession increased by many decibels. And we believe the technical levels of 12,750(resistance) and 11,940(support) for Dow Jones will take the wall street to one side of the boat.
Japanese markets followed the big brother with Nikkei taking a initial plunge of 305.76 points at 13,382.52. We are more confident about the Japanese economy than the US economy given the recent GDP surprise.
Indian Markets have never witnessed this kind of drag phase in the last 4 years. Not to say there are 3-4 thousand point plunges in the Sensex but the recoveries are smart enough barring this time. It is a million rupees question for Indian investors whether to get out of stocks or stay invested in the market. We believe there is absolutely no point in getting out of the market and we strongly take this as another prolonged bear cycle with in the bull phase. Stay invested but with more patience as things cannot turn overnight.
Technology stocks as expected rejoiced yesterday on weak rupee. Markets are likely to open down a big way but recovery from the lows is a certainity. Sensex is likely to lose somewhere between 200-300 points unless pre-budget rally sets in.
Government in an unprecedented move approved a fresh Rs 500 crore assistance to help exporters after a Rs 300 crores alloted recently. Textiles and farm product related companies are likely to benefit immensely from the forthcoming budget. Infrastructure and logistics are the other sectors to watch for in the budget.
Definitely not the right markets to trade but definitely right time for a long term investment. Have a great day.
— Review written by Research Team @ www.indiabears.com
