Mkt View

Hi Friends,
The global Financial storm refuses to relent and is becoming more and more aggressive with each passing day.We are now facing a full fledged recession and it will be a recession not limited to just usa.The under-performance of finance stocks in India can be attributed to the global sell off in the equity markets.I have a strong belief that in coming two to three quarters we might see a big consolidation in global financial mart.There might be some big financial corporations that wont survive and we will see them getting merged with there counterparts.It will be on a global scale and scene.Coming back to the Indian markets the selling pressure witnessed yesterday makes the scene scary for small cap and momentum stocks technically.There was a good amount of buying witnessed in these stocks in last three days.Everything got sold off yesterday.Technically we are oscillating between the 100 dma and the 200 dma.I believe with the current state of affairs it might just be difficult for our markets to hold on the 200 dma.If only we recover above 200 dma then a fall can be best forgotten.Else its time to be highly cautious.Technically some of the finance and brokerage stocks are showing breakdowns.Stocks like India infoline,Motilal oswal and Reliance capital.Have lost nearly 40-60% from there peak levels.There is a talk of a real estate correction in NCR region.Although the news reports are unconfirmed,Charts suggest that it might be correct.I will say its ripe time to stay away till 5521 is not crossed.Global markets are near supports and they should now witness sideline move or strict correction.Markets that are closed due to chinese new year might witness good correction once they reopen which might trigger a second round of global selloff breaking the previous lows.
Nifty supports 5044-5012
Have a Great Trading Day.