Mkt View

Hi friends,

As mentioned a number of times before the markets are seeing a combination of two events at one point of time.There is an element of classical trading involved in the current market movement.Buy low and sell high.Wonder how many traders are able to follow it in current market environment.The market is not breaking January lows and at the same time the market is seeing good amount of selling at higher levels.If S&P the credit rating agency is to be believed then the worst of sub prime writedown is over.I wonder how many analysts will be able to believe it when at the first place the agency was unable to expect the extent of the sub-prime mortgage write downs.I believe that the current market scenario the only one thing that will work in markets favor will be the pessimism observed in trading circles.I will love to go selectively long then being outright short above 4400. At the same time the only way for traders to survive is o carry minimal overnight positions.There is a distinct pattern that is observed in Nifty.Every Big move is followed by a move in the other direction the very next day.Intra day factors to watch out for will be inflation figures.One more event that the market will watch out for will be the expected inclusion of large farmers in the debt waiver scheme as requested by a Young congress parliamentarian .H has requested the finance minister to include regions that have been prone to successive droughts and increase the cu off date.If the suggestions are accepted (which we believe they will be) markets wont be kind to the Finance minister.We expect clarity to emerge after 5.00 pm today.The best way to trade is to make sure that you capital is preserved.

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