October 2012
Trading levels 29th October / 2nd November 2012
Last week was another weak – although truncated – was a weak with a very tight range - of just about 80 points. Now it is becoming agonizing to watch the screen where index just does not show any activity … day after day. Individual stocks have started the declines … which I presume is a pre-cursor of things to come.
I expected that our markets will react to US cues which are fairly disappointing thru-out the week. However our markets have shown the resilience - thanks to continuous buying by FIIs. This has emboldened the bulls to rollover longs on the Thursday FAO expiry.
Apple has given results which were just in line with market expectations. Last two quarters, apple had surprised the market on the upside resulting into a pop in the US markets. This factor has to be kept in mind.
As expected and predicted, the fancied FMCG stocks have started underperforming and could be a drag on indices in the coming weeks.
I wish to reiterate that I will be extremely wary of taking further long positions till we have a clear break-out again beyond the recent high of 5800+.
I maintain that distribution ( which many bulls are calling as consolidation ) is clearly evident thru large intraday volatility of 60 / 70 points over last two weeks with-in a tight overall range of 80/ 90 points.