January 2013

My Weekly Take ..... Trading levels --- 7th / 11th January 2012



Proverbial Fiscal Cliff was averted at the 11th hour on 31st December and that sparked a global rally in equities as well as commodities. Indian market had premted the rally on the earlier day hence our response was not so euphoric.

But that brings us to next point of conflict between President Obama and the Republicans – DEBT CEILING. It seems that this time the negotiations will be even tougher and the atmosphere will get murkier. But that is still 2 months away – End February.

That means global markets may continue to cheer for few more weeks and correspondingly we may not give up any recent gains in a hurry although possibility of further up-move is muted.

There will be vicious sector rotation and the midcaps and the smallcaps will have field day in coming two - three weeks. Keeping that in mind take moderate positions in these stocks but be quick to exit at first possible opportunity as you will never know when the tide will turn for any particular stock.

After 20th January, we may have shadows of BUDGET on the market as some tits-bits of information will start flowing from Finance department.

ALL THIS IS PREDICATED ON STRONG FII FLOWS FOR NEXT TWO WEEKS ATLEAST.

My monthly trading levels are out and paid members have them. At 3,000 rupees a year, they provide tremendous value for money proposition.