Wednesday, January 2, 2008

Markets Indicating End of the Bull Rally Very Soon !!

Market Analysis : Nifty trading at a huge premium of more than 40+ points.Todays turnaround in the markets (2nd Jan 2008) were due to huge short covering in the last 1-1 1/2 hours of trade with the help of Large Caps like Reliance,SBI,HDFC & PNB.Nifty has ran up by more than 500++ points from 5700 levels on the expectations of good FII Inflows from Jan 2008,Reliance Power Ltd IPO & good result declaring by Index majors starting from 10 January 2008.

In this rally we have seen that all sectors of the market has participated in this rally you just name it Large/Mid/Small Cap stcoks....every cats & dogs are running in the upward directions.So after large cap stocks became heavy then buying shifted to the mid caps and then at last in the small caps too...now next move is in the downward direction only, which we will call a " CORRECTION ".When results will be out in the starting of the result season then FIIs & Operators will apply principle of " Buy on Expectations & Sell on News "

We advising our readers & clients to keep on booking profits from their long positions & stay in cash.Dont take any fresh long positions in this Bull rally otherwise you will be trapped at higher levels.This is the time to exit from the markets.It can hardly be in a upward momentum up till 10/14 January 2008.We are recommending to remain CAUTIOUS & dont get carried away in this rally.

The End of the Bull rally in Indian Stock Markets is very much near for a temprorary period of time for a correction of 10-15%.

We are recommending to Short Nifty Futures above 6300 levels in small lots up till 6400 Levels & then wait for a Big Correction.

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