The bulls may recede into a corner if the markets do not pull back on Monday. The cues from the US are not too positive at the moment. Even the Satyam results may not be able to breathe fire into the markets.. The results won't make a difference - the Infosys, Wipro, TCS results have not made any difference either.
This is an important week for the market, last week was terrible and this week we have everything to play for. As we get into trade with very bad cues from the Asian markets. The big question is whether there is any kind of turn around possible in the next day or two or is the market headed for much lower levels in sync with what is happening globally.
Earnings are not making too much of a difference, the market seems to be in a little bit of a tailspin at this point in time globally and flows are extremely negative. So things don’t look good as we go into trade and this will be a very important session of trade.
Cues not good and Friday and last week was one of our worst weeks yet?
It was and one was hoping that we would get in Monday with a fair chance at a pull back because today is an important session of trade. If by the end of today the market does not show any signs of a pull back or even once again it gives you a failed at attempt recovery then I think the bulls might just recede into a bit of a corner, they are already in a corner. I think they solely need a bit a pull back to exit some of their positions in the markets but with the kind of cues that you are getting in from the global shores, one can just see the global selling intensify out here and maybe the shorts will not press for covering right now because they have the global tailwinds behind them.
It is a tough situation out here I don’t know what kind of levels we could be looking at but people who are hoping that Monday could be a smart recovery might just have to rethink because Asian markets are tumbling across us, so we have got pretty bad cues to deal with. There may still be a recovery at some point during the day but it’s getting more and more challenging with every passing day. So chances of even lower levels and significantly lower levels can certainly not be ruled out.
Asian Indices:
It’s looking pretty bad across Asia though the US did not slump too much on Friday that package came and went and the emerging markets have seen no joy in that.
The cuts are quite a bit in fact China is down 2.3%, which is quite damaging. If there is one market, which has direct linkages, which we look upto it is China and that’s down 2.3%.
Hang Seng is very volatile as always 2.5% down though off the lows of the day, Kospi is down 2%, Nikkei is down 2.5% though have come off the lows of the day. Thailand seems to have got back into the green but generally average 2% cuts across Asia.
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