Finally a sign of relief came on Monday last in the Indian markets and the world over too. Backed by some good news and the fall too on Friday, Indian share markets gained big way on Monday. Sensex was up 801 points or 7.61% to close at 13,329 levels and nifty was up by 211 points to close at 3,491 levels. Indeed it was a terrific session right from the word go. And all the sectors were on a upward move. Most of the stocks which fell badly on Friday made good recovery.

Meanwhile the US markets had also made a smart recovery yesterday and broke 21 years record for highest intra day gain.Dow was up by almost 900+ points or about 10-11% in a single day. S&P 500 also rose and made new records. Reacting to all this the Indian markets made some more gains yesterday and sensex was up by 174 points to close at 11,483 levels and Nifty closed gaining 28 points at 3,519 levels.

The US markets had closed marginally down yesterday with Dow losing 0.82% and Nasdaq lost 3.54%. Still there are some concerns about the implementation of the $700 billion bail out package. US govt has decided to inject about $250 billion in the banking and financial services sector to prevent them from further turmoils. Most of the major banks will be partly nationalized. We need to see how Mr.George Bush handles his last 100 days in the prestigious US president post and  brings out his best from this financial meltdown.

The Asian markets are trading weaker now with Nikkei-225 down by 1.72% and Hang Seng down by 2.38%. So in most likely we can see a silent markets today. Better to exit from long positions in every rally that you see in the markets. And buy at lower levels. And as suggested you can always enter this markets if you have 3-4 years horizon in your mind. When the markets recover the Sensex heavy weights like RIL,Bharti Airtel,ONGC,SBI,TCS, Infosys, ICICI, RCom ,SAIL would certainly lead the rally among all the stocks. All of them are trading at PE levels of 10 and below. So we can expect a lot from these front line stocks in the coming days.There is always a possibility of the markets retesting the new lows that they made recently.Hence remain very cautious while trading in the current scenario.

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