Indian Markets: What Next?

Its a good morning today, ASIA is up around 1% and we did have good cues from the US overnight. Post the FOMC meet, things have actually started looking good. The guys in the US who were actually leading the slide have started to move up; Lehman Brothers, Morgan etc... Fed has clearly said that OK, we do agree that there is a problem in the sub prime area but its the inflation that the fed is more worried about. And if FED says that they are concerned about the sub prime but not that much, they should be taken seriously.

For near term the cues definitely look good. Yesterday was for the last time in the last few days, FII's went out and bought a lot of nifty futures. A lot of shorts got covered.But that clearly doesnt mean that we wont have less volatility from now on. For sure that still is going to be there but in the near term it looks good. My opinion is that if the global cues dont induce more volatality, we can for sure touch new highs.

The thing is that we never know what the global situation turns out like. Just give it a few days and lets see how it turns out. The markets have there own ways, they move in manic manners.

My mantra for traders would be that be very cautious. Trade in small lots even if that means taking home a little less.
For investors its all about buying quality stocks and riding the wave. During the last 10 days we have for sure found a lot of stocks which meet such criteria.

Happy trading and investing. :)

Cheers,
Vaibhav