Market is moving up only coz of continous pouring of dollars by FIIs from questionable sources. Nifty quoting at P/E 19.12 and stocks such as CAIRN, DLF, RPOWER, TATACOMM, STER are quoting at P/E of 543.56,237.37,101.51,121.02,102.89 respectively. Its not a oneway road and earnings definitely don`t support prices at this level. With inflation shooting up continously week after week, market certainly can`t rely on Sardarji in Planning Comission to save it from crashing every time. And hope he is sure that there is no blood on the dollars that is coming in. One hopes that post 2007 situation is not repeated once more. It happens only when greed overtakes logic.The higher you go, the harder you fall.
iinvestr, Let us pray that the sardarjis in Planning Commission and South Block will not push the public in general and the investors in particular repenting for the short-sightedness of the UPA Government in not having given extension to the tenure of Mr. YV Reddy, the previous Governor of RBI.
But FIIs bulls may take it to recent high of 5180 or even more before November expiry !!!!!!! However, if November future closes below 5000, December expiry futures may spring a major surprise on downside. I donot rule out it going below 4500 in the next series !!!!!! Ultimately in November series 5000 and 5180 will be a major testing factor !!!!!
I do not know the details of the seasonality of the SENSEX but November throgh April is good for Wall Street. The year end, because of bonus disbursement during christmas, is especially good. I do not see why the FII should treat this year end any differently. There is always time to dump after pump.
So Nifty has closed at 5005 marginally above 5000 but very well below 5180 !!!! It should not come as a surprise if Nifty December trades durng the course of the month around 4500 or even below 4500. Remember Budget gap is likely to be filled during this month only. Market manipulators are very well aware that January 2010 onwards all domestic factors which are not favourable to the market will start surfacing and in fact some of them may be visible in December 2009 itself. Sharp operators including FIIs will definitely liquidate the position. One of the earliest signs was clearly visible today Nifty December closed at a hefty discount of 25 points !!!!!!
Consider before going long in December series !!!!!!!!
So Nifty has closed at 5005 marginally above 5000 but very well below 5180 !!!! It should not come as a surprise if Nifty December trades durng the course of the month around 4500 or even below 4500. Remember Budget gap is likely to be filled during this month only. Market manipulators are very well aware that January 2010 onwards all domestic factors which are not favourable to the market will start surfacing and in fact some of them may be visible in December 2009 itself. Sharp operators including FIIs will definitely liquidate the position. One of the earliest signs was clearly visible today Nifty December closed at a hefty discount of 25 points !!!!!!
Consider before going long in December series !!!!!!!!
| NIFTY 
