Market Outlook 08/01/2008

Hi Friends
Yesterday our markets shown the strength , though the US markets are literally sold off on friday and the Asian markets were down on monday we stood out and shown the world our strength, FIIs are net sellers yesterday , but domestic funds are in buying side. This is still a cause of concern because history says that whenever there is higher participation from the retail investors the markets surprises them. Although the fall is inevitable as i have been telling but there seems to be enough retail participation in the markets backed by the domestic institutions that is pulling our markets up. Hence we might climb to newer highs before heading down. Our markets can make new highs today and can continue upwards, but do remem that markets have the habbit of surprising investors, (When all the brokerages were caution last week and asked their clients to sell we went upwards, this week the mood has suddenly changed and all brokerage houses are recommending BUY.. so CAUTION again is the buzzword) Fed Chairman is coming up with a statement on thursday regarding the Fed Rate cut, which will give a cue wheather there will be any further cut in the interest rates to stable the crunch in US markets after the subprime setback. There are also few data announcements on the cards in US which will also give us an indication where our markets are heading.
As of now, keep a close watch on remainder of the week and since I recieved a lot of messages from some impatient boarders out here that we are not trading/investing anything for the past 2 weeks.. So i thought that since we have already hedged our position with a NIFTY 6150 PUT (LOTTERY TICKET), we will go cautious and trade very lightly with a very short term perspective, if we earn good profits intraday then also we will book out because we never know, THE BEARS CAN KNOCK OUR DOORS ANYTIME...
FOR TODAY WATCHOUT SIEMENS ABOVE 2026, LOKESH MACHINE CMP 159, ICICI BANK CMP 1364 and another stock which I feel can rock if the markets are positive is BILPOWER cmp 352. PLEASE KEEP BOOKING PROFITS IF YOU GET DECENT RETURNS AND TRADE WITH STRICT STOP LOSS and TRADE ONLY IF THE MARKETS ARE POSITIVE.
Happy Investing
Investomaniac
JAIDADIKI