GDPR Notice

GDPR Notice:
Please note that Google, Blogger, Adsense and other Google services may be using cookies and doing whatever they do. Please take notice that by using this blog you give your consent to those activities.

Thursday, February 03, 2011

Missing the technical bounce-back on Nifty

Indian markets had a technical bounce back and I missed it! At first I was expecting some kind of a pause at 5400 on Nifty. However the type of fall in the markets over the past few days coupled with the volumes had me in a fix. It looked like markets would simply drive through 5400 and land somewhere closer to 5300 or lower. So I had invested not more than 10% of the cash. Nevertheless I exited out of my positions and will patiently for levels of around 5200 for another mini-bottom.

Meanwhile, as we discussed earlier, the market is on track to form first of its two corrections. To quote my earlier post:
We will have two bottoms and three tops during 2011. Depending on how you look at the cycles, we had 2 or 3 of them last year. Consequent to the cyclicality, portfolios will have to churn thus leading to healthy performance of the brokerages and investment banks. I would expect asset managers to have a decent year again.
I believe we will be set for the peak around May-June or thereabouts and a correction around September. It is possible that the September correction will be shallower than the one we are experiencing right now. Naturally, I expect alert fund managers to have a decent year in calendar 2011. In these views I am contradicting most experts and talking heads.

Note & disclaimer:
This is not advice to buy or sell or trade in any security. Please invest post careful research and analysis. I will not bear responsibility for your actions.


My book "Subverting Capitalism & Democracy" is available on Amazon and Kindle.