Its bear bear everywhere.Bulls went for a holiday I suppose.People who bought shares on 31st December,2010 and have not sold them on 3rd January morning session, I am sure they have postponed their financial commitments for next two months.Market saw a huge down trend starting form 3 rd January second half till end of February.Just for an example, a bluechip share like ICICI Bank came to 950 from 1150 level.People will say that it happens in market.After a huge uptrend in november,2010, market formed a channel which resulted into a big downtrend in January-February.But the interesting part in this particular down trend is the macro economic factors.This movement proved that if fundamental is looking gloomy,then no technical support level is there to stay.Too many macro economic news made the south journey perfect. Did anybody guess that market will fall from 6250 to 5400 without any significant rally ? A rising interest rate, rising inflation, low industrial production, high crude oil price and last but not the least some great memorable SCAMS ruled in the market for the first two month.
Well a hat's off to our honorable Finance Minister,that in-spite of all these negatives , he has produced a budget which has turned the market direction.People can say that it is not a game changer budget,but according to me he has done a perfect job for the market.Anything not negative is almost same as positive at this level for the market.Though it is just a rally and obviously not a change of trend, a good Q4 result,low food inflation, reduce in crude oil price, good global cues are the real game changers which can take the market into 6000 level once again.Whatever may be the direction of Indian market in next few months, main thing which can be said is, it is mainly dependent on fundamental clues than that of technical.May be this the reason why an investor should be a fundamental analyst while choosing a company and then go for technical recommendations before taking position in it.
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