Too Many Sweets can Cause Indigestion - Sainik

The week gone by was really very important considering the fluctuations in all asset markets not seen in the past 25 weeks. The volatility started in the precious metal markets and spread like wildfire to equity and bond markets, and by the end of the week, had affected the hitherto rock solid commodity markets.

To cap it all, possibility of sovereign default by Ireland roiled the currency markets. Over the weekend, Ireland will be in talks with EU to tide over its liquidity problems, and the next few weeks are likely to be very crucial for world markets across all asset classes.

As far as Indian markets are concerned, the expected correction did materialize, and is likely to continue for some more time. The period November 15–January 15 has traditionally been very profitable for indices and frontline stocks. Will history repeat itself? Only time will tell.

Even after the correction of last week, mainline indices were trading higher than they were at the beginning of the month. Thus it should not be worrying if weakness persists for some more time. Eyebrows should be raised only if Nifty starts trading below 5950.

The scrips, to watch would be SBI, Infosys, Tata Motors, ACC, L&T and TCS. These have been the leaders in this rally and they will give a clue to the market’s direction.

Today, Satyam unveils its quarterly results. While the institutions are bearish, insiders are bullish. Will be intriguing to watch who wins?

Whatever you do, hope it is profitable.