Posted By : Kishore B.S
Today was the last day of the financial year. Markets saw a huge upside today. The point to notice is that the market was trading 1% up though whole Asia was either in red or flat. The support by European market came in later part of the day. One reason for the upside can be that the Indian mutual funds were buyers today. Today was the last day of the financial year. So, to increase the net asset value on the balance sheet they were buying extensively today.
Today there was a meeting of European nations’ finance ministers. Now i personally have become fed up with these sort of meetings. They just give a short term boost to the market. The rally fizzles out in a day or two and we are again back to the same old position. The finance ministers have agreed to increase the bailout funds for the struggling nations. Now what is European thin tank doing is that it is just providing short term relief. They are not trying to solve the problem at the root level. That day is not far when the nations of the EU put their foot down and stop helping the debt ridden nations. Helping these nations are showing effect on their own growth.
As of now the momentum is on the upside. All those people who were stuck with their long positions, it is a very nice time to exit your positions. Just have patience. Let the market correct. Sit high on cash. Wait for the levels of 5050-5100 to start buying again. These all are headwinds. Monday we can see more upside in the market. Nifty might try to test 5400 levels but i doubt it will be able to break that. So, have patience. Do not go long in this market. As the time to go long has passed. Don’t try to ride a passed wave.
(Inputs: Mr. Shubham Deva, An Stock Market Institute Associate, IIT Kanpur)