What the Market Says?
Market is not going up significantly as it gets resistance in its upmove. Its takes a way of 2009 initial upmove fuelled by liquidity. But market as a whole showing upward bias. The reason is outperformance of midcap to large cap. The beginning of the upmove was initiated by large cap buying which is easily assumed with the buying of large players and then follwed by retail players in midcap. This infers that the upmove will remain for few days and thereafter move will be determined by next strategies of big players. At present the consensus view is Nifty will top out near 5000-5100 level.
The strange thing is that midcap have gone 50% appreciation in their share price in just 10-15 days. The beaten down stocks have witnessed hefty gains. This makes us doubtful of the upmove, a sustained one. On the other hand, infosys has scaled down its future revenue, HDFC has come out with a so and so quarterly result. Corporate are eyeing on the RBI rate cut action.
One thing sure is that big players are churning their portfolio, shifting from defensive to manufacturing & agressive sector. And, they will not sell the new addition to their portfolio in a day or two because they are thought strong hand. Does it says, the infra stock formed the bottom. Not surely said, till a downmove will confirm the statement. Thus taking a cautious view is sensible. Lighting up your portfolio is neither a good idea nor addition of any new. Barring a few intraday or very short-period trade, Just to watch the market is good idea on delivery side.