Market Update

It would be a good idea to be on the sideline and book some deep pocket profits.

 

The following is still a concern :

 

- US Market is showing signs of downside due to few issues on insider trading, bankruptcy of Sub Prime Lenders and Yen/US Dollar problems.

 

- Inflation is still a concern till the supply side of the agricultural products is taken care of. There is no news on how the supply side is getting tackled. We are still dependent on monsoon rains to a large extent.

 

- Interest Rate rise in India. Saving grace is expectation of cut in interest rate in Japan and US.

 

- No sector favourite. After a long time, there is no talk of defensive stocks too.

 

- Margin calls expected to come in.

 

The market seems to be heading towards 10500 points. I would recommend not commiting any cash now and start accumulating only below 11000 mark. Make sure you make your money work in the meanwhile in the Short Term Maturity Fixed Deposits.