MFF – 081215 – 21:11 Hrs

+ Indian Stock Market as per various business channels is witnessing the year end rally. Why should buying come in only in the year end? And does it mean that after the year is over we will see a fall yet again? And why is that people expect a year end rally every year? Many readers would like to know this.

 

+ Majority of speculation is done by Hedge funds in Indian markets and generally speaking they are not supposed to show large holdings of cash in their funds. They need to disclose this as on year end and hence to reduce the cash balances they are deploying money in markets currently. Beware: Hedge funds are pure speculators and they do not care for valuations while investing or withdrawing hence the question, will they sell again in first half of January,2009 or not? Remains unanswered.

 

+ Govt. is planning to announce second stimulus package and that is yet another factor giving some comfort to the markets. We all may be loosing on various fronts in the current crisis but the Govt. has striked Gold! It has no problems announcing such packages at this point of time. Also read other articles published on this website, which will give you more insight about the market.

 

+ Though we are seeing some rally, it may only be a relief rally. We cannot expect major buying, as expecting continuous inflow of foreign money would be a distant dream for next few months atleast. The biggest hurdle comes at 3240 for Nifty which if tested would bring in lot of profit taking. Many people are mailing for a launch of Retire@Sixty offer, shall think of it based on demand from investors like you.

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