Well so we had big run on the bourses on Friday fueled by lot of positive factors first being the maturity with which the ayodhtya verdict was handled by the nation the peace and calm that was prevalent in the nation led to very positive response from the stock market
then the economic indicators from Europe and the us were in line the jobless rate seems to be stabilizing which again was good sign and finally the technical matter of some companies being out of the index and others joining it led to positive rally in the stocks of the companies entering the index so all this led to very bullish sentiment which lasted for the whole day and kept on building on the momentum the market never took a breather there was no sign of nervousness and the marked inched higher an higher for the day bringing us jut shy of 200 points on the top that markets formed in 2008
So where are we headed for Monday would the upsurge continue or would it taper down the us markets over the weekend was subdued with NASDAQ Dow Jones and s&p not showing any gains and given that market needs to take a breather I expect markets to open that is nifty to open with 20 to 40 points gain but then as the day would progress I expect the markets to go into some sort of profit markets and they should trading flat for the most part of the day
Markets have now started taking ques from the global; market and the kind of decupling that we have seen over the past few weeks seems to be again replaced by a strong coupling with the European markets so we have to watch out for how Europe opens and sustains a weak opening in Europe or even flat one can push our markets marginally lower
So my strategy would be to sell the nifty on a positive opening for possible 20 to 30 point gain and the book profits by the afternoon and then wait to see how Europe fares
Hope it is useful for any body who is reading this
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