Today the trade was simple and straight. The ones which did not run for many days are now participating in the rally. This might be good and bad at the same time. Good because that makes the rally a very broad based one, bad because now each and everything seem to be running, whether it merits increase or not. The likes of Ambuja, DLF, ACC, GAIL & Sesa Goa were amongst the top gainer for the Nifty stocks. Now the cement pack has been very quite on the back of subdued cement prices and consequent flat or lower earnings; so where is the need to run away to glory?
The global markets running with confidence lends more credibility to the continued terrific performance that the indices are displaying, but now I am getting a feeling that it is moving too fast and too furious for comfort.
If that were the case, then we are in for trouble ahead since YTD we are now coasting at around 15% or thereabouts on the Nifty Index and if we keep moving this way then in a few weeks we would be hitting 19k levels very soon. And then we will need to pull out money fast. What might be interesting is that fact that in all this, only the outsiders would have made money. Since the FII’s are pumping the money and the domestic guys are still sitting on the sidelines. So we could be missing the stellar returns yet again and sound like being in catch 22. Again!
February 2012 would be very interesting indeed. If this gallops, then we make superb returns, if we return then the question would be, are we returning to sub 4800 levels? This market still would not le us sleep easy. Keep eyes wide open, steep curve ahead.
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