Stunned as ever?

It has been a stunning recovery once again witnessed by the market last week. After losing 1500 points in the previous week as the Union Budget failed to meet the ever growing expectations of the stock market players, market recovered 1200 points almost in the same speed.

Assurance from the Finance Minister on continuing reforms and divestment boosted the sentiments last week and the government siding with Reliance Industries in the KG appeal revived the heaviest among the index stocks. Persistant inflows from FIIs and positive global cues helped the market to sustain at higher levels.


As said earlier, it has been a stunning recovery. Many stock analysts and technical experts failed once again by expecting the largecap indices to cover the gap formed on the post-results day. As usual many who were waiting on the sidelines to invest at lower levels were sidelined.


Market turned to the bullish mode wherein every small positive news is rejoiced and bad news, however big, is ignored. Better than expected results from IT biggies have also helped to lift the street sentiments.


Sensex is back to 14500 plus zone wherein the valuations are little overstreched. Traders may take cues from global markets. Even though, US biggies are delivering better than expected results and stock markets are doing well, oil prices, a key indicator of global recovery, are not showing major upmove which is a cause of concern.


Investors can continue their cherry picking strategy as explained in the previous posts over a period of time with a long term view.


Happy week ahead!