Today Market Review( 22-08-2007)

Note : Please See our yesterday Prediction on Lower of this page.We were predict the market right .

What a volatile session of trade it’s been? Down in the dumps in the morning and then a V-shape recovery from the lows in the largecap for sure and also in the midcaps. At one point the midcap index was down 2% point and from there we pullback into the green marginally though at this point but in many largecaps and select midcaps we have seen some buying around those 14,000 levels and 4,050 for the Nifty; clearly there has been some buying and even short covering, which has happened. So not bad as we stand with almost 200 point rally that’s comforting because the morning looked a bit scary.

Very uncertain and very uncomfortable actually more than uncertain. Its not that one feels that there will be a fall but the market has not settled; these are manic kind of moves which are coming about and that’s never very comforting. It could lead to more upsides or it could lead to more downsides but one thing is for sure this market is very edgy at this point in time and what you are seeing right now you cannot take any kind of direction for the future either long or short. So trading is still froth with a lot of uncertainty and if you are trading even intra-day today chances are you would have got caught wrong on both foots so trading is not a good idea.

But one thing is good that around 14,000 levels for the Sensex and 4,050 for the Nifty, you are seeing some investment buying coming in at least on the largecaps and that’s good because whatever you say at the end of the day politics, global volatility, I think we have probably entered the first value zone around that 13,800-14,000 mark at least one level of buying should happen even if the market has to seek lower levels that represents value and many stocks do and on panic mornings like we have seen today its good to see that there is some buying happening around those levels.

That is not to suggest that the market may not seek lower levels but at least some fundamental buying is happening around those critical levels after the correction which is good but as you said vary all over the place and too manic to take anything away from this morning afternoon’s trade. The way its going the next one hour you could lose all these gains or add up 100 points more it could swing just either way you do not know.