Market Analysis of monday

Markets got off to a weak start following Friday’s tumble in the US markets, but steadied smartly as funds stepped up buying index heavyweight stocks. Buying support came from FMCG, energy and realty stocks whereas selling pressure was seen in IT pivotals followed by select metal and banking stocks. The Nifty closed at 4,508 down 2 points, while Sensex shut shop at 15,597 up 6 points.

The pain within that economy has begun to unfold. “We saw it on Wall Street to start with and now we are seeing some percolation of that on to Main Street. I would certainly like to see how that pans out in days to come before making up my mind on whether India and emerging markets in general have decoupled” .

Experts believe that despite negative global cues the same old pattern is repeated every time. Initially, the markets would open weak and there would be a recovery, the recovery happens very strongly upto 11 o’clock, then a flat kind of market for the next couple of hours, then a minor correction and again market is moving up. They feel that all this is suggesting that our markets have got lot of internal strength and it is actually maintaining at these levels despite all the negative cues.

We believes that though the markets have run up quite a bit, it is still not very expensive. While global factors will have a bearing on the short-term, eventually the country's fundamentals will take over. I think market will again retest its lowest again only see some stability after 16,000 sensex.Market todays shows quite strength but be cautious now .