July 03 - Up or Down Global cues are not enough strong ! We have been continuously expressing on this forum that one should avoid long positions. Because no on can guess perfectly where we are Heading. Yesterday we saw a sharp bounce back. After that US market slumped in negative territory on rising Crude Prices. It's just one bounce that is needed for crude to cross 150 USD. And once it does that, next target for it will be 170-180 USD, as predicted by various researches.
What are global cues today?
US markets closed sharply negative on rising crude prices and more economic worries.
Asian markets opened sharply lower in initial trade , but now have recovered somewhat
Apart from that, as usual it is Thursday that means tomorrow is Friday. For quite few day's Friday has proved to be black day for market as Government releases inflation numbers on this day, and On every Friday we see steep rise into it, which leads to more economical worries.
So how those inflation numbers will come out on this Friday?
Again, tomorrow Left will be having a crucial meeting to decide upon nuclear deal and whether to support Congress or pull out it's support.
Kind of momentum that crude is having, it may see a big jump overnight and may cross 150 USD.
So lot of uncertainty lies ahead and in this scenario , I am sure that lot of investors will take a cautious view today, as just one day before we saw pull back rally. We may see some kind of profit booking today.
How Indian Markets will be today?
The only positive for markets is that Asian markets have now somewhat recovered from it's low and now trading almost flat.
But if profit booking continues, then market may fall by 1% to 2% and in worst case even can fall by 4% by tomorrow eroding all it's gain on yesterday.
Upward move depends upon how European markets open and Asian markets perform as day progresses.
Watch this space for more tips.
Stocks to watch : Cairn India . It may see sharp upward move today.