Dated 5th January, 2009

Indices recovered from the lows and markets gave a tremendous bounce back in terms of market breadth. Almost all sectors participated prominent among them were Media, Realty, Infrastructure, Metals, Banking, Technology, Capital Goods and Power. Unitech was the top gainer Satyam Computer, RCOM, Sail, Reliance Infra, Hindalco, Ranbaxy, Suzlon, Nalco, ABB, ICICI Bank, Tata Motors, Siemens and L&T were among the top gainers gaining anywhere between 10-35% over the week.


It was one of the worst weeks for us in terms of the success ratio of our weekly calls and outlook. Almost everything went wrong as markets staged a big rally. Markets defy everybody at one point or other and we are at the receiving end last week. We still maintain our overall view about the markets and recommend an exit for investors. We see resistance for Nifty coming at 3160 and further at 3250. We feel that markets are in a secular bear spiral and we might see a prolonged bear run on the markets and the rally that we have seen is a corrective rally which will fizzle out sooner or later. We do not recommend going against the trend and hence are vary of recommending a buy at this point. We suggest traders to wait for opportunities and remain sellers on the way down. Those who are holding on to the short positions should continue to hold the positions as we see troubled times ahead. Avoid long positions at any juncture.