Bubble in emerging markets?

Standard Chartered warns of a bubble in emerging markets.

Economists at Standard Chartered warned that urgent action was needed to address the potentially destabilising impact of "hot money" attracted by stronger growth and higher interest rates.

A combination of a prolonged period of low interest rates in the west and strong growth in emerging markets meant the money would continue to flow in. "The size of the flows could become more significant," he added. "There is a significant risk, even though it is a consequence of economic success."


The entire story can be read here:

http://www.guardian.co.uk/business/2010/apr/26/standard-chartered-emerging-markets-bubble-warning

Short term trend is DOWN

The short term trend is DOWN now...As long as we are below 5300 traders can remain short..

FIIs have bought every single day from Feb 26 (Budget) till yesterday...they have bought around 18000cr...yesterday they sold 755 cr...the first day of selling after Budget day

It is very interesting to watch their actions over the next few days...The Goldman Sachs scandal could be just a temporary blip...or it could be an excuse to once again trigger a flight to safety...

Now trade the S&P500 from India

Standard & Poor's Brings the S&P 500 to India

For index enthusiasts keen on diversifying and trading the US in addition to Nifty there is good news.

Standard & Poor's, the world's leading index provider, announced today that it has licensed the National Stock Exchange of India (NSE), the largest stock exchange in India, to create and list Indian Rupee-denominated futures contracts on the S&P 500 (subject to regulatory approvals).

The licensing agreement, jointly from S&P and S&P-licensee Chicago Mercantile Exchange to NSE, is part of a landmark cross-listing arrangement announced today by CME Group, the world's leading and most diverse derivatives marketplace, and NSE that covers benchmark indices for U.S. and Indian equities. The Rupee-denominated S&P 500 futures contracts will be made available on NSE via a sublicense from Standard & Poor's.

The entire details can be found here:
http://www.hedgeweek.com/2010/03/11/38506/standard-poor%E2%80%99s-brings-sp-500-india

Sensex 18000 but individual stocks?

http://economictimes.indiatimes.com/markets/stocks/market-news/Many-stocks-sectoral-indices-still-trading-below-2008-levels/articleshow/5773288.cms

Every bull market has its heroes. Although the sensex has bounced back to 18,000 levels where it was 25 months ago, there are many stocks which are still upto 60% below the levels they were 25 months ago. This story keeps on repeating itself. Retail investors never learn a lesson though.

What does a person do? Focus on the index rather than individual stocks.

Nifty takes support at 5344

Technical Analysis 101 - Resistance once broken becomes support and Support once broken becomes resistance.

5344 was a key resistance for Nifty which was broken on the 5th April. Today nifty corrected Intraday and stopped exactly at 5344!

This is a key level to watch out for should the uptrend be sustained

Sensex claims 18000 intraday, FIIs pump 15K cr in March

The uptrend continues as Sensex crossed the psychological 18,000 mark intraday earlier today. FIIs continue pumping money daily since the budget. They have pumped nearly 15,000 cr in March 2010. They have also put in 1134 cr in 3 trading days in April. So far in 2010 their combined input has been + 5605 cr till March.

To put things in perspective they pumped 24,133 cr in the entire 2009, with April and May 2009 being the first positive months in the year which also saw the Nifty jump from 2700 levels to 4700 levels. DIIs pumped in +26000 cr in the same time period.

FIIs removed 101,000 cr from the market in 2008 while DIIs pumped in 73,000 cr in the same time period

So these are big numbers we are talking about. Let's see if the FII inflow continues and we see the bullish trend to continue in the coming weeks/months.

Nifty close above 5344 bullish

Nifty crossing and closing above 5344 is a bullish sign. 5344 is the intraday high reached on 29 March 2010. So keep a watchout for 5344 and above

Nifty still dancing near 5300

Nifty is still hovering near 5300...the trend is UP and the probability is there of Nifty breaking 5300...this would be confirmed if it closes above 5300 for 2 days...lot of new longs will be initiated and we can see 5450-5500 soon then

VIX is low...FIIs are still pumping in huge money...cheap capital is still finding its way into the markets...you must dance while the music is on!!