Sensex is Again Soaring Why

Few days ago people were thinking about the clash sensex and it was true also because nearly 2.40 Lakh crores were dumped in a single day fall and as there is no liquidity in the system so people were trying to stay away from the situation.

Has Situation Changed
As I see now the sensex closed in positive zone for two continuous days but did this means that situation has changed or reversed. I don’t think so! This is just some short coverings and nothing more than that.

If you want to check this then see the market graph whenever there is a spike the profit booking comes into effect. This is the true sign that market is not rebound its just a normal rally.

Beware of the Fact
If you see today on Tuesday 21st Oct 2008 Idea did not posted a good numbers and it fall but it does not affected the market sentiments and every thing was rallying. But if you could just make out few days back when there were no bad news even then the market was falling.

Its true that it was due to FII selling and this is also true that FIIs have not started to reinvesting in Indian markets and despite of all this the markets are closing in positive zones.

People just make up your mind we don’t have that much power to take sensex to 21000 level without the help of FIIs. Also it’s a diwali time and everyone wants to take profit their home so for the people who want to make some decent profit I would suggest wait till diwali and you will get some very nice opportunities for buying.

My absolute guess on the markets is without touching the level of 9250 levels at sensex it will not be a true re-bounce, therefore just wait and hold your breath for investing. Some nice stocks, which you should keep your eye on, are Tata Steel buy when it reaches 220-230 and Tata Motors buy when it reached 190 levels.