Intraday Tips Market Trend
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Intraday Market Trend Today 16 October 2012

Intraday Market Trend Today
Markets are clearly in a consolidation mode, post a 400-500 points rise on the Nifty following the reforms announcements, which has absolutely surprised everybody on the Street. The result seasons could be used as an excuse for the markets to consolidate. Yes, I also feel that it could be a time bound correction. Possibly, post that the market can make another attempt to go towards the 6000 mark as far as the Nifty goes. The uptrend right now could be halted and it is happening across the world.

Even globally, the markets are consolidating post the liquidity driven risk on rally which we have seen. As far as India goes, a 400-500 points rise on the Nifty has happened mainly because of the reforms announcement, up thrust could be depleting right now. For more things to happen more reforms have to happen and for all this the government needs to play an important role. The investment cycle needs to be kick-started whether it is land acquisition, the environment clearance that needs to happen. Whatever has happened so far is not going to do too many things.

As far as the monetary policy goes, while the market is keeping its fingers crossed despite the inflation numbers yesterday, I feel the monetary policy has a very limiting rule for reviving the market or reviving the economy. What needs to be done is the reforms push for kick-starting the investment cycle.

Right now what we are seeing is only the consumption cycle is on, the investment cycle is virtually dead and that needs to be kick-started. For that, the government needs to do a lot and if that happens, yes it is distinctly possible the market will make its next attempt to go towards the 6,000 mark and possibly above that also.

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Intraday Tips Updated at: 10:27 AM
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