We have seen heavy profit bookings
We have seen heavy profit bookings in mid and small cap segments. It is feared that more selling can not be over ruled on Monday to gather enough money to take exposure in forthcoming IPO of Reliance Power. This mega
IPO has shown unusual frenzy amongst the people.
One report suggests that India will see huge capital moping will be seen in the primary market in first half of the 2008, amounting to around USD 14000 million. If we look at the week that we had, having lots of news catching
During the week, sensex surged 140 points while Nifty shed 74 points.
If we look at the scrutiny of reasons for heavy profit taking in small and
Mid cap sector, we should look at the various indices to find the reasons.
We have seen heavy fall in US Markets probably due to news that Countrywide Financial, the largest US mortgage lender , said that foreclosures and late payments rose in December to the highest on record, sending its shares 33 % decline in two trading sessions. Some other falling shares in mortgage lenders segment were Indy Mack Bancorp slid 17%, Washington Mutual fell 3% . However, later, news came that Bank Of America will buy Countrywide Financial Corp. with pumping 400 Crore USD
Bank of America lended 200 Crore USD last October attracting losses of 103 Crore USD. This is great news for sub prime issue to take some pause.
Tata Motors buckled under pressure despite grand launch of world’s cheapest car, NANO .
We will not support intra day in YM for next two days on festival of Uttarayana. We advise all traders to watch the trend first and
Avoid taking huge positions. Trade in small quantity and if market show weakness , do not average your holdings.
If market is weak, watch support levels to enter.
Please Note that stock is good for by till do not break Trigger Rate.