Although quite a lot of traders would have been left looking at the screen as to what suddenly changed in the markets in last 1 week.
Investors with an old portfolio would certainly be happy as some of their stocks have also gone up finally.
Last week had mentioned how suddenly everyone on the street has turned so Bearish that it was a superb setup for a Short term Rally. Also one good line ---
Start of A BULL Trend is always a Bear Rally
Now is this a turnaround – NOT sure but its been rewarding 🙂
Look for the technical and sentimental reasons here - http://www.nooreshtech.co.in/2012/01/nifty-technical-view-bearish-consensus-is-very-high-a-good-setup-for-a-short-term-rally.html
Now lets look at the Index moves.
From the lows on 2nd January ---
Sensex is up 5.8% on the peak of it and 4.8 %
Nifty is up 6.3% at peak point and 5.3%
Now lets look at other indices.
Bse Midcap Index is up 8-10%
Bse Small Cap Index is up 10-11%
Many of the stocks are up 15-30 %.
A simple example had initiated a view to accumulate LnT its moved is up 17-20% from the lows.
Hindalco gave 10-15% returns
There are way too many examples.
I believe this rally could extend in midcaps/smallcaps and even stretch up to 4900/5100 but that does not imply its a buying advice. As current fresh buying will be of short term nature but our long term view remains of being a buyer at 4700-4500 and lower in any panics to 4300-4400 if at all it comes.
For more of our favorite investment calls and short term advice --- check www.analyseindia.com