Market Commentary

Winning Strokes

As expected the domestic benchmark indices corrected sharply today, amid broad based selling pressure. Banks, auto and metals tumbled.

The S&P BSE Sensex, plummeted 503.62 points or 1.29% to settle at 38,593.52. The Nifty 50 index shed 148 points or 1.28% to close at 11,440.20.

US political developments and tougher decibels  from the Washington and Beijing on trade deal also spoiled investors sentiment. The market breadth was quite weak. On the BSE, 762 shares rose and 1755 shares fell. A total of 128 shares remain unchanged.

I had given a sell on Nifty Bank at around 29810 for a target of  29550. The Bank Nifty closed at 29,586.05 down 597.05 points.

I had given a sell on the markets yesterday, and I believe we will slowly glide down towards 9200 as the P/E is quite high.

Meanwhile, the initial irrational euphoria created by the media, post FM's cut of corporate tax has started to cow down.

When the Private Consumer Index is at 4 year low, it would have been more worthwhile if the FMO arranged for measures which gave more money in the hands of the consumer -- though a cut in GST for certain goods, is a laudable step from the GST council headed by Bengal FM, Dr.Amit Mitra.

Ms.Nirmala Sitaraman looks a tad better in style and action than her predecessor, late Arun Jaitley. But she looks a bit inexperienced as far as the finer points of macroeconomics are concerned. She therefore needs the help of an expert on the same, standing at a kissing distance from her.

What will the poor lady do, except trying her level best, when she is entrusted with the job of mending a severely tortured and deeply wounded economy by the unscrupulous pair of NaMo -- Amit Shah?

Also, all those corporate honchos who trumpeted demonetization, as a one stop steroid for curing multiple economic plagues should now tender a public apology to the people of Nation.

And what about Narendra Modi's 50 - day cure fake rhetoric during those poignant days?

Anyway, what I feel is since the market is undecided, it is better to stay on sidelines till it gives a more pronounced signals on the either side.  However, the shorts can be taken as the current fundamentals doesn't support the current levels of Sensed or Nifty.