Tit - bits

#The indices are trading down today. The markets looks tired and ready for at least 200 points Nifty correction. 

The BSE Sensex is now at 41,558.51 down 97.92 points (-0.20%) while the Nifty is at 12,240.15 down 22.45 points (-0.18%).  I'm expecting both the indices to come down if the Nifty spot breaks: 12010/11830 on the downside.

This means the markets are not taking positive triggers from the recent OMO announcement by the RBI. In my last write up,  I had expressed my apprehensions,  regarding a boost of loan offtake due to Operation Twist. I had mentioned in that article that the debt heavy corporate may shun,  from diving into further debt, even if the interest rate of short term loans are kept low. 

Also,  the result of the Jharkhand elections, after the Maharashtra episode has shaken the pillars of the ruling BJP.
The spectre of a Mid Term Lok Sabha election and a defeat of this "Nazi" branded BJP, known for their "Tughlaq - like" policy making decisions, now looks more probable than earlier; especially after the Jharkhand election outcome. 
Over and above the global slowdown, the kick - boxing on Tariff front between the US and China, and the specter of escalating food inflation are likely to keep the domestic markets, BEAR HEAVY. 
In such a situation, I would suggest you to slowly lighten your buy positions and sit with cash. However,  some small and mid caps could show sporadic upward mobility, basically due to seasonal effect. 

#The stock of once recommended Reliance Infrastructure (Rs.25.50) is hitting upper circuits since the last few days. Now though the fundamentals of this Anil Ambani group company is little better than some of its peers,  I still believe that too much positive bet on it in the short term will not be good, especially for the risk averse investors. Book profits or exit if you see its shares going near the LC.