chakry comments on 17-12-2007

I think is there no reason to react to such a market move of 800 points down. We are now part of global market and global markets behave like this only. This in short could be called GANG RAPE and Dalal Street is famous for such rapes time and again. That is reason lot of punter call it as HALAL Street, though it is also to be understood that this kind of volatility is part pf Bulls strategy to kill the goose in the system. This is also called flushing system.

 

Christmas holiday, market crossing 20K giving much required comfort to punters, retail going overboard all made Bulls to take charge of market to become bears for time being so that once the dirt goes away from market. Another reason which is assigned for selling is RBI asking banks to remove bank guarantee to FII and MF though in my opinion this could not be the reason for market crash.

 

One school even advocated that GUJRAT election could raise toast of national politics and create instability at center which is also seems impossible for me.

 

At the end of the day my call is that this is part of rollover and this time Bulls have spotted the opportunity ahead of normal due time. Every month some triggers are found to time the market whether it was P Note or STT. This time we were fully geared up with such news to upset market breadth but Bulls surprised even our team too. Correction was brought without any reason.

 

Yes, it is rollover pain because by the end of the month volumes could be missing to the required level and Bulls could be able to drive the Sensex the way they want and if they are long they would see that havala is in their favour. This correction is similar to all previous corrections and would remain in V shape for sure because if it does not remain so then probably Bulls will be parting lot of gains to trespassers which seems difficult to digest.