Is it consolidation or distribution?

The markets corrected from the higher level have become an opportunity to prune the earlier positions but not to build further positions. The Nifty will consolidate but the stock specific distribution in imment at this point in time. The clear signal is 7% down in Siemens, yet to recover and ABB fall, as well those who shorted in RIL and Tata steel forced to buy at higher levels. The operators are making all possible ways to trap the retail investors as the market has become stronger to mend to one’s whims and fancies.

Those who are in long can continue to hold until Nifty stays above 4491-93 levels. The fresh buying opportunities will emerge in NTPC and REL. The telcos are now Towers of money spinning. Those who are long in Bharti can wait to sell above 1000,RCOM above 625 and Idea above 175. The results of Cipla are disappointing and no big news to trigger up move may consolidate at 180-170 level. The fertiliser stocks likely to advance further as the food- security has become the need of the hour. The Unitech & DLF can be maintained in once portfolio but not small construction companies as the space demand by the BPO & software companies for next two to three years is limited. The surplus space and over construction in reality will dampen the demand in the market and make them loan defaulters that could bring cynical effect in the market. So anticipate the spate of the reality market in the context of rupee appreciation and emerging threats from China, Malaysia and from other emerging countries.
Now India is poised to grow in nuclear power, KPO, CRAMS and biotechnology. The other space for growth is emerging in retail malls and entertainment market through cable and WIMAX with 3G spectrums.