Correction OVER ???? or OVER correction !!!!!!!!!

The regular readers do understand that the markets corrected more than anticipated, trading even below the expected 4900 level which has now become a strong resistance to scale up. The FII are engrossing the profits made all these days in sectors that affect the most in future like banking, motors, pharma and refinery sectors that out performed and they rule the Nifty anyway.

The economy is heading for a testing time with out the stimulus package. The US economy is going to do well as the world is now recognized the social sector spending for a sustainable dignity of life. So the spending in health care and the alternative energy will through big opportunity to us.

We are now focusing on infrastructure building hand in hand with social sector spending through NREGS and other rural economy spending. The coming budget will be more rural infra and farm spending which proved a big success to our economy. So no more cuts to corporate facilities or no more favours to corporate demands. The bulging fiscal deficit will be addressed through sale of PSUs and the governing is doing business for long time. So it will help the markets to float above these levels for some time.
The concern in food inflation now crack the foundations of the markets due to more stringent actions to controle the money circulation and inflationary rise no longer desirable to emerging markets. As a whole, the markets may not have pre-budget rally due the local and the global concerns.

The deep cut is not over for the markets so long it trades below the 4830 level. The bulls were captivated in the lower band of 4950 and 4830 level. The strong cues needed to pierce the resistance to release the market from the bear grip.
The big boy Reliance has suddenly dropped its strength to move up once it dropped below 1090 level (pls. read earlier postings). Now the markets will have something to offer to bulls only when the RIL trades above 1020 level and Nifty above 4885 level. The ICICI has to trade above 835 levels, a minimum of 821-25 is required. The markets are now dependant on the budgetary supports and the cut in corporate tax can trigger the Bull Run which is possible way to encourage investments for plough back method.