US markets rallied yesterday on hopes of further rate cuts from Fed which is unfortunately unlikely to happen. Market always breathes on hopes and expectations. When expectations, small or big are not fulfilled it crashes without waiting for anything.
Asian markets are also up thanks to the US market rally. Indian market is expected to open gap up but today there is RBI meeting and everybody is looking for cut in interest rates. More than anybody market wants cheap money. Cheap money spurs growth. Growth is the keyword for stock market.
Market is directionless with a downward bias. Looking for quick gains in such a market is foolish. It is better to watch the developments. If there is no rate cut in India and US, again there may be a significant correction in the market. It is definitely not the time to take the risk with hard earned money.
Lion hearted traders who are addicted to trade everyday may try their luck with Educomp and L&T as both companies have announced excellent third quarter results yesterday. If trades are not closed within end of day and with a strict stop loss, lions may very well lose their trading capital and will be out of the market soon.
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