Yesterday US markets rallied. But I am not too positive with the rally. Dow Jones was up over 200 points at one point of time and later corrected about 100 points to end the session 133 points up. Opening high and ending low is a typical bear market signal.
This rally is not enough to power Indian markets and I expect Indian markets to be volatile even today. Wait and watch is the best strategy for the time being.
Suddenly SEBI and finance ministry woke up and realizing that IPO's are not prized properly. Greedy capitalists are sucking investor's blood in the name of "value creation". The value creation bubble is burst, thanks to Reliance Power IPO. Independent valuing agency only should fix the price of the IPO and this rule should be framed as early as possible.
Educomp may be good from derivatives trading perspective and booking profit as soon as one is in profit should be the mantra for the day. Reliance communication is beater up badly because of Reliance Power issue. Reliance Infratel's valuation is under threat because of recent crash of stock market and Reliance group company stocks.
Investor's should not be misguided by statements from 'Indian attire, Harward mindset' people who utter rather slowly everyday that India growth story is intact. As all of us know Industrial production nosedived from 13% to 7% in the latest quarter. Still if one listens to the preaching even god wouldn't save them!
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