20 AUG 2008; RESILIENCE

Resilience amid rising inflation?
In spite of weakness around the world, we are still witnessing some buying at our given levels of 14400(4300). Nifty futures premium of 21, points towards confidence in Indian markets.

Today also we have weak cues from world markets but this recent fall around the world is amid declining volumes, implying willingness of investors to hold. We feel that savvy traders and investors are not so scared of falling markets anymore. They rather seem to be looking out for long to medium term kill in sectors other than finance. Infrastructure in India has to keep pace with the world -and Chinese Olympics infrastructure was everybody's envy! Wasn't it?

We still stick to the validity of our outlook and recommendations;( in Hindi also). Buy on decline according to the given levels and stop loss. If 4300 level (on closing basis) of Nifty is respected this week then brace for a rally towards 5100 in near term.
But let not greed overcome your strategy! You never miss the bus in markets. It will stop by you again and again.