WEDNESDAY: 01OCT 2008

Second Thoughts!
At least the message was loud and clear that the main street is very angry and wants someone to feel the heat. A safe transition would have been a wrong signal. But a second thought is welcome as some serious economists like our own Prime Minister are also showing concern about the credit availability in future.

The concern of some people was that this bail out plan would change the basic character of the U.S. capitalism. But perhaps, the financial sector should remain in the public domain to some extent so as to avoid such crisis. This is the reason that our Indian credit system is very well regulated by the government.

Now, coming back home, our investors perhaps thought that we were declining blindly in sympathy of others, unnecessarily! Even if the prices are stretched to some extent yet, for example, Reliance at 1900 at this level was not looking very expensive even if it has to go down in weeks ahead. The message was that we are adequately priced at these levels. So, we were the first to move into green territory though, generally unnoticed by the world media.

Technically, Nifty is faced with immediate resistances at 4010, 4078 and then 4300.
Don't get swayed by the sharp rallies because these would be just the bear market rallies. Keep booking profits.