Markets have started behaving differently. Despite a rise in Asia and Europe, Dow Jones fumbled near 7400 mark and closed flat without gains.

Overall, it has been a deserving sharp rise after so much of pessimism and downtrend. But it has to be a cautious optimism because markets are still in the downtrend mode and reversal from formidable resistances is not ruled out.

Stocksweekly is still relevant. Trade accordingly!

Still the market players look back towards those high peaks of the yesteryear and find the current price very attractive. But it would be necessary to see any business in the foresight rather than in the hindsight. Evaluate and speculate in terms of the forthcoming earnings and impending economic data.

Specifically for India, the advance tax numbers for this quarter are somewhat lesser, comparatively. It would have to be seen if this fall in earnings has already been factored into the markets. Perhaps, not fully! Another factor which hangs fire in Indian markets is the forthcoming elections. The final results are slated for 16th of May.

A hung parliament would be ominous while a single party majority (any major non-leftist party) would be a great joy for the country and its economy. The infrastructural development is just a tip of the iceberg but there are many public sector entities including banks also that await private participation which could be possible only if one single party comes into power on its own. In the given scenario, it would be prudent also to accumulate some of these stocks on decline and wait fingers crossed until May 16th.