Markets this week

In my last post on "Sectors to watch next week" I discussed about the 5330 target of Nifty feb fut which has achieved after breaking its support of 5356.13 and closing at 5314.45.Panicky is still there in the capital markets on account of selling from FIIs and will be there until the stability in  inflation,budget and political concerns will come.The next support for Nifty Feb fut is 5213 and it can reach there this week only.Today FIIs net selling was  of Rs. 726.54 Cr. and it is expected that FIIs will continue to sell for this month and we may even see Nifty reaching below 5000 levels on account of heavy selling from FIIs. FIIs invested $32Bn in Indian markets last year and till now they have taken out only $1Bn from Indian Markets, so we can see that its just a chunk of what they have invested and what more worse can happen.But this is the time where we can pick up the jewels of future and start accumulating them in small quantities for long term to have more than 50% returns.
As I said in my last post that US economy is recovering now and money is flowing from our economy to their economy we can expect dollar to strengthen in future as compared to all other four currencies.We can expect fresh buying after Budget 2011 when Govt. will become clear to large investors about which sectors will be favourable to them for investing and which are the sectors to which Govt. is going to promote,which are Power,Infrastructure,Shipping and Consumer Durables.Every economy grows when its infrastructure grows and when infrastructure gets improved, disposable income of each person will increase and that will promote Consumer durables segment and Cement sector is also directly related to Infrastructure,so if Infrastructure is going to do good in future Cement sector will automatically do well.
If you are interested in those jewels,keep reading my blogs!! 

Sectors to watch next week

We are seeing our benchmark indices correcting for the past 3 days in a row and still our valuations are very high that indicates we have some more downfall to see in the coming week.Most probably this downfall will go on till the budget comes with some consolidation and rebounces but this correction must be over by Feb end where we will be able to see fresh buying. Nifty may go to 5330 levels from here on soon after a rebounce to 5700 levels.
Among all the sectors,sectors which have high valuations and those need correction are IT,Metal and Pharma. Among IT you can have bearish view in HCLTech and Infosys,Metals: Hindalco,Sterlite,TataSteel; and among Pharma you can have Lupin,Dr Reddy,Sun Pharma.
Sentiments are still negative for indian markets and will remain so till the inflation concerns get over and we have some stability in price levels.FIIs are also selling and Jan has become the first month in last 7 months where it is net selling and this shows that they are taking out their money from Indian markets.Moreover US,Brazil & Chinese markets are improving so there is a possibility of money flow to these markets.