Friends,
After a turbulent week in markets , it is better to be armed with the knoledge that the june month melt melt down has been happening for the third time in a row. The Nifty had seen the low of 2632 in June 06 the high of 3754 in May 06 only to see the high of 4224 by Feb 07. Again the May 07 high of 4306 saw the June 07 low of 4100 only to see the. Jan 08 high of over 6300.The high of April/May 08 has been battered to low of around 4300 on Friday last (20/06/08). Would there be the similar course over the next six-seven months of Nifty scaling the new all time high? This is a million dollar question and only time will tell what’s there in store.I would put it differently and would not speculate over the matter of high closing. My point is that the levels prevailing in June month fo 07 and 08 are suggesting that lower side has to be limited now and the resolution of oil price spiral will bring the confidence of investors back. Our FM is aready on a tour of west asia and has found receptive ears for his concern for oil prices and he has been assured the increased supply by the OPEC and more particularly Saudi Arabia will be ensured.Also the RBI would be acting in a considerate manner about the interest rates revision as the liquidity is already low and food article prices have been stable although the inflation has been higher due to base-effect and recent petro price revision.
So don’t please be stunned by the excesses in market place. Such excesses are some times managed affairs as against being a natural movement.
HariOm,
KrsnaKhandelwal
