due for correction?

I think the markets are due for an intermediate correction within the next few days. How much this correction will be is difficult to guess, but if the US markets continue to remain positive and news flow from US and Europe remains good, our markets shouldn't correct much.

There is an obvious and visible attempt to keep the nifty above the 5100 levels, despite the fact that it has been very unwilling to stay there. The reason for this are the two big IPO's of godrej properties and JSW power. it is not uncommon for promoters to "manage" the markets when they float IPO's. And then these are two large corporates, so it should be easy for them to do it.

My feeling is that once these two IPO's are done with and promoters have collected their booty, we may be in for a rude shock. These two issues alone are expected to suck out a lot of liquidity from the markets.

I would advise traders to adopt a wait n watch attitude till these IPO's are done with and then take a call depending on which way the market moves. Aggressive traders should use tight stop losses to avoid being caught on the wrong foot.

comments welcome...

regards,
newbie_7

yeah. iam also thinking like that. because volume was low.

The wait and watch thing reminds me of the MAY 2009 run up. Most of the people had taken a wait and watch approach, lost the entire rally, and not to mention that also many people lost more monet than they could afford to lose.

What is a tight stoploss anyways? Is it like some screw or hardware part? If the market opens with a gap, you are screwed tighly.

Great Indian Political manipulation of the markets...
when it is most expected to go down.. it is heading upside and when all will be convinced to have an upside move..
Damm.. it will go down killing thousands...