Headwinds ahead


Well-Known Member
This market has shrugged off every bit of negative news, but there are major storms ahead.

The revelations from Arnab Goswami’s chat messages go all the way to the top of the government - because not many other people would have had advance knowledge of Balakot strikes.

I believe this could actually hit the market at its weakest spot - because we are just days away from the budget.

The negative news from vaccinations killing many people in Norway and the resistance to Covaxin by many people, could blow up into a major issue.

The vaccine was the primary hope for normalcy - and if that breaks, things could get ugly.

We are at 40 times earnings for Nifty. This rally is getting stretched, and there doesn’t seem to be much rationale for current levels.

While I like some stocks, they have run up so much, it doesn’t seem worthwhile to hold anything at these levels.

Last year we saw markets rallying strongly from May onwards - which is opposite of the typical “Sell in May, and go away” theme.

Which begs the question - will we see reversal of the typical January Effect theme? Would it be wise to sell in January?

At least it’s beginning to look that way.

Similar threads

Zerodha – Open Paperless Account

Open online account with Zerodha. Free delivery trading and Max Rs 20 for Intraday, F&O, Currency and Commodity Trading. Intraday High leverage with MIS, CO and BO.

Are you a day trader?