Bulls seek positive triggers
Despite over 15% fall from the all time highs, the market is struggling to gather some momentum, as investors are still reluctant to resume their shopping spree. Valuations are still quite high compared to other emerging markets. FIIs continue to be net sellers. Mutual Funds too are sitting tight. Retail investors are the worst hit among all category of investors. The mood of the market can be gauged from the fact that new listings are getting hammered unless it is a fundamentally strong company like MindTree or an Idea Cellular. Companies are finding it tough to get the IPOs subscribed. The undertone remains fairly weak and the trend will take time to turn around. Globally, many key economies such as US, Japan and China are facing some sticky issues. Liquidity too has dried up considerably. Emerging markets are witnessing heavy outflows. Risk appetite, which had soared in the last 2-3 years, has suddenly nose dived. There is more bad news in the air than good news. Investors are so rattled that no good news is good enough to revive the sentiment. Next week too doesn't look rosy. The market direction will continue to hinge on global trends, liquidity flows and inflation numbers. There are more chances of the market falling than rising. Even if the bulls do manage to rally for a day or two, its highly doubtful whether they can keep up the momentum for a long time. Talks of a downturn in the US housing market, concerns over the overheated Chinese economy and upcoming policy meetings of Bank of Japan and the Federal Reserve will keep the bulls on tenterhooks. We are in for yet another choppy week. Investors should tread cautiously and lock-in some profits at every rise.