A couple of quick comments. I believe oil has bottomed out and is likely to reverse back to $50 levels. I say this because oil has gone up in spite of bad news about a decline in China's exports and drastic reductions in India and China's economic growth forecast by various firms and agencies like the World bank and the IMF. This would be a good time to take an exposure in stocks that are linked to oil. In the Indian markets, we have Aban offshore, Cairn Energy and RPL. I would look at buying them in dips. I see similar reactions to stocks that trade in the U.S markets. Stocks like Schlumberger, Transocean, Valero, Exxon all are up over the last few days. The dollar is starting to decline which would give impetus to oil, gold and emerging markets.
About the direction of the markets, I believe they should could touch 10500 levels and then it will most likely reverse. This i say based on technicals and also that the government is coming out with another stimulus package next week that is expected to be bigger than the first one.
No comments:
Post a Comment