NIFTY FUTURE ISLAND reversal is negated after NIFTY futures (June) crossed 5071, Island reversal is very powerful and reaction is fast. Many wanted to know my view after Island reversal negated island reversal is just 3days old pattern and we hold bearish view on the market from January2010 and Index hasn’t moved much and now Nifty moving below 5000 would be closely watched.
Nifty and Sensex still have Head & Shoulder formation. Market has to cheat everyone @ every point of time to be right, but in my view after 84% returns in 2009 we would not have a positive year and risk to reward is unfavorable for 10-15% rise is what many are looking in next 12months. Global crisis extends then risk can be 30-40% on downside which is not worth the risk we would like to take as now IMF, World bank and Indian FM also started to talk of Global crisis.
Note: Market normally moves faster due to short covering and if market has to correct it will never give a chance for anyone to trade so only we have advised 32% investment only and holding rest in cash.
The World Bank on Wednesday said a double-dip recession could not be ruled out in some countries if investors lose faith in efforts in Europe and elsewhere to tackle rising debt levels. The World Bank's Global Economic Prospects 2010 report said slower growth in developed economies would deprive developing countries of healthy markets for their goods and would cut into investment. http://in.reuters.com/article/idINIndia-49178120100609
Goldman sued by hedge fund over notorious CDO deal, An Australian hedge fund is suing Goldman Sachs Group Inc over an investment in a subprime mortgage-linked security that contributed to the fund's demise in 2007. http://in.reuters.com/article/idINIndia-49178420100609
Global hedge funds suffer worst losses for 18 months; Hedge funds suffered their worst losses for 18 months in May as investors bet wrongly that stock markets would rise http://news.bbc.co.uk/2/hi/business/10273567.stm
Finance Minister: Escalation in Euro zone Crisis May Hurt Capital Flows, Cannot Remain Aloof of Global Developments and Banks Should Pay Immediate Attention to Contain Bad Loans.
Risks to the global economic outlook have “risen significantly” and policy makers have limited room to provide support to growth, International Monetary Fund Deputy Managing Director Naoyuki Shinohara said. http://preview.bloomberg.com/news/2010-06-09/imf-says-global-risks-are-rising-policy-makers-have-limited-room-to-act.html
