Sunday, May 23, 2010

Are we poised for a short rally?

Last week (till 21st May 2010) everything looked thorney. But Monday may look different. What could have changed over the weekend:

(1) Then on Friday night Germany passed the crucial bill to fund its share (Euro 148 billion) of the Euro 750 Billion. That bring the suspense to an end, atleast for the time.
(2) Warring Brothers have struck peace. Anil ambani after tasting defeat in recent in supreme court regarding RIL-RNRL Gas Pricing case has agreed to scrapp off the four year old non-compete clause. Media reports that from now on Mukesh Ambani (could be quoted as a Xerox copy of Dhirubai Ambani in letter and spirit) is free to start businesses like Power Generation, Media, Telephone and Financial Services. And Anil Ambani is free to start his Petroleum business. This is a good news for stock market, since no information (rather secrets) would leak if both the brothers understand each other or remain together.
(3) Monsoon is scheduled soon and is likely to be near normal.
(4) With FNO closing in the next four days (Thoursday 27th May 2010), there is a huge number of shot that are in the market. Once they are covered market is likely to move up.

All the above factors can trigger up a swift upmove in the market.
Hope you read this article in time and make use of opportunities.

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