Market Commentary for the week ended June 12, 2009

The trends emerging from equity markets in the last one week have been one of strength, hope and conviction. The markets invariably find support at lower levels and not only that, the rally upwards seem to be more in momentum, thus we are finding markets creating higher tops and higher bottoms. Thus this market has changed its character in the last 6 weeks to become a “BUY on DIPS” rather than “SELL in RALLY”.

The inflection pint would be the budget and if proposals live up to the expectation we can safely say that markets can re conquer its earlier highs in 12 months or even before if we are blessed with normal rains. Even if the budget doesn’t meet all the expectation the markets don’t seem like going too far down from the current levels and BUY on DIPS will be the correct strategy.

Weekly Pointer_15thJune09