Market Commentary

Dear all,
The market is very sentiment oriented right now, so please do not get disturbed by the wild swings that you may witness as we head into expiry for the january fno series.
The global scenario is likely to improve this week as there is expectation of 50bps point rate cut by FED on jan 30.
Further, RBI will be forced to have a relook at the reverse repo rate and I expect a 25bps cut which will be v positive for the markets and for rate sensitive sectors like real estate and banking. I do not expect any change in the CRR. There is a view in some quarters, that RBI has enough fire power through the market stabilization bonds to suck out the excess liquidity which is bound to hit as FII will want to park their money into India in view of the great rate differential between USA and India.
Reliance Power today announced that they will be refunding the excess 25 billion $ which it raised through its IPO. A large sum of this money is going to find its way towards the market. Also, the refunds from Future Capital Holdings will be due shortly.
I expect the liquidity situation to improve dramatically with the new FNO series from feburary and the weak hands have already been wiped out by this correction.
On the stock front,
As was mentioned in the earlier post, Gmr was a sell at 194-96 levels. I have re bought it again at 178 levels and I expect it to reach the earlier levels again
Praj Industries has formed a nice Harami pattern on the candlesticks and which has been followed by Hammer Formation and i expect it to reach 180-82 levels soon from CMP 162.
Indiabulls real estate looks very bullish and should blast if the rate cuts come in

Stay invested and do not panic.