Thursday, January 3, 2008

Market Outlook - Jan 08

I predicted that Dow would top out around 14000 levels in December and it had topped out around 13800 and it is back to 13000 levels yesterday.

I also predicted that DLF, IVRCL for upward rally for Dec 07 which materialised. My other prediction of Reliance and Amararaja have not materialised.

Jan 08 would be a tough month and bulls would find it hard to take it beyond 21k levels. Dec 07 was extremely strong due to strong all round rally in stocks and the buyers were mainly Insurance companies than MF or FII put together.

I feel that some of the stock prices shows irrational exuberance so I predict correction in Sensex from 20500 levels to 19000 to 19300 levels for Jan 08. If at all the bull rally continues, it will have resistance at 20800 levels for Jan 08.

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