Tuesday, March 9, 2010

Sensex outlook

One year has gone since the world markets made record lows and made "V" shaped recovery against everyone's prediction. Zero interest rates, easy liquidity, lack of other investment options made the stocks to surge over last one year.

What will happen for rest of 2010 ?

As for as Sensex concerned, probability of fall is more visible than considerable rise from current levels of 17k. The best of possibility of 18,500 levels and worst of prediction can be to 14500 for the rest of year. Sensex could top out only after further rise and is unlikely to fall heavily from current levels.

Rising inflation, hardening interest rates, excess capacity of real estate, lack of infrastructure spending could dampen sentiments. Disinvestment could suck further liquidity away from secondary markets to primary markets. So tread cautiously.

No comments:

Post a Comment