So while the bulls may me on the defensive right now, the playing field is still skewed in their favor.
If the resistance level is broken the Sensex may head to 19,300 and the Nifty can target 5700.
One reason for the apprehension about going long now is that the bond market has not joined the equity market's celebration
On a fundamental level, the market is showing that it was addicted to the easy money from the Federal Reserve.
The Nifty has not broken support, but the US markets have. The index to watch is the Nikkei, with the Japanese govt set to flood the economy with liquidity
The Republicans and Democrats are still far away from compromise over the tax increases and spending cuts that kick in automatically in January
An Obama win is sure to sock the stock markets since he is likely to end the Bush era tax cuts on capital gains and other taxes the markets love.
The Nifty lost its bullish power and is now back at support by not catching a significant bounce. On the contrary, the index is hammering away at support, which is weakening that level, making it more susceptible to a breakdown.
Nifty began falling before Nasdaq fell in April 2012. However, after the Nasdaq fell, the Nifty fall accelerated. This shows Nasdaq has an effect on the Nifty.
A US study reveals that banning short-selling does not arrest price declines, but may in fact worsen the fall.
The dollar's strength has usually meant bad news for the Nifty. So Nifty bulls should hope for a dollar stagnation or fall
Gold is on the cusp of a selloff as the dollar strengthens, but all bets are off if the US eases monetary policy and there is fresh eurozone panic.
The EU decision to directly bail out weak banks in the eurozone gave the markets a reason to rally, but don't count on the rally continuing indefinitely.
Two factors raise doubts about the currently stock rally. To sustain, the dollar has to sell off and copper must show signs of revival.
The Sensex has reached the point where it could move decisively downwards. It can bounce, however, if there are signals of monetary easing everywhere.
A continued positive return on the US dollar could mean a depreciating rupee. This scenario could play out over the long term.
But, does that mean it's game over for gold and silver. Not so fast. Notice that silver is still hovering near its 200 day moving average as shown by the blue line. And gold bounced off its 200 day moving average.
Silver is at a critical level from where it can take off quickly. But hold your horses. There is still one hurdle to clear.
The IRF 2014 version opened on the NSE on 21 January and is clocking volumes of over Rs 400 crore in about initial two hours of trading. The IRF will open on the BSE on 28 January. Volumes are likely to shoot up as the IRF trades on all exchanges.<br /><br />
Given that equities are at record highs in India and many parts of the globe, the volatility will be high with wild swings in markets. At times of volatility, it is best to lower risk in your portfolios.
The reason is that a stronger US economy will lead to the Fed lowering and stopping its $85 billion a month bond purchase programme in the coming months.
The strongest factor supporting the Indian markets is the fact that the US markets are still grinding their way up. This is most likely going to provide an impetus to the Indian bull
S&P does point out that whatever fiscal discipline that has been achieved so far has been at the cost of cutting down on development project expenditure or selling state enterprises.
Let the speculators/ traders and big investors make or lose money in unregulated markets. You will only get the end bits if you play it right but you will end up losing heavily if you play it wrong.
The 15-member advisory committee on mutual funds is headed by Janki Ballabh, former chairman of SBI.
Central Banks policies and actions can lead to short term volatility and also give people like us something to write or talk about. However do not let central banks actions lead you away from your longer term objectives. Let the traders play the volatility while you ride out the short term volatility for longer term gains.<br /><br />
Shadow Banking in China is dominated by trusts that are loosely regulated finance companies that cannot raise deposits.
The arbitrage for FIIs is the rising yield curve prospects in the US and falling yield curve prospects in India. FIIs will invest in INR bonds to take advantage of this fundamental arbitrage.
Keep an eye out for market correction but do not close your eyes to the broad positive trends.
The rise in Sensex and Nifty is not to be ignored especially given the poor performance of India's peers and given the strong performance of developed economy indices