Good morning



IF ONE HAS A CLOSER LOOK AT FUNDAMENTAL FACTORS AFFECTING THE MARKETS, THEY WERE QUITE DISAPPOINTING. VERY BAD IIP NUMBERS, DOWN GRADING OF GROWTH RATE TO 7.7% FROM 9%, INFLATION RISING TO 12.44% AND TO TOP IT UP, THE INACTION ON THE P NOTES ISSUE IN CLIPPING THE WINGS OF MANIPULATIVE HEDGE FUNDS ARE ALL NEGATIVE FACTORS THAT MAY BRING THE MARKETS FURTHER DOWN IN COMING WEEKS.MOST OF THE ASIAN MARKET CHARTS ARE PLACED AT CRITICAL LEVELS. ANY WEAKNESS IN DOW OR ASIAN MARKETS DURING THE COMING WEEK CAN EASILY CONFIRM THE NEXT LEG OF THE DOWN MOVE. CRUDE IS THE ONLY FACTOR THAT CAN SAVE THE WORLD MARKETS. CRUDE IN MARCH 08 WAS BELOW $100 AND THAT TIME THE SENSEX & NIFTY WERE ALSO AT PRESENT LEVELS OF 14800 AND 4500. IN APRIL 08 CRUDE WAS ABOVE $120 AND INDICES INTERESTINGLY WERE AT HIGHER LEVELS OF 17000+ AND 5000+ LEVELS AND NOW ALTHOUGH CRUDE IS AT LOWER LEVELS OF $113 INDICES ARE MUCH LOWER THAN WHERE THEY WERE WHEN CRUDE WAS ABOVE $120.

HOWEVER SUGAR HAS BEEN THE BEST-PERFORMER AMID FORECASTS OF SMALLER CROPS BY PRODUCER NATIONS LIKE INDIA,BRAZIL etc.THE GLOBAL SURPLUS WILL NARROW DOWN SHARPLY IN THE COMING YEAR.LIKEWISE TEA PRODUCERS ARE EXPECTED TO REAP GREATER PROFITS.

ALSO AFTER A SEVERE DRUBBING CRUDE OIL RELATED STOCKS ARE WARRANTING A SECOND CLOSER LOOK.



PLEASE MAIL US YOUR QUERY AT contactus@indiabullion.com with equitygyan as the subject.



Happy profiting



M.M.