October Global Gold prices continue to be under the grip of the Indian equilibrium market prices as Gold prices remain in a low enough range to encourage the festive buying of Gold jewelry into Diali on November 13 this year. 

Crude's dumped but Euro's may start shredding down after only Germany and Italy could survive the pressure ont he Service sector, the European Economy almost shutdown with Frencha nd Spanish Services secotr PMI at 42-43for September. No Trade improvements with China mean a limited upside for the Australian Dollar from the rate cut and thus on the whole, Dollar could remain strong in October and keep Crude higher too instead of falling further from $90/$109(Brent) /INR4800(MCX)

That brings us back to the Equities, which even as Copper corrects at the top of the Economic cycle must continue forward without any sellers. Though volumes in the Bull rally are adequate and the morning has taken the Sensex to 19000 and Nifty to 5800, the sooner the market reacts the FII $3.5 B in September could walk on to even $5 B another month. 

The market is unlikely to turn back before 6000 as most speculative rally bauying was done as high as 5300 and even 5400 levels leaving 6000 as a basic minimum for profit taking. Implementation reports or the lack of them in follow up to announced policy measures will come into play only in Calendar 2013

Bharti is moving up to its due place on the Blue Chip list with 271 on the ticker and ITC has been quite enough to run amok even as YESBANK and IDFC pause at 400 and 162 after a torrid correction induced blue face all of 2012. 

Kotak and HDFC could remain in reaction mode as long as the indices are able to carry on in an upmove preserving possibilities of a rapid run in them later at the buzz times of the rally when speculators enter Axis again. 

 

Posted via email from The India Investment Post