SURPRISED !!! This is what the market does.

Although quite a lot of traders would have been left looking at the screen as to what suddenly changed in the markets in last 1 week.


Investors with an old portfolio would certainly be happy as some of their stocks have also gone up finally.


Last week had mentioned how suddenly everyone on the street has turned so Bearish that it was a superb setup for a Short term Rally. Also one good line ---

Start of A BULL Trend is always a Bear Rally icon smile Nifty Technical View – Bearish consensus is very high ? A good setup for a short term rally.

Now is this a turnaround – NOT sure but its been rewarding 🙂

Look for the technical and sentimental reasons here -


Now lets look at the Index moves.


From the lows on 2nd January ---

Sensex is up 5.8% on the peak of it and 4.8 %

Nifty is up 6.3% at peak point and 5.3%


Now lets look at other indices.


Bse Midcap Index is up 8-10%

Bse Small Cap Index is up 10-11%


Many of the stocks are up 15-30 %.


A simple example had initiated a view to accumulate LnT its moved is up 17-20% from the lows.


Hindalco gave 10-15% returns


There are way too many examples.


I believe this rally could extend in midcaps/smallcaps and even stretch up to 4900/5100 but that does not imply its a buying advice. As current fresh buying will be of short term nature but our long term view remains of being a buyer at 4700-4500 and lower in any panics to 4300-4400 if at all it comes.


For more of our favorite investment calls and short term advice --- check



Happy Investing,


Nooresh Merani


  1. Sameer
    January 13, 2012

    Were ppl not too bearish when sensex touched 14K in mid 2008?

    1. nooresh
      January 15, 2012

      Hi Sameer,

      Nope at 14k there was hope 🙂

  2. gauri
    January 13, 2012

    sir plz tel me about sriramtransport fin in d near term,its outlook according to u

  3. gauri
    January 16, 2012

    thnx sir wat do u suggest fr now i hv a short pos in it ,it is going up now at 540 now,plz guide

  4. Rajandran R
    January 19, 2012

    Maket is always filled with surprises and shocks. Its good that market had recovered investors money back to their pockets.

    1. nooresh
      January 19, 2012

      Hi Rajandran,

      It was not a surprise for readers on the blog as it was very well explained on how the market was slated for a short term rally –

      So was a shock to some and pleasant quick surprise to others who followed 🙂


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.