Friday, July 11, 2008

Gulliver and the Lilliputs - Sainik

The markets are at the crossroads now at 4100+ levels on the Nifty. While the bulls are expectant that a significant bottom has been achieved around 3800 levels, the bears are convinced that it's only a matter of time before this breaks and then 3300 will be in focus .

While Infosys has reported better than expected results, this has still has not helped the "bull case". Most market men are expecting inflation numbers and IIP numbers to be lacklustre at best, and horrendous at the worst. The biggest ally for the bulls is not Infosys, not lower inflation numbers or higher IIP numbers, but the one and only Reliance Industries.

For the bulls to rejoice and the bears to scamper, Reliance has to wake up from its deep slumber, a la Gulliver . This is the only prayer that bulls should have on their lips.

While the bears (Lilliputs) are convinced that Gulliver will never wake up, the next few sessions would provide the answer. Currently Gulliver is resting at 2035 levels. His wake-up time is 2070 (not the year, but the pricepoint).

This Claimer: I am on Gulliver's side.

KM

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