Weekly Newsletter - May 30 2009

May the good times continue!. That’s exactly what the bulls would say after a spectacular May series. Gains were expected after the UPA-led government returned to power with a thumping victory. We may not be out of the woods but the bulls seem to have a nice picnic out there. Given that many deep pockets may have felt left-out in the recent run, there is always a chance of the downside being cushioned by the late entrants.

Wild swings in small and mid-cap counters could lead many to a trap. Getting into a stock is a no-brainer these days. Making the exit seems to be more important, especially in lesser known counters. Revisiting the highs is an expectation which seems to be slowly trickling in. The coming week will bring in numbers on Export-Import as well as auto and cement figures. Global cues will cause swings and so will the tone of the Prime Minister’s team. For now, the ministers literally seem to be talking up stocks giving hope that a lot may be done on the deregulation and disinvestment. These pet topics may remain discussions for long but then when the sentiment is positive who cares!