On Friday, Nifty and sensex ended up by more than 2% and a weekly gain of more than 7.3 % ,biggest weekly gains since July 2009. All the Banking stocks rallied as S&P assigns stable outlook to 10 Indian Banks.European stocks rallied on Friday expecting the EU leaders to come out with a more credible plan to come out of the financial crisis.US stocks ended almost flat amidst a decrease in jobless claims.Treasuries and US dollar rose indicating concern about this week's EU meet.
Keep an eye on the European developments, as on Friday morning the Asian markets and the European and Dow futures were flat to negative till 12 PM.But after the speech by the German Chancellor, the DAX and the CAC index futures were up by 1.5% which lead to a rally in our markets. US markets rallied on the EU optimism and with a good set of jobless claims,I expected it to close in the positive zone.But finally the markets ended almost flat as the dollar and treasuries rose.
As the volatility is moving up in recent trading days, have a strict stop loss and be prepared to experience the roller coaster ride.We rallied on the day, when our GDP came at lower levels compared to the same period the previous year.And US markets erased the gains on Friday when the jobless claims were better than expected.Be prepared for such gravity defying stunts.
Yesterday,around midnight Iran announced it had downed an Unmanned US spy drone and this came at a time when the tension is escalating between Iran and the European nations.Keep an eye on Oil prices.
Tomorrow is a trading holiday on account of Muharram.Avoid carrying over-night positions.
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