Daily Market Strategy:- Stretch marks! Fed flags concerns After a day of gains, the market may find it a little difficult to stretch itself to higher levels thanks to a kind of jolt the Federal Reserve gave. Strangely, the Fed warning mentioned social media and biotechnology stocks as being substantially stretched. Wall Street of course reads it as the Fed wanting to call it a bubble though it didn’t use the ‘bubble’ word. Yellen reiterated the Feds intention to keep interest rates at historic lows for awhile longer. As a result, the Dow which had perched itself briefly at record highs saw its gains evaporating and ended flat. S&P was marginally down while the Nasdaq lost ~0.5%. The outlook is a flat start. CMC, Federal Bank, Kotak Mah Bank results will be in focus.The market may again look towards global cues even as individual stocks will swing depending on the numbers. Besides the monsoon, the perception now is that a lot of macro factors are likely to fall in place in the coming months, which should augur well for the economy and the market. After a kind of froth in many midcap and small‐cap companies, investors will again look at taking positions in quality large cap counters to avoid any short‐term negative surprises. slinvestments.in
Posted on: Wed, 16 Jul 2014 04:27:28 +0000
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