On G-20 meeting:

People are a bit confused about what to expect from governments in terms of this stimulus plans and packages right now. There is just too many of these going around in China and in the US and frankly that is created in air of confusion rather than resolving matters but people were hoping against hope that something might happen because delays are so expensive now that it is not good enough to say we meet again in April because three months in this market or four months in this market is like a decade. You want to do what you have to do or can do right away and not delay saying we will debate toss it over in our heads and comeback many months later and try and do something.

I am still hoping that some countries might actually go ahead and do something this week because if they do not, the market will be quite unhappy. It is already confused with the policy action because of the flip-flops, which has happened.  The market needs a little bit of a crutch right now and constant crutches; the fact that you did not have any kind of a shrugging off actual action which is taken I don’t think it has concrete stimulus package or no tax cut or no interest rate cut, might frankly leave investors a bit disappointed about the G-20 Meeting statements of intent are fine but this market is much time for statements of intent. So it was a little bit of a disappointment out there, I think it could have delivered more for financial markets at least.

Our market performance on Friday and today:

It is not looking good out here, I don’t know about this morning whether it rises a bit with the Asian markets but I don’t know whether it is showing any kind of strength at all. The disturbing thing also is that those Foreign Institutional Investors (FIIs) sell numbers are now once again becoming Rs 700-800 crore, Rs 100-150 crore was fine but 2-3 days on the trot, you are getting USD150 million-USD 200 million and you are getting that sinking feeling that -Is another couple of billions on it’s way out starting last week. So that I think would cause a little bit of nervousness once again, there is not too much by way of buying, which is happening in any case.

We closed at 2,800; I think people will still wait for another 100 points on Nifty before being aggressively bearish. This zone of 2,700 to 2,750, which we might see at some point during the day, traders would watch extremely closely, if that is broken then the chances of a retest are very high. It is not a simple call; people are saying what the big deal about 2,700 to 2,250 is? - But it is 20% on the index.

Nowadays things move so fast that we lose perspective. From the current level, if you had to go back to the October lows then we are talking about more than 20% on the index, which means many stocks would go down 25%, if that were to come through. So that is a serious downside from these beaten down levels and I think it is a question worth pondering over yet, on whether we are going to break this zone of 2,700 support and go down to the October lows. But with every passing day that looks like a possibility that you cannot ignore more so because the technicals are worsening once again with the FII numbers, which are coming in.