Mkts set for a clean run in the near term

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Mkts set for a clean run in the near term

Markets couldn’t have asked for a better start to the week after what happened on Friday. It was the perfect follow up, 116 points rally on the Sensex and more importantly, all the midcaps and smallcaps were roaring yesterday. So it has been a good momentum start to the week now and we need to pick it up from there.

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Markets couldn't have asked for a better start to the week after what happened on Friday. It was the perfect follow up, 116 points rally on the Sensex and more importantly, all the midcaps and smallcaps were roaring yesterday. So it has been a good momentum start to the week now and we need to pick it up from there.

FIIs are still pumping in a lot of cash, retail and HNI still piling on positions on the futures and options side and there is little bit of deal-sniff in the air as well. Zee has done a deal on Ten Sports, Dr Reddy's is doing an ADR, DLF wants to clear its issue today. So there is some news flow after all to be content with, it looks like a warm week and lively.

Markets closed with a flourish yesterday and I think the bulls have the market, right now. In the near term, there is still clearly momentum visible and the market would have near term upside, it seems. An intraday pullback can never be predicted but it looks like over the next few days, we will probably be at higher levels.

Markets closing at the days highs with good breadth, satisfactory volumes, news flow is not too bad, so I think the bulls have things going for them and the liquidity flows are also pretty strong. I don't know why one would want to bet against the market from a trading point of view just yet. But again, positions are getting heavier with every passing day. So right now, nobody will heap those because the going is good and curiously, this is a cycle.

If positions don't get built up, then one will not find momentum. It will feed on itself and then it will get heavier. At one point, hopefully not, the market might run into a bit of a trouble if something is blowing in the wind. But right now, I don't think it will stop the market. We probably have a clean run for the next few days the way the bulls have been going at it.

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