Strategy 2012: Fixed income first half, equities second

Moneycontrol Bureau

Market was back to its old miserable ways after raising hopes of a year-end rally. We saw deep cuts in trade as the day spelt weakness throughout.
After yesterday's consolidation, which was expected, most investors would have anticipated the uptrend to resume today. However, the Nifty struggled to keep up the 4,700 levels losing 45 points, while the Sensex too lost 146 points to close at 15,727.
The weakness only underscores the strength of the ongoing bear market, which is getting stronger with each passing day. The crucial support for the Nifty is at 4640 or thereabouts, and if that gets taken out and we go below, it may be seen as end of any sort of an up move.
Ahead of expiry, one did expect some kind of volatility, but as Dilip Bhat, joint MD of Prabhudas Lilladher admits, the weakness that we are seeing right now was unexpected.
"Maybe we will see a pre-budget rally over next one or two months. I do not know when that is going to happen, but beyond that, over next six to nine months, I still maintain that markets will still seek lower bottoms and possibly we can still see index correcting right up to 4,000," Bhat told CNBC-TV18.
The year has been marred by slowdown concerns in emerging markets followed by concerns around US growth and ultimately questions around the survival of the euro, resulting in large sell-offs across all markets.
Coupled with that, the recent rupee depreciation and government's dillydally attitude towards reforms has only added market woes.
However, at least the macro concerns