We Forecast .Markets Decide ..

Lot of news coming in which has affected markets today with quite a big drop on Nifty [110 points]. "The U.S. government stands poised for its first partial shutdown in 17 years at midnight tonight, after a weekend with no signs of negotiations or compromise from either the House or Senate to avert it. " "The current account deficit came in at 4.9 percent (vs 4 percent YoY) in the first quarter of 2014, inline with street expectation. Experts called it a "mild positive" saying the deficit stayed high due to rise in imports. In absolute terms, CAD stood at USD 21.8 billion in Q1 against USD 16.9 billion in the corresponding prior period." I remain short on the Nifty [ as discussed last post Profit : 150 points ] with targets of 5600 [continue to hold the position] . Any correction should be taken as an opportunity to short again . My EURUSD Short position [ as discussed last post Loss : 20 pips ] somewhat coming under pressure right now [there was gap

As Earning Season kicks of next week , many of us anticipating how the results will be , with economy struggling to grow i dont think so numbers will be good enough . Markets may at best consolidate around the current levels as earnings reports, which are not expected to spring any positive surprises, would be in focus during October while the general elections would become the main focus in November or April next year . Nothing much to speak with Mr Rajan surprised markets in his maiden policy review last week by raising interest rates to ward off rising inflation, while scaling back some of the emergency measures recently put in place to support the ailing rupee. From a medium to short term view markets may not perform in the current months , with not good expected results from corpororates , falling rupee , inflation and widening deficit . The US economy is showing signs of improving and the Federal Reserve continues to propel QE3 at $85B/month.With economists predicting an impr