Expect further weakness below 12300

We have been indicating a retracement down to 12460-11761-11062 in the last couple of weeks. The low registered last week was 12344 and the week closed at 12844.99. Although, the Sensex had violated 12460 during the week, it staged intra-day recovery from these levels as well. The bounce to 13145 was also witnessed after attaining 12460. The level has its own importance and followers of technicals know the importance of retracement levels and the respect it commands. This does not mean that they cannot be violated or that they end in themselves.

Last week, the Sensex opened at 12716.85, fell to a low of 12344 and moved up to attain a high at 13145.72. Finally, it closed the week at 12884.99 against the previous week’s close of 12886.13. That means the weekly closing was flat on a week-to-week basis.

More about below 12300
Support for Sensex at 12330

Support for Sensex at 12330

MFs await SEBI guidelines for launching infrastructure funds

Mutual Funds await necessary guidelines from market regulator SEBI to launch a dedicated infrastructure fund, which was announced in the Budget to boost the sector that requires $320 billion funding in the next five years.

"SEBI will have to work out details and bring necessary guidelines with regard to dedicated infrastructure fund such as the types of fund, disclosures, limits to enable the Mutual Funds to go ahead with such funds," AMFI Chairman and Member of the SEBI Advisory Committee on Mutual Funds, A P Kurian told PTI here on Sunday.

Finance Minister P Chidambaram in his Budget proposals had permitted Mutual Funds to launch and operate dedicated infrastructure funds, to promote the flow of investment to the infrastructure sector.

"These will be a close ended long term fund with a lock in period of 5 to 6 years and will invest in infrastructure projects like airport modernisation that didn't have securities listed in the market but special purpose vehicles," Kurian said.

Ajay Bagga, CEO of Lotus India Asset Management Company said, "This will be long term funds that will provide infrastructure funding to the country and also investors a long-term growth oriented tax efficient investment option."

Association of Mutual Funds in India (AMFI) had made a suggestion to introduce such type of funds in the interest of both the needs of the infrastructure development and for good returns for the Mutual Fund investors, Kurian said.

Source : The Hindu News Update Service

Market crash: Is it the right time to invest?

Red is the colour of the day is red for the markets as bears continue to pressurise bulls on the first day of week. This is a repeat of Wednesday's crash as Asian stocks slipped over 2% and US markets also ended lower.
jay Srivastava of Dimensions Consulting feels that the market is looking down today and comments on the strategy that is to be followed.

His advice is to get into the market when the time is right and he adds that good companies are right choices to invest at this point of time and not when the market is at 15,000. Srivastava believes that the there is nothing called time in the market and investors have to keep adding to their portfolios over time.

"So sensible advice could be, get into the market when the time is right and so on, actually it never translates, you could see a major negative today, you could see major negative tomorrow. Good companies are right to be invested in at this point in time, not when the market is at 15,000 and so on. To that extent we are always to say that there is nothing called time in the market, you got to keep adding up to your portfolios over time, your income is going up," states Srivastava.

Technical Analyst Ashwani Gujral advises that instead of being jittery people should plan to buy further. He states, "So it is a good place to buy into this market. Instead of becoming jittery, people should plan to buy as this market decline further."

Source : moneycontrol