Unprecedented policy response from global policy makers are creating a huge pool of money supply, and it is becoming increasingly clear that this wall of liquidity is going to be parked in riskier assets like Emerging market stocks. Good times are back on Dalal street.Marquee corporate of USA like Google, Citigroup,General Electric, J.P. Morgan Chase, Wells Fargo, and Goldman Sachs –have announced better than feared quarterly results, fuelling bulls to gun for higher levels and infuriating bears further.Six consecutive weeks of gains on the bourses has left indices little frail. Stocks have bounced back with a vengeance and now looks little exasperated. A small correction is in order to recharge the batteries and start a second leg of this rally which has left many scratching their heads.Times have changed and one must take notice of new reality. Here is an example of changed environment and it is also a sing of our times : "Japanese government has passed a legislation allowing the government to buy shares from the market until March 2012 if share prices plunge".Back home, Nifty has a support near 3300, and a declines should be considered an opportunity to buy stocks.
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