Thursday market outlook

The markets are likely to follow the path of least resistance, and that is the way down. The US markets cracked yesterday after Wal-Mart unveiled its massive discount strategy for the upcoming holiday season and seasoned analysts turned cautious on the banking sector. After the markets closed EBay disappointed and Amgen had a bad news to tell. Asia is generally down.The discount in our markets turned to a premium as some punters covered their shorts. But FIIs turned aggressive sellers. In our markets, the bank results are likely to be buoyant and that is one sector that can shoulder the responsibility of supporting the markets. But increasingly it is becoming clear that traders may actually sell on good news. With Telecom down in the dumps, it is the turn of cement to go to the cemetery. The mid-caps, which have given you fantastic profits, will now any day begin a series of lower circuits. So replace greed with caution and turn those paper profits into real ones. Take your profits and losses and relax as the world crumbles around you.Though some counters looks good at these levels.Scrips like kirloskar brothers,Austin Engineering Company Ltd looks a steal at these levels.