Home > NIFTY Strategy > Long live the uptrend in 2008!

Long live the uptrend in 2008!

Thursday, December 27, 2007 Leave a comment Go to comments

In many ways this market is reminding of 1999 days when the end of December was extremely good! That was the first time when I had observed that what the “media writes or says” is not always correct. “The FIIs are sleeping”, “Markets shall be rangebound”- I used to hear exactly the same noises in Dec 1999.

In some ways the euphoria is also similar!

I hear a lot of news in Financial services being the hottest sector and stock markets being the easiest way to make some quick money 🙂 . Also people are feeling that there is “no way” you can lose in this market!

Not bad for my business but some bad signs for the individual investor . So easy to get trapped. So should one get cautious and just sit in cash?

If you went into an Adani Enterprises at 300 bucks and are riding it all the way to 1050 in less than six months, your job is easy as of now. But historically this market goes bad in the March to May timeframe. It might be because of pre-budget hype built in the market.

I’d just suggest you to be extra cautious this time.Your job is to preserve your gains and not get over leveraged if this market goes to ridiculous levels. 7000+ on NIFTY is not something which will surprise me. I had written about 6300 levels by December end and we seem to be very near that.

All I wish is that this uptrend lives for another couple of years. At the same time, you should not forget that one can easily get corrections as deep as 50%!

I am also happy to see the emergence of the “local investor” and this is just the beginning of a trend. In next 3-5 years we might dominance of “local money” in the Indian equity markets.

Next big trend might be the emergence of “individual investor/trader” in the Indian stock markets. I feel that sooner or later the returns from MFs shall become “average” or “below average” and this will see more and more individual investors jumping into the markets!

My best wishes for the “individual investor” in all of you. May all of us grow wiser to take care of our money and be wealthy!

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Categories: NIFTY Strategy
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