Home > NIFTY Strategy > Are we ready to trend up?

Are we ready to trend up?

Friday, February 1, 2008 Leave a comment Go to comments

These days investors are actually realizing the futility of predicting markets. As always,it is moving against the expectation of the majority.

Today was a good day with NIFTY closing above 5300. I know the sceptics might term today’s move as the one with “low volume” but all upmoves start like that. So I’d say that today’s move was encouraging for the bulls.

The short term trend is clearly pointing upwards while the medium trend is still down. So an aggressive trader shall start buying now so as to be able to capture the most of this move whereas a conservative investor might enter after 5700 gets crossed.

Does this mean that all the risks have suddenly vanished? Not at all but investing is all about taking measured risks.Sometimes you win while sometimes you lose. At the same time markets are forming a base between 5000-5050 levels.

What I find encouraging is the “extreme pessimism” in the media about the state of the markets. This kind of things happen when markets are hit by “unexpected events”,similar to the ones Indian markets experienced last week. And now everybody is expecting another “big fall” and is scared. Usually lightening strikes when no one is prepared for it and not when everyone is expecting it and well prepared for it.

So who knows that we see new highs on markets by the end of this month? I for sure don’t know that but I am also sure that many of the market commentators who claim to know that actually “don’t know” that.

So the best strategy might be to follow the trend and stick to quality. This might be a good time to clean any junk in your portfolios. Some of stocks we hold might never recover from this crash, so it might be a prudent strategy to get rid of them and be in cash.

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Categories: NIFTY Strategy
  1. Hozefa Chhatriwala
    Monday, February 4, 2008 at 11:58 am

    Dear sage

    What about the other stocks.

    Awaiting your valuable reply

    Best Regards;
    Hozefa Chhatriwala

  2. Murtaza
    Monday, February 4, 2008 at 9:09 am

    @ Hozefa

    Fortis – Fortis Health Care – ICICI Bank has given a buy call @ 80 with tgt 96 in the next 3-6 months under the heading STOCK OF THE WEEK.

    But as I have seen previously, ALMOST religiously, the ‘Stock of the Week’ achieves the tgts in say a weeks time max unless and until something untoward happens.

    You can hold on at least with a tgt of 96 i.e. if the Fortis u r talking abt is Fortis Healthcare.

    Regards
    Murtaza

  3. Hozefa Chhatriwala
    Sunday, February 3, 2008 at 6:12 pm

    Dear sage

    Please advise me your valuable suggestions for the following stocks that I hold.

    Fortis @ 101
    Parsvnath @240
    Sparsh BPO @175
    House of pearl @ 275

    As usual Your valuable reply awaited

    Best Regards;
    Hozefa Chhatriwala
    Kuwait

  4. sagecapital
    Sunday, February 3, 2008 at 1:16 pm

    Exit them on every rise and put your money after good large cap stocks. I’d still recommend a Reliance Inds, SBI or L&T. That might be a prudent strategy to recover your losses in a faster way. Buy something you have “heard of”.
    The problem/risk with penny stocks is that offer limited liquidity during market reversals.So one should enter such scrips only if one is aware of the risks.

  5. Jenis
    Sunday, February 3, 2008 at 11:48 am

    I have too many junk or say peny stocks which r down almost 60% down . What shall i do . Shall i exit them with a loss or keep . If exit than where shall i invest this money. Thank you.

  6. sagecapital
    Saturday, February 2, 2008 at 9:53 am

    600 is the support but this seems to have entered into a downtrend.

  7. Shyam
    Saturday, February 2, 2008 at 9:49 am

    Sage ,
    Namaste !
    I have entered THERMAX 20 @ 630 considering as a support, presently it is at 600 , please can you guide me where is next support for THERMAX.
    Or should I exit ?

    Thanks
    Shyam

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