Home > NIFTY Strategy, Trading Ideas > Should one re-enter Sensex or exit?

Should one re-enter Sensex or exit?

Monday, July 20, 2009 Leave a comment Go to comments

This rally has taken us from about 2500 to 4500 on NIFTY in last 4 months which is a gain of about 80%. Looks very tempting but it would have been nearly impossible to pick the  bottom.

At the same time, one could have entered at 3300+ levels to ride this move. That’s all in the past.

What to do now?

If I were an agreesive trader, I’d jump in as this move can give another 10% without creating much noise. The downside stop could be as low as 3-5%. So there is  great risk reward.

Stock specific- SBI, Reliance are looking great. Even the cement pack is looking great.

This market has the potential to rocket again. But not for the faint hearted!

Markets reward you for taking controlled risks.

Those who are already in should ride it till the markets reverse.

Ride the wave and hope that this becomes big wave. If it doesn’t , get out..

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  1. ReyMax
    Monday, July 20, 2009 at 10:38 pm

    So you are back after a long holiday !

    Good to see your blog up and about once more.
    Best of Luck.

    • sagecapital
      Monday, July 20, 2009 at 10:43 pm

      Rey,
      Thanks for your support. It has been a turbulent year for markets. Sometimes a break is better!
      Infact the events of last year have proved that “buy and hold” is probably dead and carries much more risk.

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