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Market Outlook

Friday, October 16, 2009 Leave a comment Go to comments

When the current  up move started in July, I had written that the current move can really surprise on the upside. I also had a 5150-5350 target in mind for the current move. Usually, I don’t have fixed targets but these are the areas where I focus on risk reduction and evaluate my positions.

Rather than being a runaway rally, this rally has been very steady and has been characterised by regular profit booking at each higher levels.Also another good feature has been the fact that not all stocks have participated. And on top of it, the scepticism about this move is still evident.

All this makes me believe that we might trend even higher in the short to medium term (may be 5500+). The key is to be in the right stocks because if you are in dead stocks, you might not be able to take advantage of this momentum driven rally. If you are a value player, then it might be prudent to remain patient and sit out.

And as I said earlier, this is also a time when you pay extra attention to risk. Catch the big moves but understand when to get out. Don’t just focus on what and when to buy, focus on when to get out. We get  blinded by these large moves on the upside. Read this post written in Jan 2008 just before the market crash.

Categories: NIFTY Strategy
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