We receive many mails and calls for the queries:
– Market is moving up sharply, should we invest now?
– Market may go further up, we would not be able to invest than.
– We were waiting with money in hand to invest when market goes down but suddenly it started going up sharply, what should we do?
Here are answers of all your queries.
Everything that goes up sharply has to come down.
Remember this quote while trading or investing in Stock Market. Market is going up sharply but this is false rally or we may say it is pre-election rally. At this time, Market is over bought, so it is the time to stay away from new investments or trading (Intelligent trading can surely be done to book profits) as market has already seen a upmove of 20%.
This type of market movement is seen before the time of election. It doesn’t means that bear has ended. When the effect of recession is been seen globally, how can bear end.
Market may further see upmove 100-200 points for nifty. But EquityPandit.com suggest not to make fresh investments at this time else you may be trapped and chances of losses are more. This type of movement may be seen till April 1, 2009.
We don’t say that market may come down sharply, but it has to come down as elections are ahead.
What should be strategy for trading now?
One should book profits, (sell your stocks, if you find profits) at this level. One should take out money and even if market goes up by another 200 points, additional risk associated with the rise should not be taken. But we would still say market may be tracked sharply as some good trading opportunity would always come there (only for aggressive traders).