The NAMO rally has really lifted the investment moods. The market is at all time high, with many stocks now on their 52 week highs. The IPO market is beginning to boom and investors have piling amount of cash being invested in India, thanks to the expansionary policies followed in EU and USA.
These are speculative times, be cautious and always remember the law of averages would bring speculated stocks to their right prices
Their are 3 situations arising
1) Who have decided to rock the boat with NAMO budget 2014:and bullishly positive on the economic outlook: NAMO as we have all seen, is a master in marketing and very likely would continue to keep upbeat with the market sentiments as uptil now. Exit stocks that have no good fundamentals and have risen only on speculations,book profits. Markets will consolidate and will give plentiful opportunities to get in.
Keep value stocks and go long (PSU's esp).
2) Who want to join the boat : Invest in defensive stocks like FMCG and some exposure to perennial stocks of pharma and IT(Upcoming Infosys results will lead IT fluctuation) . Intraday day is a good bet as we can expect highly volatile markets.Let market sentiments consolidate and picks stocks that show structural growth in quarterly results.
3) Who have accepted peace : Exited before budget anticipating a below average 2014 budget: Great choice! now get set to see the market dancing. Observe budget carefully. Also short stocks that have risen on purely anticipation but did not deserve NAMO interests in this budget. Consolidation is inevitable.
Smart Investor is always abreast with Business news. So keep yourself updated and adapt accordingly. Happy investing.
These are speculative times, be cautious and always remember the law of averages would bring speculated stocks to their right prices
Their are 3 situations arising
1) Who have decided to rock the boat with NAMO budget 2014:and bullishly positive on the economic outlook: NAMO as we have all seen, is a master in marketing and very likely would continue to keep upbeat with the market sentiments as uptil now. Exit stocks that have no good fundamentals and have risen only on speculations,book profits. Markets will consolidate and will give plentiful opportunities to get in.
Keep value stocks and go long (PSU's esp).
2) Who want to join the boat : Invest in defensive stocks like FMCG and some exposure to perennial stocks of pharma and IT(Upcoming Infosys results will lead IT fluctuation) . Intraday day is a good bet as we can expect highly volatile markets.Let market sentiments consolidate and picks stocks that show structural growth in quarterly results.
3) Who have accepted peace : Exited before budget anticipating a below average 2014 budget: Great choice! now get set to see the market dancing. Observe budget carefully. Also short stocks that have risen on purely anticipation but did not deserve NAMO interests in this budget. Consolidation is inevitable.
Smart Investor is always abreast with Business news. So keep yourself updated and adapt accordingly. Happy investing.
