Correction is near. Book profit and be ready with cash for fresh buying. I am exiting all my short term stocks, where I am earning 10-15%. Chances of correction are more now -
Reason:
- Two Big IPOs DLF and ICICI Bank is going to list in near future.
- High Bank interest rate (Liquidity crunch)
- Rupee appreciation is impacting IT and other exporter's earning (Only big exporters can survive).
- Low sales of retail and commercial vehicles. (Auto stocks hitting 52 weeks low)
- Cement stocks not good due to Govt. export ban.
- Infy and other IT stocks first quarter results would be coming this month, if they are not as expected by market, then market will react negatively. IT stocks are already hitting bottom if they further loose ground then we would see blood bath.
- Now only neutral stocks like Reliance capital, RIL can move the sensex up but how much?
I would come up with my stock list and their price band in which you would enter after correction.
“YOU SHOULE NOT BE IN THE MARKET ALL THE TIME. THERE ARE TIMES YOU SHOULD BE OUT OF THE MARKET FOR EMOTIONAL AS WELL AS ECONOMIC REASON "
JESSE LIVERMORE
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