Wednesday, March 11, 2009

Stock Market - What's wise?

Indian Stock Market has been playing with the emotions of the investors. Its been fluctuating ever since it touched the peak. Though BSE sensex has been hovering around the 8000 mark and been gettitng the support around that, the month of March does not seem to be the time to be providing any assurance to the investors. Market experts are expecting selling pressure by FIIs during the month. This certainly might trigger a short term panic in the retail sector investors, but is it really a news to create Panic?

I see it as not, what I see it as n opportunity for the Retail Investors to put their money at the right plays and hold for a longer term. The stocks would see more corrections in March-April duration and Retail Investors would be able to get good deals on the various stock. It would be a worth to invest during the plummeting times if one is looking at Long Term Investment and not just simple Buy / Sell trades to earn short term profits.

I would see market getting slightly below 8000 mark by the month end and be hovering on that range for next few sessions. Though I would not be surprised to see market plummeting to 7500 by month-end. But all this should not be a worry for the Hold Positions and Long Term Players.

One thing that I would opt out from would be Short-Sellling that could be really tricky in these situations as the Promoters and Directors may step in to buy shares to gain support for their Company's stocks and send a message to the market that we are doing well to face the turbulent times. And yes it would be advisable to follow the buying pattern of stocks one is watching and if the Board Members / CEO / CFO buy their respective company's stock, its worth Buying that stock.

Risk and Caution are something that one needs to always keep in mind while investing in Stock Market.

1 comment:

  1. Well, i partially agree with you that market is at its lows but still new lows are to be seem given the the socio, economic and political uncertainities in India and world-wide. The major events that will have impact are elections in India, Pakistan's terrorism, Iran issue and the overall economic performance of Asian countries.

    Economies of developed countries might worsen and even economies like India & China might get hit. If the fore runner Asian economies also get hit then it would be a vicious cirlce. As it is countries like US, etc. are highly dependent on Asian economies.

    Year 2009 might be bad as all the researchers & economists say. But yes this bad scenario will definitely given good opportnities too and here long term invstors can get good deals..... after all it's all about making right decisions at the right time.