Friends,
I am addressing you from out of my base station Ahmadabad (India) after a long time over the the matter of markets’ movement. There has been a lot of improvement in indices and everybody seems to have shed some part of the fear of impending slowdown. The RBI Governor has not acted in the manner that he was giving idea of , in light of the inflation pressure ie of raising the ’repo’ rate. This may have been due to yet another interest lowering by the US Fed by 25 basis points. He , however, showed concern by 25 bps increase in CRR. I think CRR will not be affecting the economy in general but would affect the banks in some measure.
There have been a spate of results but it is mixed bag. There have been good results and bad results but none has been with some drastic impact. It can therefore be said that market would hover round this level ie around 5250 and will be tilting one way or the other after it notices some important trigger down the line.
The best strategy would be to encash profits partly and stay invested with the rest. There is risk in being over optimistic ,however, some companies have attractive prices to be invested in right away. Please keep track of such companies through ‘panch-tattva’ guidance.
HariOm,
krsnaKhandelwal
