As per our fresh calculation , I would like to repeat myself with the same view that the market is yet to bottom out.
The market will give reaction on major market cues as Global market behavior , Economical policy , Govt Plans & policies , Company 's results , Inflation Figures , IIP No.s , GDP Figures and so on. But that would only give acceptable percentage of fall and growth. We can see relief rally in between also.
Major fall to bottom out the market and approx level for Sensex is estimated at 6000- 6500 levels would only be achieved by occurrence of any catastrophic event as serial Bombay blast of 1992 or WTC attack of 2001 , which will create sudden panic and will make a new and final bottom for the market.
At that point investor as well as traders will get an opportunity for value buying , provided they are left with some liquidity.
Summary:
1.The whole view could be summarize that we should remain on cash to have value buying at point of sudden panic and that too probably by end of March 2009.
2. If we are stuck in any stock (selected stocks only) from long time, we must exit from it immediately at present level to cower the same at lower level in panic to get benefited from the difference amount in this volatility having the same portfolio. This strategy would also be useful for those who do not have additional cash to invest during panic.
Note : NMDC is one of such stock as mentioned in point No.2
Attention Members !!!!!
For the value buying picks during panic registered member can email me to get the list of same , while unregistered member can have spot registration to avail the privilege list of value picks to make short to medium to long term gain.
Email : ommansarovar@sify.com