Monday, February 14, 2011

Sensex up 473 points

Today sensex up by 473 points rises most in 4 months. The pull back is expected due to over sold and can hold still budget.Global cue was also suppotive after Mubarak's exit.

3 comments:

  1. This is exactly what I had expected... :-), when Nifty touched 5200 levels. I dont think the global factors really influenced the market movement, because, globally, the fundamentals have not changed during the weekend. And it is common knowledge that whatever happened in Egypt did not have any influence in Indian share market.

    This is the reason, one should not believe in the news every time. Some times or most of the times, news is tied to a market action posthumously. :-)

    Last week, when our market was touching 4-5 month low, US market was touching new highs.

    Fundamentally NOTHING has changed for a stock to be beaten up by more than 5% on thursday and for yesterday the same to go up by more than 5%. This is the reason one should become a value hunter and ignore such news in the short term.

    For instance, take the case of Unitech, it is now beaten down because of 2G scam. At most, they may levy penalty and these providers would have to cough up additional cash from their kitty. So all these things happening now would only be history in 3-5 yrs down the line and market would not be worrying about it in 2 yrs from now. All the bad news are already factored in the price by now.

    So, anyone with a long term view should take the current downtrend of the market as an opportunity and enter with a long term view!!

    Just an update on my Nifty position, I covered half yesterday @ 5380 (120 pts profit in 2 trading sessions) :-) and holding the remaining...lets see how it goes today... :-)

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  2. Congratulation great call Selva regarding your Nifty Position. Entry and Exit timing in stock is the key technique if you master that your the leader in trading this not specify for long term investors.

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  3. Thanks Amit. Yeah., that was a good entry., and I was quite fortunate. :-) I wouldnt say I have mastered it but learning and I hope improving for the good. :-)

    One lesson I have learnt is that, we, the retail investors dont have to be too much worried about the news that flows in the short term. Pick the good companies and if they are beaten down, we should boldly buy them...

    Since Im more of a technical trader, this approach helps me a lot.

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