Market Comments - Another Milestone Achieved

Bulls achieved another milestone in just 4 days. We may see a new record of 1000 points in one day if this pace continues. I had given two probable scenarios of markets correcting at current levels or then markets racing to 19K and above before correcting. I had choosen the first option as the most probable but bulls wanted to prove me wrong. This is democracy and so majority opinion counts and hence I have no problems in relaxing and watching the show.

Dollars are raining and it is pouring like as if there is no tomorrow. All fundamentals are being kept aside and there is just mad rush. We are hearing of a even a pan wala now talking of stock markets and papers reporting about how records are being achieved.

I have seen some investors making 40 times returns in one year in one stock but they do not want to book profits and they say they will do so after 25K is achieved. Are we not ignoring the fundamentals? How long can we do this?

Just 6 months back analysts were saying that our markets are bit expensive at a PE of 15 to 16 and now when we have a PE Of 22, people are ignoring this and instead saying target of 22K as next and 25 K after that. Remember that the same FII who are investing now can pull out their money in a jiffy and markets will literally crash if they do so.

I am not being pessimisstic in my approach but just giving enough caution. I still believe it is not going to be easy to scale 20K mark but if you do not want to miss the show then enter the markets for short term basis and try to play safe. Always keep 75% of your capital ready to enter after the correction.

Play with only 25% of your capital now as the Firangs are in a great mood to invest. You too can enjoy the show but be cautious as we are now playing in the market throwing caution to the wind.

I have updated my targets for the stocks in my previous post. Please keep posting your comments about this blog and I think very soon my blog hits will catch up with the sensex :)