Weekend Market Comments - Bears in Control

I will be posting my weekend market comments on every saturday for weekend surfers.... :)

Markets Corrected yesterday as I had mentioned that we were in high risk zone and correction was badly needed. Markets have run up so fast that even our FM was concerned about the rise.

Whenever anything rises abnormally then there will be correction and then pause. Fewe months back GMR Infra moved from 750 to 1000 in 2 days time and since then it is struggling around 800 levels. GMR Infra is a good stock but it has run up way ahead and hence it is consolidating now. Those who bought it at 1000 levels will have to wait for some time before it moves up.

Similarly Sensex has moved up way ahead and it is time for correction and then consolidation. The earlier it corrects the better or else it would be a vertical crash if it moves up higher and higher without correcting.

There seems to be good news on the political front with govt not trying to poke left parties and hence mid term elections are ruled out for now. However every rise in market now will be met with profit booking and hence we will see correction next week. Remember that market had risen even when there was bad news and hence the reverse should happen now. It will correct even on good news and if there is even sligh amount of bad cues, we will see more drop in the sensex.

IFCI is one stock which is going to test your patience and those who bought it at 100 levels will have to wait for 4 months atleast before clarity surfaces. Those who have bought it at lower levels and have booked profits and kept zero cost stock can try to add more at lower levels and sell at higher levels.

Focus on Powergrid corporation and try to buy it in the correction mode. It is surely a good stock for decent returns in next 1 year.