Markets are turning out to be extremely boring and restricted to a narrow range for the last couple of trading sessions. We are likely to continue moving sideways for some more time as we consolidate before breaking past the previous highs. We may give up some of the gains made over the past couple of weeks before doing that. Action is likely to be more in the mid cap space in the near term. Buying on dips remains the best strategy in this market as we believe that after his lull period markets are going to head higher. Return of panic in the international scenario is the only major risk going forward. Even if this anticipated up move does not materialise and we break this trading range on the lower side, the downside from these levels is not likely to be significant. Moreover markets are not likely to sustain at lower levels for long as there are significant funds waiting to enter our markets on declines. Hence the risk reward scenario is extremely favourable. Banking, auto, cement, IT, metals and capital goods remain the best sectors to bet on. Hence do remain invested with oodles of patience to ride through this dull phase.
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