Markets likely to rise and suck in retail investors again

Liquidity inflow into our markets is very robust and doesn't seem to be ebbing in the near term. This coupled with positive triggers like good economic and corporate growth numbers, better than expected recovery in the western world and potential value unlocking opportunities existing in a number of leading corporates makes this uptrend very stable and secure. In fact at this stage it is nearly impossible to conceive of our markets going in for a major correction. However investors need to keep in mind that markets usually peak out only when the going seems very good. We forecast the markets to move higher in the coming few weeks and reach a point of euphoria soon. It will be extremly difficult to resist putting fresh allocations in the markets from here on. We have been bullish all along while markets were range bound for the last couple of months. Our advise of buying on all dips was in anticipation of this break out. Having managed to finally break out we recommend investors to use this current upswing to reduce exposure to equities. Markets are nearly certain to move higher in the near term but we advise investors to keep booking profits on every rise. Try and increase liquidity as much as possible as we expect this rally to be a terminal move before a major correction sets in. The pull back after this period of buoyancy is going to be the time for making fresh purchases. As investors you need to keep increasing liquidity so that you can take advantage of the buying opportunities which the markets are likely to throw up during a crash. Hence keep booking profits on every rise.