Market surprised everyone with its big move yesterday. This good move before the first quarter results helped by buoyancy in global markets and robust buying from overseas funds is likely to result in a sharp move up over the next week as short covering and money lying on the sidelines starts moving in. However, as things stand now it would be best to treat this rally as a short term one. Results of the first quarter will have a beat estimates for this rally to sustain. On all count this appears to be a difficult task given the headwinds in the form of inflation, high interest rate and soaring raw material prices. Hence it will be best to use this rally to get rid of stocks where prices have gone ahead of fundamentals. Increasing liquidity in portfolios will always be helpful as market is likely to become volatile once results start pouring in.
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