The previous week, however, was better for bulls and the market recovered appreciably. The market appears to have entered a short-term bull phase with a possibility of again reaching 18500 level. But one must remain careful and avoid aggressiveness in going bullish. The first resistance level of 16500 is very close and market will have some difficulty in crossing it. If, however, the market crosses this mark then the next resistance levels are 17200, 17800 and then 18500. The market is unlikely to cross 18500 mark unless something extraordinary happens. I reiterate my stand that the market has entered long term bear phase and recent uptrend should be considered only as a CORRECTION UPWARD and not the restoration of a long term bull phase. It would be wise to SELL during every upward correction because once the result season in April is over, the negatives would once again start to affect the market badly.
WARNING : The moment the market showed some reversal from sub-15000 level most analysts and broking houses changed the colour of their face and started giving statements like :
- INDIA STORY IS DIFFERENT THAN REST OF THE MARKETS
- INDIA IS INSULATED FROM GLOBAL RECESSION
- THERE WILL BE LEAST EFFECT OF GLOBAL FACTORS ON INDIA
One must practise wisdom and think : WAS INDIA NOT INSULATED FROM ALL THAT DURING PREVIOUS TWO MONTHS ?
I am still bullish on two sectors : (1) IT (2) PHARMA. This does not mean that one should jump in and buy these shares in rising market. I advise to go long in these two sectors gradually and make investment for a long period. Keep an eye on INFOSYS, SATYAM, WIPRO, TCS, HCL TECHNO, SONATA SOFTWARE, RANBAXY, CIPLA, GLAXO, DR REDDY'S LAB, DABUR, SUN PHARMA. Buy good shares on decline with the risk that the market may go down to 13800.
NOTE : This is my last post on this blog regarding market. From next week onwards I will be writing on a separate blog titled : indian stock trading tips.The link for this blog will be available on this blog. The link is : indian stock trading tips
