As mentioned in the previous post, a technical bounceback of the sensex is on the cards imminently. As all the technical parameters are also showing an oversold scenario. With the US markets ending their losing streak on Friday, Monday onwards we can expect some traction in our markets as well...Not to say that we cant fall further but it would be preceded by some gains on the indexes. It is also interesting to note that stocks (even some mid and large caps) have started to quote at dividend yields of 10% +, that basically means a 10% return with appreciation on capital (assuming cos keep on growing) For me personally, Friday was the day of shopping, wherein good opportunities were available at very very reasonable rates. Also another point to note is that not all stocks would bottom out at the same time. For e.g. SBI had formed a bottom at 1000, when the markets were at 12-13000. Now with the markets at 10,500 SBI is sitting pretty at 1350 odd. So if one sees value it might not be such a bad idea to nibble a little..... carefully though!!!
12 October, 2008
Subscribe to:
Post Comments (Atom)
2 comments:
well this market will end in 2009
Well its hard to predict the exact top and bottoms of any bear market, but from a short term perspective we were extremely oversold, and hence the sharp bouncebacks that has been witnessed. It is interesting to note that we are 9 months into the bear market and still arent showing much signs of recovery.
Post a Comment