Retail Investors!! My sincere appeal - Do not Panic!! Panic Selling will be of no use. It is time for you to sit back, track the stocks closely, observe the movements carefully and make money out of your observations. And if u have cash now, you are the king!! Indian markets are fundamentally attractive and alluring. It might take another six months for the markets to start moving up again.
2010 would be a very good year for Indian Markets. The macroeconomic environment is likely to change. India's oil bill is bound to go down as domestic oil production from KG basin would change the entire scenario. This Oil would reduce India's oil bill by a whopping 50%. This means less trade deficit and reduction in exchange rate volatility. The results of world wide bailouts would be felt in another few months.
BSE SENSEX would be range bound (9000 - 12000) for another six months. It's high time retail investors keep their cool, exploit this range and make cool money.
Few Tips:
1.Invest in blue chips for the time being
2.Follow a systematic and phased investment strategy egs: Invest 20% at current levels. Invest another 20% at slightly lower levels of 9500. Invest another 40 % when market stabilizes around 12500.
3.Always try to maintain a cash position of at least 10% to pick up value stocks then and there
Follow this strategy and you will get wonderful returns over the next 12- 18 months.
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