Tuesday, December 16, 2008

Indian markets and you

Market is gaining strength with good buying coming in from the FII and DII.Has the market bottomed out?.Are these the lower levels for the market.Is there any bad news coming in to take the market lower.Not sure about all that but it looks like there is lot of value buying coming in at the lower levels.

The next set of news can be seen in terms of the quarterly results.Which are expected to be worse.It has to be seen if the market has already factored in those results or will the results be much worse pulling the market down.Q4 results are expected to be lower but might be better than Q3 as the huge fall of commodities would reflect more in the Q4 results which would increase the margins of the companies overcoming the sales.So it can be expected that the market has already found its bottom or may find its bottom when the Q3 results come out.

Apart from the market it is very funny to see how the mood of everyone changes with the market.When the market is going down,it all seems as if the we would loose all our money and is better to get out by selling atleast at breakeven.When the market is going up,we feel oh my god why didn't I buy at lower level,why did I have the fear at that levels.

I guess one has to be very specific in markets by defining themselves what they are.If they want the returns immediately then they are traders and they would be looking for returns within a day to a week.Hence they should be looking for news which might come out in that week and hence decide how the market would react for them.If one is medium term of 2 to 4 months then one has to think in the same terms and should not react for daily news and swings in the market.

1 comment:

Rekha said...

Hi thanks for your informative article. Its good & helped me a lot to understand the stock market in India.

 
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