Next week stock market trading…12100 to 14000…
In next week dip in the market was warranted but given the liquidity in the market a fall seems unlikely. Most people are waiting for theSensex to fall below 12600 levels to start buying. “If the news flow is good and global markets do not correct too much then maybe waiting for that 12,100 might appear as frustrating as previous waits to buy at certain levels have been.”
Normally, one would have expected a bit more of a retracement and that may well happen if the global markets warrant that over the next few days. It is not inconceivable that the market fundamentally speaking may retrace to the 12,600 kind of levels atleast in the near term. The problem with that expectation is that almost everybody is now waiting for the market to hit 12,100 before buying. In the last month every time people in the market developed some kind of a consensus a buying level has never come. People are left out, they do not have the courage to go out and buy at 14,000 on Sensex and in many cases it is justified because valuations seems a bit stretched in many names. So they are waiting for a dip. But the problem is that when everybody waits for a dip that does not happen. On
So fundamentally speaking a dip is warranted but whether liquidity will permit that to happen is another matter all together. So wait n watch news comes from New Delhi over the next five sessions. If the news flow is good and global markets do not correct too much then maybe waiting for that 12,100 might appear as frustrating as previous waits to buy at certain levels have been.
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