Sunday, September 11, 2005

Life at 8000

The Sensex has been behaving just as I predicted in my earlier post, but for how long. Well we have seen a short term correction a week or so back and sensex had no problem in jumping back(again just as I predicted) but can it repeat the feat at 8000, the fall this time could be steep and for extended period when the institutional investors will try to book some profits( which they will at these levels) so how should the small investor play his game, I think the small investors should book their profits now(before FIIs) and then buy back when the markets fall say 200 - 300 points as the market will again jump to a new high.
What makes me so confident of the revival? well, its a belief that FIIs dont think like the day traders, they invest in a market only when the fundamentals are correct and there is large scope of growth, and none of the two factors have changed, even at 8000 the BSE sensex is more attractive than the stable(or stagnant) American or European markets., so the FIIs will again come back and this time in more numbers pushing the markets to a level of 8750by the year end.