Your Valuable Views on future status of Market after Bloodbath

brv127 · #1 24th January 2008, 05:53 PM

Dear All,

Please post your views on future status of Market in current scenario.

I guess, there would still drop of 3000-3500 Points in time to come.

Your expert opinions please.

SpeedBall · #2 24th January 2008, 06:39 PM

A drop of 3000-3500 at these levels is too much of pessimism. That is almost 20% reduction from now and about 40% from the peak. I heard someone in news saying that the fair valuation of Indian Markets is at 14,500 levels (purely going by the fundamentals) but there is always a 20% premium over fundamentals that the markets offers. So the fair and best value of markets should be around 17,500. Which we're currently trading at.

Next 5-7 trading sessions are going to see a lot of volatility. Its always good to stay away and be in cash to grab better opportunities you might see. The markets might see a close below 17k once. Do not panic. That is OK.

Fed is expected to cut another 25bps (atleast) next week. Perhaps that would come as a respite for markets as around that time only the FnO's will expire and the traders can trade afresh.

For fresh buying I would suggest accumulate your position at different levels as the market might go up/down from whatever price you buy. It's better to average out the prices, at these levels even the average prices would earn you good. Do not be greedy!

I would strongly support each and every analyst who says invest in the frontline stocks. Currently there is no scope of speculations. Mid cap are going to get another hit soon.
Small cap....rub it out from your dictionaries!

All said, we just have to stay calm...keep cash with us...and do not book losses...

jrfab · #3 24th January 2008, 07:14 PM

Quote:

Originally Posted by brv127

Dear All,

Please post your views on future status of Market in current scenario.

I guess, there would still drop of 3000-3500 Points in time to come.

Your expert opinions please.

Hey dont worry too much ,, our markets are known to give sharp corrections which scares the hell out of most participants

,,, the consensus seems to be that the bottom has been formed at 4450 nifty that was hit a couple of days back ,,,,, now as far as todays correction goes , it was bound to happen as the markets cant go up one way after the steep fall ,,, my guess is that markets could come down to 16500 levels and then maybe consolidate and move up from there ,,, so dont be too pessimistic and buy in small quantities on every decline

kimat · #4 25th January 2008, 04:28 AM

I was waiting for the correction to increase my positions in mutual funds, so I have been buying today.

Venkat123 · #5 25th January 2008, 06:34 AM

Bond insurers need some $200B in capital over the next month or two to maintain their AAA rating on some $1Trillion in insured bonds. The big rally yesterday was because they began talking on how to raise 15B. Those talks seem to have already fallen apart.

IMO, during the US recession, Indian bubble markets will correct 40% from peak. Check what the Chinese and Indian markets did during the 2001 recession.