Nifty 5,760 Sensex above 19,000 What to do now?

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It's time to buy. It's time to sell. Whenever the stock market hits a big number, advice starts to pour in. What should you do? The answer: depends on what your financial goals are.

The sudden 1,000-point (or 5.5 per cent) rise in the market benchmark, the BSE Sensex, in just eight sessions to cross the 19,000-mark -the first time since January 2008 -can unnerve anyone. But, if trading is not your fulltime occupation and the equity market is simply an instrument that helps you create longterm wealth, the Sensex closing of 19,208 or the NSE Nifty closing at 5,760 on Monday should not mean very much.

If you have an investment plan in place, continue to follow it. If not, make one, and depending upon your risk-taking ability, use equities to give your portfolio a kick. "I don't think a market top or bottom should come in the way of a long-term investment plan of any investor," said Ashu Suyash, MD and country head, Fidelity Mutual Fund.

"Markets can be volatile in short term as the rally is driven by foreign institutional investors and hence investors should be cautious," said Nirmal Jain, chairman, India Infoline. "But since the underlying fundamentals are sound, long-term investors have nothing to worry." FIIs have pumped in a total of Rs 63,961 crore since January 2010, and Rs 4,579 in September alone.

As for as short-term traders or intraday traders and speculators, expert advice is (intraday tips): go large. Growth lies in large and fundamentally strong stocks."We are getting into a period where if it falls the impact would be harder on small and mid-sized companies," said Ajay Bagga, head of private wealth management at Deutsche Bank.

"Hence, one should invest in large stocks and diversified mutual funds."

Over the past 12 months, the Sensex has risen by 18.5 per cent, the highest among major world markets, so short-term investors whose investment objectives have been met, can "book profits", that is sell a part of their portfolio.

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The trend indicates very well that it is bullish, dont think about the global markets and historical charts. lot of liquidity plays in to the indian market, my opinion is as per the trend, nifty will easily reach 6100 . Hedge with NIFTY 6000 CA with 5800 Put, and book profit in both sideS in these type of volatile markets as we have now. Have a happy trading
The past experince has been that we get confused at such shart rises ? If you are willing to take risk - enhace invetments in NIFT ETFs or sensex MFs . The bull has started to use the brute force .... as happened many times in the past . I suggest take a risk and you will make good profits .... good luck
1. Exit all your bad stocks,
2. Book partial profit in overvalued stocks to reenter them when correction happens
3. Think reverse now like u are buying cash with your stocks i.e.
on each rise of 500 points see the overvalued scripts and start accumulating cash
My way is every 500 pionts up i take out 5% Cash my goal when nifty sunsex 22 k will be sitting on 30% Cash to be redeployed on correction.

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