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Sep 22, 2012, 11.51 AM IST
Sudarshan Sukhani of s2analytics.com explains to CNBC-TV18 that he had suggested investors to buy if they weren't already long which was valid even after the market opened. However Dipan Mehta, member- BSE and NSE, adds that though the market rally was unexpected, it was not based on any fresh political of economic development.
Sudarshan Sukhani of s2analytics.com explains to CNBC-TV18 that he had suggested investors to buy if they weren't already long which was valid even after the market opened. "The market has posted a 140-point gain, but this is not the end of this uptrend. My target is over-6,000 points and the market is much lower than that. So there is no rush."
Sukhani also advises investors to would avoid taking profits on this occasion. "That is a caveat. We all know anything can happen in politics and affect the market. And with no method to forecast those events, it's wise to carry positions. I think the markets will go higher by the time the settlement comes next Thursday." Dipan Mehta, member- BSE and NSE, in his fundamental analysis, elucidates that though the market rally was unexpected, it was not based on any fresh political of economic development. Hence Mehta advises investors to go slow and conduct restrained liquidation of their portfolios.
Below is an edited transcript of Dipan Mehta's analysis on Q: It seems the festive season has come months in advance. What more do you expect in terms of an upside for the market from here? A: Yes and the fireworks were totally unexpected. I think per se, there is no fresh development. Everybody knew that the Samajwadi Party would support the UPA and as such there is no real trigger. But the market seems to have been flooded by liquidity and that has caused stock prices to zoom up. In a market divided into two tiers based on liquidity, the tier-two stocks have rallied to take the market up. But it is difficult to forecast the road ahead for the market. Though it may touch 5, 800 and beyond, I think the valuation will be difficult to support at those levels. So in my view, it is better to adopt a cautious approach. For investors who have been buying in the market for the past say six-to-twelve months and are already sitting with a lot of profit, maybe it is a good time to slightly liquidate a bit. No doubt, the markets could rally further from this point on, but then if you want to participate in this rally, the only way to do so is to dilute the quality of your portfolio.
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