Market snaps 3-day jinx: Is it time to buy or sell now?

Moneycontrol Bureau

Market has snapped a 3-day losing streak as strong global cues help offset the inflation shock. The Nifty it was a day of green as the markets built on steady global cues. The Nifty conquered and stayed above the 5000 mark to close at 5012.55. The 71 points rise was backed by IT, commodity and auto stocks. The Sensex too closed in green at 16709, up 242 points. Both shaky global ground and inflationary pressures are throwing a heavy weight on Indian market. However, it will be Reserve Bank of India's (RBI) monetary policy review which will be a deciding factor. "I think its now time that RBI pauses and there has to be a balance between growth and inflation and if that were to happen I think that could be the single biggest event for the Indian market to bottom out and see sharp upswing of about 10-15%. Barring that I think it is difficult to take a call on the market as of now. Global events continue to be very shaky and not too sure whether we are still the process of bottoming out or not," Abhjit Chakraborty, institutional equity, Fortune Financial explains. He also feels that China could be playing some kind of a role in stabilising the European economy in terms of buying the bonds from there. Advising to look at stocks which still have a reasonable earnings growth potential in FY12 and FY13, he advises to add frontline PSU banks. Must read: Downside limited, Nifty to find support at 4700-4800: IL&FS Punita Kumar Sinha, senior portfolio manager of Blackstone Group believes that India is better positioned than some of the other global markets. "But the Indian market valuations are not as the 2008 lows or at previous lows whereas some of the European and US market valuations are at the 2008 lows. India is still at a premium to its own history. This means that there is potential for further correction purely on a sentiment and a technical basis if the risk aversion remains high,