Sensex just closed down 460.03 points (2.72 %) at 16415.76 and Nifty dropped to 4921.40,down 144.80 points (2.86%) reflecting Global Blues and cues…..Volumes were relatively high and this does not augur too well for the immediate short term…tomorrow’s opening may just be weak too
There was red ink all over,with just a few specific stocks in the green…of the Sensex 30,27 were in the red with Tata Motors dropping over 8%…three barely were able to hold on to yesterdays closing
Sell offs in India are echoing rest of Asia….Tightening in China is playing this out…with Europe and USA scenarios adding to uncertainties
Sensex is back down below 16500 from my predicted top end range of 18000 for the first half of 2010…Expect more falls…Expect Volatility to persist….Seek Opportunities for Entering or increasing Exposure to certain Stocks….Larsen & Toubro being one of them…It had reacted to below Rs 1550 a few days ago…It surged back to Rs 1670+ levels this morning and again is moving back towards Rs 1600…Rs 1400 to Rs 1500 would be good buying into range with a three year outlook
Don’t Panic and Liquidate Part or Full Long Term Equity Portfolios as long as your Selections are Sound…ride this Volatility holding a Long Term View…don’t try to play the ‘Exit and Re-enter’ Game…It would be a Tactical Strategy that may not work …..and confirm that your Asset Allocation matches your Risk Profile…you’ll sleep sounder