Wednesday, June 23, 2010

Is it time to buy or sell?

As the “Reliance” euphoria and chinese whispers have been discounted by the markets, the markets find themselves clueless just before the triple witching day. Media reports on RIL’s entry in shale gas, E-GoM meet on June 24, 2010 are some positive signals but still needs to be transformed into reality.

Thankfully there is no bad news from europe but the euro-zone crisis is far from over. But, adding to the woes, any bad set of numbers from U.S front (this time U.S housing data) spoils the mood globally.

Also, we have the Q1 results lined up and the market pundits will be eagerly waiting to analyze results of select blue-chips stocks which may augur a certain direction to the markets.

Amidst all this, we cannot forget one most important factor for the Indian Economy, Monsoon. Though the monsoon express is on time but it’s yet to be seen whether it performs well on a pan-india basis and give boost to the agriculture , which has been continuously underperforming in terms of it’s contribution to GDP and an outperformer in terms of it’s contribution to inflation.

I think this is the right to rebalance the portfolio, a partial profit booking always advisable during any bull phase. Also, this is the right time to identify the duds in portfolio and get rid of them.

The simple theory always works : Buy the dips, sell the rallies.

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