IMPORTANT NOTES FOR INDIAN STOCK TRADERS/INVESTORS
On 19th march (Tuesday) Indian equity market got severely hammered as traders/investors grew nervous on the political drama enfolding in the Indian parliament today. As “DMK” pulled out of the “UPA” alliance, the market shrugged off the “RBI’s” Repo rate cut by 25 bps. nifty (spot) slipped and shut shop in deep red at 5745.95 on broad based selling.
From the market behavior & also as per the technical (eod) chart, though it looks like the Indian stocks market in a downswing & the investors fears that the political crisis increases the risk of a sovereign downgrade but it happened at a time when market was already little bit under pressure and running short of confidence. combination of both the events risk-off occurring on the global market courtesy the Cyprus situation and the political fluid situation in Indian both will create some nervousness in the market. however, self believe that UPA govt will try their level best to solve the situation (political logjam) as early as possible, which can give confidence to the market.
in view of all above and for the sake of safety, now we are going to trade very cautiously and should wait patiently for the right situation to enter the market, preferably in extreme dips and will come out Scot free with reasonable profit till the condition improves significantly.