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I think market will fall more even though RBI has come up with more sops. What happened on Friday is very much pinpointing of things to come in this New Year or at least for six to seven more months to come and the earlier we realize this better for our financial health. Changes are happening very fast and this is certainly not good things for markets. Interest rates have moved up quite a bit in the last 6-9 months
and there is no indication that it is going to stop. inflation that is what we have a very hard to digest word lurking large in the financial markets. This will certainly slow down growth and will have a negative impact on the economy, this will hit almost all sectors directly. I think from an equity market perspective that rates have gone up and higher interest rates are bad news for equities and also the sectoral impact, which seems imminent to happen in near term. I think we need to sit back, and take look ask and tell ourselves what happened in the last five years in the equity markets is not going to continue at least this year and there are some difficult questions to ask our selves was the party with all the blue chips was logical enough for all the mad buying activity!.
Ask yourself some hard questions and you will see the fist reaction in what happened today but the bigger implication might yet open out over the next few weeks as the market come to grips with with how exactly the surroundings have changed and are about to change in near term. We certainly are not going to get rid of this with a one day selling hangover; I am sure this is not the case we cannot get rid off this within a day or twos of heavy panic selling. So I think we are getting into a stifling patch; and we are into it already and this stifling space is getting stretched out with every such announcement, which is coming in from Government. Don't worry if you have bought on fundamental buy calls this blood bath cannot run over your hard earned money. If you have bought on tenterhooks to make quick money it’s time to sell for you if you are not the last type then relax this can be very much a buying opportunity for you, there are numerous scrips that are undervalued and investment opportunities have crop up in those scrips. I had always talked about buying into Gujarat NRE Coke my word has been proved farsighted the scrip has resist the market fall, that was a fundamental call a month ago made by me and I have proved my worth as a stock market analyst. Thanks for the Review and check back soon from more of my guidance. Contributed By Ideas
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