Source: Equitymaster.com
Considering this week’s behaviour, the one question that comes to mind is, are the bulls tired or is it just a temporary phase as they pause for breath before resuming their journey? Well, while we do not make any directional calls for the markets for the near-term, even if we were doing so, at the current juncture, we would have refrained from making any directional call. In fact, anybody who claims he can, is probably betting big on luck to support his call, as nobody knows what FIIs are going to do in the next week or month. However, what we can definitely say is that though investing at the current levels is froth with risks, as we find the markets to be fairly valued for the next 1 year at least, in the long-term, there are no second thoughts on the direction of the Indian stockmarkets. Though intense volatility could mark the market movements over the next few quarters, the long-term India story remains intact.
Thus, at the current juncture, the one good way to invest would be to invest in small quantities at pre-determined regular intervals in fundamentally sound stocks with some value still left in them. We know that investment ideas at the current levels are difficult to come by, but a little bit of hard work and extra research could help you recognise a few of them. This type of investing pattern would not only help an investor to be a part of the rally (if it continues), it would also protect him/her from over-exposing to equities at the current historic high levels and would thus protect him/her from getting severely hurt in the case of a correction. Moreover, even if a correction comes by, the investor would not have to worry on account of his fundamentally safe investments. Happy and safe investing!
