The end will come and only then the end is known !
How do we know for sure if a market has bottomed out . Only after the prices move up and we repent that we should have purchased at those prices . Unlike the online discount sales which we are so used to , in stock market the maximum discount that we can get is not revealed in advance .
As we have mentioned in the past the market gyrates between exuberance and despair . Between fear and greed . As of yesterday fear has taken over the market .
So far as the fundamentals are concerned , things are not that bad . We can expect the market to bounce back from these levels. Investors with holding power should enter the market and buy good stocks like SBI , HDFC , TCS and Infosys.
Midcaps has seen a huge sell off , however we may see some residual selling in the coming days .
Traders with deep stop losses should go long at current levels with a target of 7580 and a stop loss of 7150. However these are risky bets with the possibility of higher returns.
Rupee will see some short term strength , but in the long term we will see further weakness . We expect levels close to 70 by March .