Rajiv Mundra has a keen eye for the markets and he has the following post on his Google Group. Post below the fold.
Time is coming to start buying now into the markets.
Anywhere from 2600 to 2000 can be bottom for our markets.
I am optimistic for 2600 holding the line, but if doesnot, thats ok too.. downside from there will be very limited with high upsides possible.
Reward vs risk will be in big favour 2600 onwards.
At 2600 Invest 15% Diversified mutual funds and 15% in midcap funds.
Wait for 1 month and if lower levels come say 2300 or 1900. Invest all rest amount.
If 2600 is not broken in NSE even after 1month, keep deploying 20-30% more in mutual funds every month.
Do not forget to be invested in midcaps. They will severely out-perform broad indices in 2-3 years.
This is a once in life buying opportunity. Same as 2003 lows. Buy while things are still cheap.
Equity markets bottoms out about 6 months before the real economy does.
My expectation 2600. (30% invest zone when hit for first time then buy more every month)
Slightly bad 2300 (50-60% invest zone when hit for first time, then buy rest every month)
Very bad 1900 (100% invest zone when hit for first time, no waiting to buy slowly, but at once)
Worst of Worst^100 Bad 1400-1500. (sell your house, car and clothes and mortgage yourself and buy stocks)
1. INFLATION WILL NOSE DIVE in 6 months.
2. WE WILL SEE BIG INTEREST RATE CUTS in 6-12 months.
3. RUPEE WEAK AT PRESENT IS HELPING EXPORTERS, MAKE MONEY, SATYAM POSTED DAZZLING RESULTS.
recall previous email sent 10-20 days back, saying it stocks are best bet till rupee is so weak.
4. RUPEE WILL BECOME STRONG IN 1 YEAR. STRONG REVERSAL AHEAD.
5. IN 12-24 MONTHS, FOREIGN MONEY WILL START FLOODING IN LOOKING FOR NON-RECESIONARY MARKETS.
THE MOTHER AND FATHER OF ALL INDIAN BULL MARKETS WILL HAPPEN IN 4-5 YEARS.
BUY IN COMING DAYS AND GO TO SLEEP.
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