Most of us are aware of the present market situation which is nervous, especially after the fuel price hike. The fuel price hike was expected. The government has taken the courage to increase prices and this is like a positive signal for the market.
However, the 10% recovery which the government is making through this hike is not going to be significant. Unless and until crude oil prices come down below USD 100 per barrel levels, the markets are not going to get any such kind of comfort. Hence players are nervous about how the bigger picture is going to get managed.
Investors are looking for good exit points. Hence, there is no much present action seen in the markets. There is nobody who wants to commit to any fresh capital. All of them are aiming for a good point. This is the fact. Long term investors should remain invested in defensive sectors. They must sell stocks which are over valued, high ownership and have more risk towards earnings. Traders should wait and investors must gradually start looking at large cap stocks and keep cash aside. At a particular point of time, when there is good opportunity for investors they can pump into the market and take positions. We can expect about 14,000 to 14,500 kind of sensex levels over the next one to one and a half month.