Tuesday, December 6, 2011

Book Profit: Take Your Money Home!

We gave you buy call and markets around the world have bounced back.
Nifty has risen from 4650 to 5090 level and Sensex too has bounced back to 16900 levels from 15500 today. We suggest you to book profit in long trade.
Why to book profit?
We have seen quick gains in markets .Index have raised any where more than 7- 10 percent from recent lows and stock have raised any where from 10 – 20 percent.We see Euro finding resistance around 1.35. This will give support to dollar index at 78.It’s smart to book quick gains by going bullish on market.
So, it is important to realize that profit-booking is an important part of investment. And there are a couple of ways one can book profit. For that, the advice varies from stock experts to financial advisers, as the two communities play different roles. On the other hand, financial planners’ job is goal-oriented. They decide on investment, depending on what is to be achieved and when. They also take the risk appetite of the investor into account and, accordingly, allocate the money. As per them, profit-booking can be done at several stages.
When it comes to stock market investment advisers, they believe in booking profit at every rally. These experts look at equity investment only as a tool to grow wealth.

The journey of the market is never linear. There are interim rallies or corrections every now and then. These experts suggest that investors should buy at these interim dips and sell during rallies. But this does not mean that the entire portfolio should be sold and then bought back.
Smart Investor can go Short Too.

Thanking You
Atul sikrai
Sr Vice President & Head Equities.
wiTdom investment advisory.

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