If you must had read our previous blogs from past one year we were bearish on equity as an asset class and we got it right. After staying cautious and underweight on equities we change our stance from underweight to overweight. yes you got it right we are now “Bulls”.
What makes us to change our stance?
As you all readers know that we are strong believer in astrological predictions on market.
Combination of GURU & SHANI in Mesh Rashi projects bull run in equity as an asset class in near future.
We at witdom were quite bearish when Sensex was 21000 last year as valuations where high and P.E was at all time high. Sensex has corrected 25% from its top .Some Mid cap stocks have corrected more then 90% from there all time highs. We are getting bullish on market and these madcap stocks. Bear markets often ends with market capitulations in madcap stocks which are often held by large mass market participants.
Sensex chart shown in the blog shows that Sensex may form a bottom at 15500.Nifty may form bottom at 4650.This is right time to build long term portfolio with one year time frame. Market may fall if some negative development in global markets. But we think price wise correction has happened .But time wise correction may take some more time for up move.
Another factor that makes us Bullish is that policy paralysis which was major hindrance of growth for most markets are about to end. We see positive development by Indian government of FDI in retail sector as a first step in change of stance.
Looking at the global macro and micro economic situations we come to the conclusion
That leaders of various countries have woken up from there sleep and now working hard to resolve this financial crisis. Hard work by IMF can save us. EFSF can be super saver pack if activated in timely manner.
As according to our previous blog we made huge gains by loving dollar. We now suggest to sell Dollar. We see dollar index to have resistance around 80.Euro has jumped from 1.32 level which was according to retracement level from 1.44.
Yes we suggest Bear around the world to go on hibernation.
I would like to end this blog in typical Indian bullish words “Maal Laav “
Which means take my money and give me stocks which in turn shall give me wealth in long term.
Sr Vice President & Head of Equities
witdom investment advisory.