This story is from January 24, 2008

It's not time for trading yet: Experts

Sherna D'Mello / TNN / Jan 24, 2008, 02:32 IST

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Investors were a relieved lot as the market finally snapped its seven-day losing streak that wiped out Rs 17.6 lakh crore in investor wealth.

MUMBAI: Investors were a relieved lot as the market finally snapped its seven-day losing streak that wiped out Rs 17.6 lakh crore in investor wealth. The sensex opened 900 points higher and but more importantly it was able to hang on to its gains staying positive all day. But is this just a knee-jerk reaction to the US Fed cutting rates, or will the rally last a little longer?
Market players are positive about the next few sessions."In the short-term the worst is over. The rally was partly on account of the Fed rate cut, coupled with certain systemic problems easing off," said Sandeep Nanda, V-P, Sharekhan.
"Trading sentiment has recovered to a large extent with the cut in the Fed rate. But there was also some short-covering that boosted the markets, so there is still some nervousness among investors and it's not likely to be a one-way rally from here. We expect the rally to last for around 2-3 more days, with some more upside until the sensex hits the 5,600 level. After that some selling pressure will come into the markets," said Shahina Mukadam of IDBI Capital Markets.
This is not a market for trading, say experts, as the volatility is likely to be high over the next month. But for long-term investors and those who missed the bus earlier this is a second chance. "Many blue-chips have fallen 25-30% and buying these stocks is a no-brainer. Midcaps have fell by over 45%, but you need to be selective when buying these counters," said Nanda.

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