Short Covering - Nifty may touch 4300 soon

SPRING, TX - OCTOBER 14: Bernhard Langer of Ge...Image by Getty Images via Daylife
My market commentary published on 17.09.2008 holds true for today also. I need not change any word from that post. But the reason for this bounce back is due to short covering. All and Sundry went short and the recovery surprises them all. In my yesterday's post, I stated that "Though we didn't expect an instant recovery, if recovery happens it would be more violent due to short squeeze". This is what happened yesterday.This what going to happen today. Bears will be slaughtered today. It is party time for Bulls. But a word of caution. "World's financial crisis is far from over. Today AIG, tomorrow it may Citi (It won't leave you to sleep)" - expressed in my post dated 17.09.2008 holds true even today. If you already have position in the market, try to book profit partially. If you want to take new position, wait. It is not the right time to enter the market. Even if you enter, try to close the position today itself, as carrying to next day has huge huge risk ( A swing of more than 150 points is too much).
Avoid both ICICI Bank and Reliance as both will be highly volatile. There are number of less volatile but profitable stocks are available like SBI, ITC, HUL, HDFC BANK etc., If you take postion in Reliance, don't carry for tomorrow.

Enjoy the party.
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