Has The Time to Get Back arrived?

Markets rallied yesterday showing absolute strength. Experts attribute this rally to the positive news flow from the US and from FIIs.

This is also because some regain in investors and traders confidence on market. Markets were at bottom with 14,500 to 15,000 levels and 4,500 for the Nifty.

If the positive path continues and markets show stability over the next few weeks, more strength will come in. As post the March cleans up of balance sheets, April will see more money being pumped into markets.

Where to Invest and Where to NOT?

But despite the good news, it is a tricky call to buy in this market. This is because, markets have seen very erratic movements and depending upon the news flow; market could react even negatively to anything that comes by from the overseas market. But on an overall basis, I think that the first hint of positive news flow will bring back the liquidity waiting at corner, because most people are waiting for some stability and financial year end. So overall we are positive, but then also some negative news can bring negative energy with it in market.

There is strong visibility of earnings in sectors like capital goods, telecoms, FMCG but for people who are interested in investing for the longer term. With the short term perspective people could go for select pharma stocks. One can also look at some IT stocks and the metal space where stocks have taken a beating over the last few trading sessions. Any how one should refrain from investing in Banks and Real State stocks.