Sensex tumbled close to 190 points today. It was more of a Follow through reaction after yesterday's Smart Rally which went a bit too far after the Euro stability deal.
So this correction was somewhat expected, though nobody was sure about the Extent. I do not tink we will see a continuos fall for the rest of the sessions this week. The market will recover in a day or two. The overall sentiment is positive and underlying factors are strong.
Metals, which saw a smart Rally yesterday, lost lot of their gains today. They will come back in next few seconds. They may not see their highs of April. But Stocks like Sterlite, Sesa Goa, Tata Steel and Hindalco should again 4-5% from their current levels.
Among heavyweights, Infosys have been lagging for a while. I think there will be slow up move. SBI, Axis Bank, have some more room left to rise. I am not sure how the Reliance Industries will behave. Though I expect a general up move in long term, the extent of the move is very difficult to predict.
One of my favourites Tulip has started to rise smartly again after being quite for a while. This is a really good stock and has given me good returns over the years. I'll buy some more in dips and might book some profit @1000.
Karur Vysya is continuing its dream run. Just thinking when to book some profit; it is always tricky to find the top, as to find the bottom.
I expect the Nifty to touch 5500 by August, so it will generally be a positive market. It is all about a question of picking the correct stocks at correct entry and exit points.
