Market Update : On the verge of fall

From the beginning of this year we have been pessimistic about market.

In Feb-13 we mentioned market is weak “Present market valuation is not cheap as it was in early 2012 especially considering slow down in economy.”

In May-13 we advice exit from underperformer stocks / stocks from weak sector / overvalued stocks.

In the past blog dated 07 Jul 2013 we mentioned

: market lack strong moment either side ( up or down)

: negative surprises are more likely

In subsequent period we observe

: Sensex which was at 19495 which saw rise to 20351 then fall to 18551 & pull back to 19382 & thereafter fall on last Friday.

: RBI come out with measure to control exchange rate.

Market is extremely weak at the moment. Below 18600, it can fall to 18200, 17800 , 17580, 17220. Post breakage of current support level, we expect notable fall.

Disclaimer:

Any purchase/sale of a stock involves a high degree of investment risk. Caution all investors that they may lose some or all of their investment if they decide to purchase any stock listed here.