Market may fall more before Elections.

Posted by Deepak
March 23, 2009

Indian Stock market, whcih has so far been moving in tandem with the global market, will break away for a while post elections. Expects market action to be Stock-specific for the next one-two years and sees a secular trend in the market.

Fundamentals are still weak and expects the market to give away its gains in the last 15 days soon. The Mid cap Index may not outperform over three months.

Markets would hit new Lows prior to the election this time around as fears will mount ahead elections given the huge uncertainty of the outcome.

Good election results could lead to a rally.

Advise for investors to keep maximum cash now as they would be able to invest at lower levels later. Market would get 10-20% cheaper from here on.

For commodity demand-supply situation would drive commodity prices in near-term and added the there is an inverse correlation between dollar and commodities in 2002-07

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