The equity markets in India, have seen the highest ever weekly gain this week, which is now commonly called as ” budget week” in the market streets and to top it another jewel in the crown is the highest sensex gain in last 9 years or so, but the critical question now is ” WHAT NEXT “, should you go all out for shopping equity at any price available or should you still wait for another bottom to be formed is a MULTI BILLION DOLLAR QUESTION today in the markets, lets see some status check
1.Market Valuations: Valuations wise the market is not expensive, infact many stocks are at compelling valuations, so a long term investor should definitely go on Equity shopping out there, but it is still to see the market sentiments and effect of govt policies/ spending to take shape on ground
2.Future Earnings: The future earning potentials of companies would depend of factors like – interest cost, NPAs, economic condition, Commodity prices, earning potential of users etc, which looks not so positive at current point in time barring the direct beneficiary of Crude and falling metal prices like OMCs, Aviation, paint, automobile etc
3. Future trend: The markets for now post budget levels looks a bit stretched on the charts and could take a pause or brief correction before taking the NEXT STEP forward, which can be treated as a good entry point for both investors and short term traders
So trade with confidence
Trifid Consulting Team !