Bulls & bears may lower volume
Last week the decibel levels were higher as bulls were literally screaming on the street. However, they stretched their vocals a bit too far and finally ended up sore this Friday. The fall today brought a temporary halt to a 6-week winning streak on Dalal Street. We had been advising caution for many weeks as the bulls are trading at dizzy heights for quite some time now. There is no need to panic as funds are waiting on the sidelines to invest in the fastest growing economy in the world. Investors need to remember, that any fall won't be too sharp, as it provides opportunity to those having some cash to buy fundamentally sound scrips. Adopt a sector specific approach as from now on the trend after would hinge on the strength of the upcoming quarterly results and expectations from the Union Budget. For the near term, a slew of policy announcements will dictate the direction for the market. Volumes will also play an important role in deciding the trend for the market. When volumes are less, wilder swings could also be expected occasionally.