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Friday, February 16, 2007

INVESTMENT STRATEGY


F&O first, budget later

Bulls managed to stage a recovery after a disastrous start to the week. Timing the market is a tough game. The best you can do is remain extra cautious at climbs and keep your stop losses in place. It is desirable to reduce the number of stocks in your portfolio so that you can keep a closer track of the movement and development in these counters. The coming week will see more volatility as we approach the expiry of derivatives segment for the month of February. After a 300-point rally on Friday, people on the street are taking about 15k levels before the budget. With so much bullishness around, investors need to be extra cautious. Stay less leveraged so that you can weather any temporary storm in the market.