Monday Massecre.....don't panic.........

Friends,
Yesterday was a bad day .It was only due to selling of FII's of 2000 cr the fall came…
It is obvious that if some one comes to sell anything , even if it is a house or a car or stocks, we will bid the lowest price as it is seller who wants to sell as he wants to getout of that thing and hence buyer will pay his own price which will be always less then the market price….and actually that happened yesterday….FII"s wanted to sell and hence this fall….when a selling of this magnitude comes market only reacts in the way which it reacted yesterday..
There was no change in fundamentals of Indian market and hence nothing to worry. Market will be again positive within a week, maximum….maybe it can end in green by days end..
I again write here, don’t sell in panic….it is the last thing to be done….Book profit where one is in good profit but never sell in PANIC…
I am confident about India's growth story and it will continue to show good growth of 8-9 GDP for 4-5 yrs atleast….
The only destination for FII's , who have lost billions of dollars in US Sub Prime Mortgage , India is the only place they can make up the loss….According to me those FII's who are selling are erring…maybe they are selling in Futures and buying in cash…..yet to see the figures …what and where they sold…
With Sensex at P/E 20 , I am still bullish…..only if we touch P/E in 40's,mid 40's or mid 50's like where Shanghai(P/E..55) is hovering , we can expect a trend reversal…..untill then it is all correction….
People try to guess, how is the trend…whether it is euphoric, optimist,pessimist or what…..but after all market is the best judge.One can't judge all these and take decision…..those who have tried to do that have misetrably failed.I have seen them failing and the anamoly is that they still think that way…..Pity!
Euphoric type situation has been observed in our matket many times in last 3-4 yrs where our market has run from 3000 to 20000 ..and those who tried to time the market has missed the bull run….
The only way to get the max profit , according to me is to stay invested and bookprofit as and when it is necessary…I have always written at mmb and again writing here , sell 50% as soon as stock double from where you have purchased….and make the rest FREE of cost…then let it go where it wants to..
The real profit can be seen only if one is able to forsee the market trend…Our new Bull, known as Lord Of The Rings, Mr Rakesh Jhunjhunwala, was able to see the sustained Bull run and hence he went on holding his stocks and made a Fortune ……
If one is sceptic about the bull run, obviously he will sell his stocks which are fundamentally good…hence it is not only necessary to buy stocks cheap, but also one should be able to see where market is heading for…and for that one has to define his own rules…like I have defined…Sensex at P/E 20 …no Euphoria…..Indain markets has seen the trend reversal(Bear Market) only after P/E has gone over 40….
That is the benchmark for me I have made…to look at whether we are on verge of reversal…
So all said and done…as I have written, don’t panic and sell…that is the last thing investor must do…but panic is only created if one has over levearaged….and hence always remember not to remain overexposed….


Rajeev