Markets started correcting after touching the upper channel trend line as expected. A correction of 61.8% of the rally starting from 3600 has almost been seen with just few more points remaining. A pull back from this level would be likely or after some side ways movement. A break of 3940 would be crucial for the markets.
The sub prime issue is still not over, even tough it does not impact Indian economy, but the liquidity issue world over and the fear would lead to further panic.
It is advisable to Buy stocks like, RELIANCE CAPITAL, COMMUNICATIONS, ENERGY, BHARTI AIRTEL, INDIA CEMENTS, MIC ELECTRONICS, PUNJ LLOYD, KPIT CUMMINS, TATA MOTORS, ICICI BANK, BANK OF BARODA, ADITYA BIRLA NUVO upto 30% of your total investment and hold for long term. More can be added on dips.
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