|Week||Market View: 19-23 May 2014|
|Market This Week||The election results are loud roaring and crystal clear. The entire country has voted on the hope of reforms and good governance. After 30 years a single party has got majority. The markets wanted a NDA led government at the center and now the stage seems to be all set. Note that the markets will not discount for this new strong government very soon. Things will start happening gradually. For now the markets will consolidate for some time and then take off. Again after some time you will see it coming two steps behind and then move 3 steps ahead. The markets will correct and consolidate every now and then and keep moving up. That’s how they work in an uptrend. It is very clear now that the market is headed for a massive bull rally in the times to come unless something terribly goes wrong, chances of which happening are very low now. Now the following is what you should be doing in the markets henceforth.
1. Participate in this rally if you have not already.
2. Once you have entered into a position, and it has rallied, keep holding it until the exit strategy tells you to exit. The counters could create new highs from here on now. We must reap maximum benefits from them.
3. Be disciplined and follow all that we have been preaching till now.
4. Do not speculate.
5. Approach one week at a time. This would help you gauge the market better.
In the near term, inflation seems to be the biggest worry. It might cause the RBI to take some control actions which could hurt the run that we have had till now.