Nifty trading at 23 times this years earnings so this rally may lead to a abrupt correction. We are looking for levels like 6221 and 6600 on Nifty but we will surely turn bearish once we reach levels close to 6300.
Stock specific buys:-
IDBI at 140 very safe stock for long term as well as short term.
Reliance Capital at 780 is a great long term buy likely to hit 3000 by 2012.
Be cautious about markets only good news is we are trading at 3.7 times book which is comforting
because usually we correct once we at 5 times plus. So this aspect opens up range upto 7000 on NIFTY for rallying.
But markets looking very likely to hit new high and only those investors who have risk taking appetite should be aggressive in short term.
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