Markets stumbles

The fear that I expressed in my last post has started to come up the bourse. The markets have taken a dip on poor advanced tax numbers reported by IT department. The tax figures are down by 22% causing a dip in markets.

Since markets are off recent highs of 3100 by 250 points (8% slide), I think markets will stay new 2800-2900 for some time before taking directions. But if 2800 is broken on downside, it would leave gates open for bigger cut in market, may be up to 2500. And if earning season is worse than market expectations, you can see a level of 2200. But that's very pessimistic view of looking at things.

So, for now, dont have anything big in your portfolio and prefer to stay cash rich. Equity as an asset class has taken a hit and likely to be subdued for some time now. For next two quarters, my bet is gold which can appreciate up to Rs. 15000 per 10 gm if equity markets continue to slide.

Perhaps a time to re-look at your portfolio from short term perspective.