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06 August, 2007

SMALL WONDER

It was a market yo-yo for last few days. We, small investors are not only baffled but also puzzled what will be market tomorrow or days to come.

Some stocks are standing apart from the pack despite the ongoing on slaughter of the market.

Two stocks are coming to my mind where probably investors are betting in the present rainy days. one is State Bank of India and the other is Crompton and Greaves. Both the stocks are showing their robustness and going up in slow and steady pace.

One can see the movement and the pattern for last few days. Also it can be noted that for every sharp increase of price is supported by volume too.

The growth of SBI is phenomenal considering it to be a large cap stock, good result and news is prompting investors to get interested in it. SBI to me a long term story. It was heartening to see the investors faith in it and its movement in today's forgettable market.

Still I maintain that in any slide of market, the market reign supreme. It does distinguish between good stock and bad stocks in that condition. Small investors should invest in small quantum of their money.


YO YO movement in most cases (if you consider market history) result in long term lowering of market index, so it may not be healthy to enter market with a very long term perspective.

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