I am in Nagpur, for the CNBC Investor Camp. My trip required a fair bit of spare time since the only flights from Delhi to Nagpur are in the morning, requiring me to reach one full day before the camp. This caused some amount of disturbance in regular tasks, and, the blog could not be written.
The Nifty is now close to 3500 which has been the upper limits of a trading range that has now lasted for 10 days. A close above 3500 will justify a long position (buying) for traders a well as investors. For traders, the task is simpler. Buy with stop losses. For investors, the buying is probably high risk. The market is due for a correction. The dip does not come on demand (just because i say so), but on the market's own wishes. But, the risk does not go away. For investors, therefore, the approach should be 'long term' - I am buying now. I am buying because of a trading range breakout. I will ot worry if the Nifty were to fall. If the breakout is genuine, I will be able to make a paper profit. Now, for those investors who are uncomfortable with this thesis, my suggestion is to wait for a correction.