The relentless surge in stock prices over the past several weeks has made several investors complacent that the good times will continue.
However, Ashwani Gujral, a veteran trader has struck a cautionary note and pointed out that the market is fairly over extended and a correction is due any day now. He stated that stock prices had surged so much that it was very difficult to buy anything of reasonable quality at a value zone.
Ashwani Gujral pointed out that the market had given wild gains in a short period of time and that investors must take advantage to take some money off the table.
He predicted that the Nifty could plunge to 5800 levels in a month’s time. That would be an opportune time to buy, he said, because it would look like a crises situation.
Meanwhile, Ashwani Gujral’s 5 stock picks haven’t done well despite the surging rally. Of the 5 stocks, three have registered losses while only 2 are in the green. The average return of the 5 stocks over 3 months is 4.84%.
| Ashwani Gujral’s Stock Picks Performance | |||
|
Stock |
Price on 01.01.2014 |
Price on 27.03.2014 |
Gain/ loss (%) |
|
Natco Pharma |
810 |
788 |
(2.74) |
|
Tata Elxsi |
418 |
545 |
30.41 |
|
Biocon |
470 |
414 |
(11.74) |
|
Bharat Forge |
328 |
397 |
21.03 |
|
Mindtree |
1546 |
1348 |
(12.79) |
Looks a trifle early for this kind of correction. I think, this may happen post election or if there is a hung parliament or if there is a 3rd front govt.
Gud that you uploaded his recommendation too so that readers will very will identify… well
Those who watch tv are very well prudent enough to judge who talks and whose calls hits bulls eye!!