In last 6 year there has been 2major correction one in 2004 and 2008 both topped in January
2004 Sensex made Top on 09/01/2004=6249 & 15/01/2004=6248 almost a double top and after which is crashed in May 2004 to see a low of 4227 0n 17/May/2004 and it took 6months to cross the high again on 01/Dec/2004
2008 Sensex made high on 10/Jan/2008=21206 and from there it corrected till 7697 on 27/Oct/2008 and Sensex has recovered to make a recent high on 06/Jan/2010 which is 17790 in 15months.
In 2009 January Sensex corrected from high of 10469 made on 07/Jan/2009 to 8047 low of March/06/2009.
Investor should understand correction is a part of market and it is here to happen and instead of buying in euphoria always buy when everyone is a seller in market we can never judge the low & high of the index or stock perfectly but systematic investment makes a big difference. Buy in small quantity on a regular basis and only in cash.
Only in cash-Many don’t understand importance of this, 90% of leverage traders lose money to 10% of the brilliant traders and if you notice people doing derivative( F&O or Futures) make fast money to lose it even more faster in the slightest mistake or wrong trade. Why lose good (Hard earned) money on a trade?
In our view Sensex can make new high by 2011/Dec and target by 2016 is 45000 to 50000 which is almost triple in 6years from current level of 16k and by any chance we get a correction till 13k or below we get better average but in case our prediction is wrong also as u r a systematic investor you never lose on opportunity.
Value Pick in next 2years RELIANCE, MRPL, GSPL, MTNL, SAIL, IFCI, IDBI, NEYVELILIG, 3IINFO and GLENMARK and our Faboulous-15 http://akprabhakar.blogspot.com/2010/01/markets-consolidated-their-gains-this.html are stock when slowly accumulated would give good gains for investors above 2years.
