Is it the right time to buy Gold?

WIP

Indian Capital markets now

At 18400 plus levels, Indian Capital Market looks Bullish that presents a great opportunity for trading or investing along with a kind of attended risk. The best thing would be to understand the growth of Indian Economy and future outlook rather than thinking about the market levels in order to time your entry. There are no indicators that the growth projected for the future will be reversed at any point in time. However, some amount of risk associated with Foreign Institutional Investment will always exist. Overall, the picture seems rosy for the Indian market at least for the next 2 to 3 years.

When you pick scrip’s to invest in the market make sure to analyze your investment time period in a careful manner. Not all scrip’s are suitable for long-term investment. There are certain low fruits or market changers that have not yet been bagged in a sufficient manner. These scrip’s will add to the India shining story in the near future. The current liquidity visible in the markets is a result of more buyers and lack of sellers. This trend looks strong for the future as of now.

However, lack of retail participation in the market remains a key concern since there is a lot of money waiting on the sidelines that should actually become part of this market. To be honest people are not taking active interest in the markets. There seems to be a certain amount of caution and disbelief being exercised at the present moment. The heavy weights have started gaining and the momentum seems to have come back to the market. Therefore, all trends highlight a bullish pattern at the present moment.

How to time the Markets

The recent volatility in the stock markets have ensured that the faith of investors have been shaken to the hilt yet in the time of crisis and when the markets are in a bearish grip its the wise investor who makes the perfect move to scoop up the opportunity to invest for long and short term gains. Now as the markets head for another bull run the question on everybody's mind is whether this will sustain over the next few years. So here are a few suggestions on how to time the markets and how to negate the volatility :

1. Enter the market when no one else dares to think of entering. Keep liquity for such occassions. Its important to time your entry than to blindly follow the bullish trend set by others.

2. Following stock picks by big investors is another dangerous trend. Keep away from such tactics. Always try to do a bit of research on the fundamentals of the companies you like or think will give favourable returns in the long run.

3. The market in both bearish and bullish mode is always right. You have to be in the market to learn the market. Whenever the valuations are high the market will correct itself and be ready for that. Never try to get into scrips where valuations look extremly high.

4. Always balance your fear and greed. Greed can give you short time benifits on a few occassions but you cannot sustain the greed over long term. When the markets are in bearish mode try to overcome your fear and take the right call in the scrips where fundamentals look strong.

5. Be opportunistic, study the markets, take interest in sector specific stocks where the sector as a whole looks very well balanced. Have an independent opinion and be prepared for risks. Stay invested and calm when the markets nosedive.