Don't Short, Just Buy It - Sainik

Yesterday, all the financial channels' "experts" were constantly proclaiming that going forward there is only gloom and doom ahead for India. To buttress their arguments, they cited high oil prices, high inflation, high degree of political uncertainty, high fiscal deficit, high what have you. They were virtually on a "high" with the redoubtable Lata Venkatesh taking the cake -- and the bakery too -- as she scaled the heights of pessimism. They all must have been aghast, when they saw that the market was resilient.

Bhav hee bhagwan hai. This is nothing new. Market always do exactly the opposite of what the consensus is. Who would dare to buy when it is so "obvious" that everything is in bad shape. If you listen to the "experts" , the next best thing to "not buying" is "short selling".

After analysing the market internals, the markets are telling me that indiscriminate shorting is going on. This short interest will provide a floor for the market, at least in the short term. I expect the market to move up in the next few days and next week's close would be better than week's. Some time in the near future , I expect panic buying -- yes panic buying -- to emerge.

This would be the precursor for the next intermediate top. At that point in time, you are likely to see the same Latha Venkatesh and her cohorts exhorting people to go ahead and buy. This then would be the time to short. Until then, do not remain short. Just Buy It!

This Claimer: I continue to hold Nifty long positions for the past one week and have added to them very aggressively during the week.