There is a news in moneycontrol.com that FII's are expected to pump US$ 20 - 25 billion during this year. Following is my viewpoint with respect to this news :-
1) There are no retail investors buying out now considering the current stretched valuations. To trap the investors pool of these blue tv channels, websites publishing news.
2) If FII's are going to pump so much money, definitely they will not enter now. They will ensure they will bring down the market ensuring weaker hands are out of this market.
3) Bubble cannot be formed so shortly. We were out of the bubble just 2 years back.
4) Today there is a announcement that 3 stocks are changed into the Nifty. In this pack sesagoa is a low p/e ratio stock. Keep a watch on this stock.
5) Once nifty closes for 3 days in a row above 5566, then there is no way it will turn back and see and will cross life time high of 6200+ (which will be 27 times p/e ratio)
Considering all these factors, i am of the view that the markets will not go new highs so fast in the near term. Suggest that all of you be in the side lines and dont get trapped. Market may for a day touch even 5590 to pull innocent traders / investors.
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