Today,we can see another firm opening and perhaps back-to-back days of rallies, buoyed by the surprisingly dovish move by the RBI and the overnight bounce in US. In addition, the rates in the crucial inter-bank market overseas has started softening, which could be a sign that the credit crunch is easing. The situation in the local money market too has improved considerably on the back of the aggressive CRR reduction and now the 100 bps cut in the repo rate.
Stick to the frontline stocks and lock in gains at higher levels. Keep some cash handy to take advantage when the market eases further. Wait for a clear signal of stability from the market before stepping up the shopping spree.
