I continue to maintain my cautious view on the markets in short term that I had formed a while back. My advice to my readers remain the same, keep cash levels and avoid doing any bottom picking in the immediate short term. The markets currently are showing great sign of weakness and can move much lower in coming days/weeks. Give the chance to the markets to stabilise and then jump back to buying.

Today markets had drifted below 4700 in intraday but due to lack of weakness in European markets, we climbed back that level. However we are still trading at new 2 year lows which is bad enough. The US markets are extremely weak today and if they close this way, I guess tomorrow markets could dip below 4700 again. Below 4700, markets are likely to signs of panic and some of that was seen today as well. We all know what panic can do, a lot of small and mid stocks can crash to severe low levels.

The only saviour for our markets can be positive global cues and if global cues turn negative in coming days, it is very easy to see much lower levels in December, as it is the next quarter earnings will go worse, so no respite there. If anyone is looking to buy into equities, wait for some more time, you might get much better levels to invest at. Make sure you avoid high valued stocks as they are likely to make you least returns in the long run.

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5. Hold Mahindra Satyam Stock