Market next Move -South or North

What a wonderful week we have seen?But Now what ?Should i sell or buy now or hold?Big Question.

I think people are still positive,they think market may move more towards some positive step taken by new govt in terms of privitization or disinvestment.

Budget is also ahead in july end may be new govt. will delight indian public.

Ordinarily, one would have expected a bit more of a retracement and that may well happen if the global markets warrant that over the next few days. It is not inconceivable that the market fundamentally speaking may retrace to the 12,500 kind of levels atleast in the near term. The problem with that assessment or prediction or expectation is that almost everybody is now waiting for the market to hit 12,000 before buying. In the last month every time people in the market developed some kind of a consensus a buying level has never come. People are left out, they do not have the courage to go out and buy at 14,000 on Sensex and in many cases it is justified because valuations seems a bit stretched in many names. So they are waiting for a dip. But the problem is that when everybody waits for a dip that does not come about. On Friday as well, the intraday dip got bought into.

So fundamentally speaking a dip is warranted but whether liquidity will permit that to happen is another matter all together. So keep monitoring what news comes from New Delhi over the next five sessions. If the news flow is good and global markets do not correct too much then maybe waiting for that 12,000 might appear as frustrating as previous waits to buy at certain levels have been.

There is great chance that market take dip next week and move to 12000 level.