The NSE 20 share index closed lower this week as market players continue to avoid pushing prices any further. The unfolding scenario is opening up opportunities in the market, if the market continues to lose ground over the next two weeks we will see share prices enter the BUY territory. I believe the current re-rating we are seeing was triggered by fund manager comments that stocks are over valued. It would seem investors assumed no share is under valued and have run in droves.
There is a lesson in all this, fund managers may be talking the market in the direction they want to see it - it is possible some guys would love to push prices lower to get a chance to load up. This is one of the oldest tricks in the profession. Don't believe all you hear, some shares are not that expensive. Then others are just beyond reason. Some little digging will point anyone to the real gems in this market. Reporting season will start in earnest next week, lets see if anything then will stem this slide.
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