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BSE Sensex-30 dips below 200 dma/ema

For those who watch such things, note that the BSE Sensex 30 index, after its 617 point drop, closed below both its simple as well as exponential moving averages:

BSE Sensex 30 dropped 4.7% on Apr 2, 2007

I continue to stand by my 11000 “buy” level; I have JM Morgan Stanley to keep me company:

Q: What’s your assessment of fair value and where do you see this market trading?

 

A: Fundamentally on residual income model, the fair value is around 11,500, which is really a December ’07 target that we have. In the meanwhile, it’s quite possible that the market goes below the fair value. The fact is that it has traded above the fair value for several months, so there is no reason not to believe that  it can trade below fair value.

This entry was posted on Monday, April 2nd, 2007 at 5:17 pm and is filed under sensex. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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    One Response to “BSE Sensex-30 dips below 200 dma/ema”

    1. Nikhil Says:
      April 2nd, 2007 at 6:52 pm

      For those who don’t watch such things, just stick to your asset allocation which gives you peaceful sleep at night. Those who thought they were buying diversified portfolio of Nasdaq or technology funds in late 90’s got burned. If you think a miniscule emerging market like India is a diversified market… then rude shock will await you.