Cash is a depreciating asset, but sometimes it may be worth sitting on some cash rather than being fully invested in any asset class

"In simple words we can say that depreciation is the reduction in the value of an asset due to usage, passage of time, wear and tear, technological outdating or obsolescence, depletion, inadequacy, rot, rust, decay or other such factors." - Wikipedia

As markets right now are trading at P/E ratio of 23-24 times FY10 earnings, the risk-reward ratio is not in favor of long term investors, they should wait for markets to correct 5-10 percent to deploy their first 20-25 % cash on which they are sitting and then invest in a staggered manner.

5250-5300 will act as a major hurdle for bulls

For people who are still bullish at this level should buy Nifty around 5080 on dips with a stop loss of 5010 with a target of 5200

For people who are cautious at this level can short Nifty around 5200 with a stop of closing above 5250 for target levels of 5110-5065


Stock View: Hind Petro


Have a happy trading day!!

Regards

Ankit