Current position: Nifty closed at 2016 high yesterday and some of us were expecting some profit booking. It surged again today and now investors have butterflies in their stomach. True investors who were waiting from almost a year want to book profits but if market continues its rally and touches closing high of 8996 on 3rd March 2015 but after that it came down slowly and hit a low of 6970 on 25th Feb 2016.
Shall I start booking profits now? I always advise to invest gradually either via SIP or if you can maintain the discipline. Just like your investment your profit booking should also be disciplined. Investors who put their money at 7000 may start to liquidate their investments gradually. First of all book profits on investments which are older than one year to get the tax benefit. Then redeem the most profitable investments where your absolute return is at least 15%. Investment fetching less than 15% can be put on hold.
When we see past trends we simply deduct the bottom level from the top-level but that is past.No one can predict the exact top or bottom of the market. Start booking profits so that you will have your money liquidated when it will be time to enter the market.
Investors who were waiting for the bottom and didn’t invest anything at a lower level must be tempting now to invest. Those investors are advised to be careful and not to enter at this time. This may be harmful as the market can go for a correction. You may put small amounts at every correction of more that
