With the markets declining by 500 points in the last trading session, it seems as if we are entering a short period of correction. The Sensex continues to have strong support at the 19,000-19,500 mark and I would expect the markets to bounce back after hitting this level.
Meanwhile the correction in the market has led to a steep fall in the price of Parsvnath Developers.. The stock enjoyed a great rrun in December 2007, appreciating by over 45% .. However, the share price has fallen prey to profit booking and the stock has entered a near-term period of consolidation. However, I believe that investors should look to accumulate positions in this stock at every dip. The stock closed at Rs. 431 yesterday and has a 6-month target of Rs. 700 (minimum). Another run like that in the month of December and the stock will easily scale my target price.
Do not panic because the lull in the market is only temporary. Use the decline to buy fundamentally good scripts at cheap prices; the markets are going to resemble a roller coaster ride in the months to come!
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