What do experts say at this present market level

While some may have bought stocks at the highest level, others could contemplate buying more of the same stock. New investors may be sitting on the fence on when to enter the market. What do experts have to say at this current level.

Where are the markets headed now?
I think the markets will be range bound. Downside is limited from here: The Nifty may not go below 4450 to 4500. At the same time we don't see the Nifty crossing 4700 to 4800 levels in a hurry. We expect the market to consolidate in the next two weeks.

In such uncertainty what should investors do: Buy/hold/ sell?
I think investors should hold and buy at lower levels. They should normally buy on days when there are major dips. Suppose if the Nifty goes to 4600 levels and then drops a 100 points then that should be a day to buy.

What would you be buying on such days?
We are buying across all sectors except realty. The reason we are avoiding realty is clearly because property prices are headed south. It doesn't make sense buying realty stocks at this point in time. Perhaps we will get the same realty stocks at lower levels by November-December.

Real estate prices are expected to correct by 15 to 18 per cent in the next six months. Apart from realty we are buying across as they are available cheaply at current levels. Be it banking, capital goods, and mid-cap stocks in the IT sector investors can buy.
From the Sensex investors can pick Larsen & Toubro and BHEL.

What would be your advice to young investors?
This bunch of investors should preferably invest via the mutual fund route or should buy only frontline blue chip stocks.

Any Sensex levels for December 2008?
The Sensex should be around the 19000 to 20000 level. Earlier we were looking at the 21000 to 22,000 mark but now looking at the way things are we have scaled it down. Given a six month to one year investment horizon we are reasonably bullish on the Indian stock market.