Sensex which is now hovering around 17,000 was once 3200 and yes…. only a few years ago in 2003-04 . Consequently sensex rallied one way to make an ALL time high of 21,206 – but later only falling in a strong correction which saw its value erode to a low of 14,677.

The overall sentiments of the World Markets is down so it seems that the markets require more time to consolidate before they can move up again. Let us wait for this consolidation to be over — and then take up long positions in the Indian Markets(sensex/nifty).

In times like this, one should be looking at other asset classes for investment namely carbon credits and the time-tested gold and silver.

The Verdict is clear: Expect a high degree of volatility in the short term as the uncertainty regarding the dollar and oil still prevails.