It's popular to do what's popular, but its not profitable to do whats popular - Rakesh Jhunjhunwala
The current rise in the market has been dramatic and a lot of people have made significant money in the last month. FIIs have pumped in dollars and that has helped both the equity markets and rupee-dollar conversion ratio.
Most people have turned bullish and are trying to follow the herd and buying stocks. As history has repeatedly showed, retail investors usually get in at the wrong time in a market rally. It is important to ignore the liquidity and be cognizant of the event risks that are coming up.
March 16th Pranab Mukherjee is going to present the Union Budget. UP elections results should be also available at that time. There will be more news flow with respect to Greece's debt situation.
It is probably the time to be more cautious than adventurous. If you have spare cash, get into debt funds or buy into good fundamentally strong companies. Increase your time horizon of holding your stocks - buy to hold for the next 2-3 years.
I am looking at a couple of companies at this time and will post details about them once I complete my study.