Indiainfoline: Investors should use the rally to exit weak stocks and move into better quality scrips

According to indiainfoline daily market strategy report Bulls may be welcomed in style after a mixed week so far. The US market rallied overnight after two days of declines. Buoyed by the gains on Wall Street, stock benchmarks across Europe, Latin America and other emerging markets too ended higher. Asian markets have also opened up this morning. So, its quite natural that the Indian bulls will also resume their buying spree and lift the key indices close to their previous lifetime highs. Investors should do well to use the rally to exit weak stocks and move into better quality scrips or wait with cash for buying towards the end of the month. The big question is whether the merry feast will last beyond lunch time.

There is no panic as of now, with the market having bounced back smartly from late August. Still, with chances of the US economy slipping into a recession (or has it already done so?) growing by the day, one will have to keep oneself abreast with the global events. The standoff between the Congress and the Left also seems to continue, and various parties have already started preparing for the impending mid-term polls. We are all set for a good day ahead. The near-term outlook remains sluggish amid concerns about the economic downturn in the US and its wider global fallout, including that on India.