As per the investopedia.com bottom fishing is defined as

“investing in stocks that are cheap because of a problem with the company or the economy. A bottom-fishing investor speculates that the stock's depressed price is temporary, will recover and make for a profitable investment.”

Technically speaking the market recorded highest fall of the year. The Nifty opened at 5,494 then it sailed upwards to reach 5,504.  From this point it touched a low of 5,268. At the end of the day it recovered a bit to close at 5,303. Thus Nifty lost 236 points from the high, which was higher than the fall experienced on last Friday. On last Friday, Nifty fell 221 points which was the record so far in the current year. In a span of 4 trading sessions we have witnessed two heavy falls which clearly informs the mood of the market. Besides, Indian rupee hit a record low below 64 against the dollar. Nifty has also closed at 11 month low. Under these circumstances, if one does bottom fishing it is considered as suicidal.

What to expect from the market now?

The minutes of the FED showed that changing the stimulus was not yet appropriate. Market players are anxiously waiting to see when the FED will start tapering its aggressive quantitative easing program. This data could support the market at the current levels but for long term investors buying is not advisable even now.

Yesterday we wrote “The market may move up sharply today as Nifty has lost heavily in the past 3 days. However the falling rupee, problems in CAD, changing FED policy may restrict the up move of the Nifty.”

At the end of the day our posting was respected by the market. Right now we should avoid betting on the long side of the market. However, there is one great opportunity which is available now which is attending the face to face session in Chennai.

You cannot afford to miss out this great opportunity!

As informed earlier we have scheduled the club meeting on the coming Sunday 25^th August 2013 at 6 PM! Please book your seat well in advance so that you do not miss out the opportunity to be with the co investors. The current meeting focuses on many options strategies to play in the market to maximize return with limited risk. We would discuss about several strategies to play in the current market to make our money work. More information on this will be available in our next edition. Alternatively you may give out your name now and book your seat to avoid disappointment. Please use the following link to give your name.

https://docs.google.com/spreadsheet/viewform?formkey=dHhIUWVYVnRneWlwZTloYlRsN2d4QlE6MA