Looking at the BSE Sensex Chart for 2 consecutive trading sessions, (Today's and Muhurat Trading), I wonder what has really changed to spark a sudden rally. Surely the fundamentals have not changed, we are still facing a slowdown, Inflation is still 11%, Banks are not lending, No new rate cut by RBI, this makes me think and ask myself  that Is this rally for real?

Some will argue that the Sentiment in global markets has changed. US, Asia, and major European Markets all have enjoyed tripple digit gains. Between the Dow Jones Industrial Avergae soared 900 points today in US Trading.

I strongly recommend that retail investors, should SELL every rally. I am seeing that the market is range bound . It keeps bumping up to 9200-9500 levels and then falls back down to 7800-8200 levels. The same stocks which were being smoothered a week ago, L&T , BHEL , BHARTI , TATA STEEL , RIL , TATA MOTORS are all up in the last 2 days. I really do not think that all these stocks are worth the 8-10% plus gains that these stocks have registered.

The Market being Range Bound can be thus explained:

Bullish traders find the valuations to be insanely low and do not want to miss the suppossed bottom, they buy sending these stocks higher. At the same time beaten down investors want to use every opportunity to sell and cash out. Thus the uncertainty and my doubts that the rally will be short lived.

So SELL the rally's, book your profits and also limit your losses at every opportunity. The High's and Low's will continue for sometime and let us try to make the best of it. Please do not get carried away and do not day-trade if you are not a professional trader. Be Informed, Invest intelligently .