Is this a time to buy?

As mentioned in our previous post 'Our Current View' , pasted below for reference,

We still maintain that we will see 15000+ before the Wave C begins. Some reasons for our bullishness:

We had a nice day in the DOW with it up abt 150 points. Following suit, we might have an average to good day in most markets tomorrow. Which brings us to 2 very important questions:

1. So has the recent corrective come to an end
   
2. Is it a good time to buy?

We feel the corrective has come to an end. In the end of April, we had posted a likely view of what we expect in the future. In this chart ignore the time dependency and look at only the price behaviour. The invalidating scenario is the break of 13200 in the Dow(leeway of 50-75 points) which will cause us to assume Wave C has begun.

The same holds true for Indian markets as well, with the invalidating scenario being break of 13800(leeway of 100 points). However the crucial difference lies in the individual stocks. While most US stocks are in distribution mode, the Indian stocks look set for a brief breakout. So in short - we can initiate short term buys on some select Indian stocks with a stop loss mentioned above on the sensex. Click here for some of our picks.

The Chart for today: