Stock Brokers and brokerage houses usually give trading tips to general public occasionally (such as BUY, SELL or HOLD particular security. This week’s Sensex fall has thoroughly scared not just retail investors but brokerage houses as well. Yesterday BSE SENSEX reached a bottom of 15k and obviously it was best time ever to divert all your funds to stock market and grab quality stocks as they were available at such a cheap price. However I observed that not a single broker dared to give a BUY call on any of the securities yesterday (22nd Jan 2008) and only one call was issued on 21st. (Probably they are busy buying now and once they are done they will release a BUY call so that everyone starts buying and prices go up)
If I were in their shoes I would have given BUY call on almost all fundamentally strong companies. This has reassured my belief that it may not be a best practice to trade purely based on calls given by brokerage houses and rely more on one’s personal analysis and instincts while trading.
Above: Screen shot taken today (23rd Jan 08) morning from Rediff Money which showed that no broker tips were issued on 22nd Jan 08. Below: Image taken same day evening showing newly issued BUY calls.
Updates: Now recommendations have started flowing in, a little late, in my view.