Markets in May

Stock market behaves very peculiarly in May. The markets rise/fall every alternate year. The market has risen in May 2005, 2007 and 2009(with one 20% upper circuit) and the market has fallen in May 2004(with one 15% lower circuit), 2006(with one 10% lower circuit) and May 2008. Going with the same trend, the market is likely to fall in May 2010. However, the fall may not be sharp as it is not followed by a strong rally. Therefore, remain cautious and make fresh investments towards the end of the month. HDIL and Aban have broken resistance levels, therefore square off the position. Tata Steel has fallen sharply, hold the short position for further gains. Do not square off other positions.