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Byline: Nikhil B. Srinivasan
Oct. 2--YELLOW LIGHT FLASHING ON SET: In my column of two weeks ago, I noted that the market was likely to take a breather at some point in the near future -- a healthy thing for sure. However, given current liquidity conditions and my sense that fears of a significant increase in interest rates are exaggerated, any breather would not be too substantial. Technicals suggest good support around the 530 level.
Despite the positive long-term trend for the market, another point I proposed was that adopting a more defensive position should become at integral part of an investor's approach to the SET. The rationale being that with the market up more than 60 percent since the beginning of the year, there was an increased likelihood of near-term profit-taking and, perhaps more to the point, returns next ...