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What Should be the Current Strategy

I beleive for the long term investors, it's a great opportunity to buy, because in my opinion most of the fundamentals are intact. Sudden nosedive can't be due to fear of recesion at USA. The reason could be -
1. Already our market was overpriced and people started thinking that we are insulated from global phenomenon. So a corection was due.
2. Profit taking.
3. Panic.
So other than the required correction (I am comfortable at about Sensex at 19,000), its more of sentiment. It's true that, sentiment has importance for market, but for long term investor it should only be fundamentals. In my opinion it's time to pick stock, that I missed during Bull Run.
My choice would be
NTPC, Power Grid, PFC in Power Sector.
Praj Industries, Suzlon (I think still costly, but very good for long term) in nonconventional power.
SAIL, HINDALCO (my horizon for this stock is more than 3 yrs), Tata Steel in metal
I would like to pick a few from Infra structure, Subhas Projects, Omex would be one of them.
Relaince and Reliance Petrol would be my choice in Petrolium sector.
I should also look for some stocks from Capital goods.
In my opinion short term traders should avoid market for a while and try to reduce exposure (accept huge loss!!). For long term but risk averse should go for Mutual funds. This could be a great opportunity to enter good MFs. as NAV is going to hit by the melt down. [Read these posts 23 Jan 08]
One should take a break and refresh fundamentals of stock investing at this point. This was a good article( "Stock Up On Essentials Of Equity Before Buying Stocks", Outlook Money 17th Jan 2007)
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