Blog meant for 26 Oct 2016 Wednesday
Dear friends,
Markets fell marginally and Nifty closed below the 8700 mark. The global cues are not particularly positive and hence the weakness could continue in our markets. Markets have been almost at the same level for many days now. No major movement on either side.
Nifty is still in Don’t Buy zone. As per 30 days moving average graph, the following are the indications for short term –
Hold – Maruti,
Don’t Buy – Axis Bank, HDFC, M&M, Titan, HDFC Bank, Infosys
Wait to Sell – L&T, TCS
Yesterday evening the quarterly results of Axis Bank were announced. The profits were significantly lower due to the provision of NPAs (Non Performing Assets). This means that they expect a lot of loans to not be returns or returned with delay and hence they have recorded it as as a potential loss. Temporarily, it is a negative news. However, in the long term it is still a good company and one of the leading banks in the country.
Hence, if you are holding it for long term, there is no immediate change in decision.
The economy is still growing slow and many business are still reporting ordinary or poor quarterly results which is keeping the Stock Markets dull.
However, it may be a temporary phase as in the long term Indian economy is expected to grow well and most companies especially bluechips will continue the consistent growth they have experienced so far.
All the best!
Dr.Bharath Chandra
