Few stocks in Wait to Sell zone

Blog meant for 10 Jan 2017 Tuesday

Dear friends,

Markets traded in a small range today and finally closed almost, down 8 points. Many of the the global markets are also trading flat tonight.

Donald Trump will be taking over as the new US President next week and hence people all over do not know what to expect since many of his election announcements and promises made markets nervous.

We have to see how it affects our economy, businesses and stock markets.

The indications for short term are –

THE HOLDS ARE-  L&T, ITC, MARUTI, RELIANCE, TITAN, HDFC BANK, BHEL, TCS

THE DON’T BUY NOW ARE- DIVISLAB, HDFC, SBI, AXISBANK

Wait to Sell – M&M, LUPIN, ASIAN PAINT, ONGC

There are rumours that the Government may increase the time horizon of stock holding for long term. Currently, if we hold a stock for 1 year and then sell, the profits are free from capital gains tax. Rumours are stating that the Government may decide to increase the holding period from 1 year to 3 years to be classified as long term.

As purely long term investors, whether it is 1 or 3 years, we would intend to hold for 8 -10-15-20 years. Hence, it may not affect our approach to investing. However, many other investors who invested with a different mindset may change their approach towards investing.

All the best!

Dr.Bharath Chandra