Good opportunity for long term investors

Blog meant for 21 Nov 2016 Monday

Dear friends,

Nifty continued to stay weak. It closed at 8074 on Friday. The global cues were also negative and we have to see how the Asian markets open tomorrow. Since the Futures & Options contracts will expire on the coming Thursday, the markets may be volatile this week.

Nifty is in Don’t Buy zone. As per 30 days moving average graph, the following are the indications for short term –

Don’t Buy – Titan, Infosys, TCS, L&T, Maruti, HDFC, M&M, Axis Bank, HDFC Bank

The Demonetisation issues with respect to the queues in the banks still continue. However, hoping that the situation improves for individuals and for businesses.

As I have mentioning in the blog, as long as you hold leading companies called bluechips for long term, these kind of short term fluctuations must be welcomed to purchase the same stocks at lower prices. It does not mean that since we expect a fall in prices, we should sell and buy once it starts rising again. We should continue to invest on a monthly basis and stay invested for at least 10-20 years so that we can reap the rewards of a growing economy and compouding. The above paragraph is specifically written for long term investors.

Do not take any action for short term.

All the best!

Dr.Bharath Chandra