Dear friends,
A good rally for Nifty today as it rose by 87 points. It closed above the 9800 mark at 9852. European and US markets are mildly negative tonight.
Today’s rally was a good pull-back. However, we have to wait and see whether markets can continue this rally or whether this was just a special day.
As per technical analysis, Nifty is in Don’t Buy zone, The indications for individual stocks for short term are as follows –
THE HOLDS ARE – ACC, Titan, HDFC, HDFC Bank, Yes Bank
Wait to Sell – TCS
Wait to Buy – Maruti, Asian Paint
Don’t Buy – ITC, SBI, L&T, M&M, Infosys
Just Buy – Reliance (As per the graph it is showing a Just Buy indication since blue line has just crossed the red line from below. However, to be sure of the rally, we can wait for one more day and then decide whether to buy or not).
Hope long term investors are investing regularly for their future events in life. Do not let any distractions affect your long term goals and planning.
—–
Question of the Day –
There are many business news TV channels in India which keep telecasting tips and advice on Stock Markets. Can we just follow these TV Channels and take investing decisions based on what is recommended there?
Answer –
Usually, the Business Channels on TV are directed towards full time or day traders since these are the kind of people who watch the programs the entire day. The advice and tips given on TV are for ultra-short term such as Intra-day which are not recommended and suitable for most people. We are all investors since we have a business or profession and we are investing in Stock Markets to multiply our money in long term and short term. Our idea is not to make Stock markets as our major income earning activity.
Many new investors get mislead or blindly follow the advice given on TV without doing their own research and study. This usually results in making losses.
Also, when they refer to ‘long term’ on TV, it is usually a few months or a year. As such long term refers to many years such as 10 years plus where we enjoy the benefit of compounding. Unfortunately, most traders do not understand the benefit of long term investing and only interested in making money on a daily basis which is most times a loss making activity.
Hence, refrain from blindly being influenced by newspaper reports or TV programs which recommend you to buy certain stocks blindly. Always do adequate research before taking any investment decision so that you will be more sure of the safety and profitability of the instrument.
All the best!
Dr.Bharath Chandra & Rohan