Holiday season abroad keeping all markets dull

Blog meant for 22 Dec 2016 Thursday

Dear friends,

Nifty continued its slow downtrend as it closed 21 points lower. It has been falling marginally for almost six trading days. Even the global cues are behaving in a similar way for the last few days. This could be because of the Christmas and New Year coming up during which majority of the countries abroad are on vacation.

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

Hold – Infosys, TCS

Don’t Buy – HDFC Bank, HDFC, Axis Bank, L&T

Wait to Buy – M&M, Titan

Buy – Maruti (as per the graph it is showing a Buy indication. However, since Nifty continues to be in a downtrend, the stock could fall too. Buy only if you have risk appetite. I would personally like to ignore buy indications until Nifty starts rising)

Bluechip stocks continue to provide opportunities to buy them a lower prices and as long term investors we must be happy since many years later the same stocks would have multiplied to much higher prices, thereby giving us very good returns compared to all other investments.

Also, the FD rates in Banks have been reducing since last 6 months or so. It is now only around 6.9 to 7.1% p.a. for one year deposit. Since this interest earned is taxable, the returns actually received will be even lesser than inflation. Some portion of our money must be invested for higher returns such as in Stock Markets.

All the best!

Dr.Bharath Chandra