Markets crash- just observe, don’t trade for short term

Blog meant for 16 Nov 2016 Wednesday

Dear friends,

Another massive fall for our markets today. Nifty fell 188 points to close at 8108. The markets have stayed weak for last 2 days mainly because of weak global cues and also the effect the demonetisation of notes may have on certain businesses.

Although, the overall result of this demonetisation will be good, for the short term, there could be various problems of liquidity in the markets for individuals which could affect certain businesses temporarily.

Nifty is still 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 US and European markets are positive tonight. We have to see whether the bears in our markets continue to sell and push markets lower or can some recovery take place.

Such falls are great opportunities to purchase good stocks at lower rates. Invest good amounts of money in such situations if you have spare money to invest.

However, do not venture into any short term trades until markets recover and a Buy indication arises.

All the best!

Dr.Bharath Chandra