Markets negative due to rate hike in US

Blog meant for 16 Dec 2016 Friday

Dear friends,

Nifty closed marginally lower today. However, the entire day was see-saw for our markets as it traded negative and positive and finally closed in the red. The major reason for the weakness was the US Federal Reserve’s decision to hike interest rates which will make investments more attractive there compared to other markets. It has also announced that it plans to hike rates further in the coming months.

The US and European markets have up by 1% eacb. Hopefully the positive global cues pushes our markets higher tomorrow.

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

Wait to Buy – Maruti

Buy – Axis Bank (Buy only if you have risk appetite since Nifty and most other stocks are in don’t buy zone and there is possibility of Axis Bank also falling if markets stay weak. If markets are positive, it could go up too)

Hold – Infosys, TCS (Both of them are doing well because the US Dollar value has appreciated and hence their profits are expected to increase since huge portion of their revenue is earned in US Dollars)

Don’t Buy – M&M, HDFC Bank, Titan, L&T, HDFC

Last few days to register for the Students Workshop (12-19 years) starting from 23 Dec in Bangalore. For registrations, call +91 9632443333 or email successdigest@gmail.com

All the best!

Dr.Bharath Chandra