Blog meant for 28 Nov 2016 Monday
Dear friends,
Nifty rallied by 149 points on Friday to close above the 8100 mark at 8114. The positive global cues and the depreciation of the Rupee lead to gains for most companies which earn in Foreign Currency since they will earn more money when the Rupee depreciates. The US Dollar is now Rs.68.46.
However, we have to see whether Friday’s rally was just one day or whether the markets can rally further this week.
Nifty is still in Don’t Buy zone after Friday’s rally. As per 30 days moving average graph, the following are the indications for short term –
Don’t Buy – Titan, L&T, Maruti, HDFC, M&M, Axis Bank, HDFC Bank
Wait to Buy – Infosys
Just Buy – TCS
Since the IT Companies such as Infosys and TCS are beneficiaries of an appreciating US Dollar, they rallied on Friday. Since the Nifty and all other stocks are in don’t buy zone, we can ignore the Just Buy signal of TCS and wait for another day or few days to see if markets continue to rise. Till then I prefer to wait to decide about any short term trades.
However, the last one month or so has been very good opportunity to purchase for long term. Generally speaking if you have time horizon for 10 years plus to invest, buying regularly is the easiest way to buy stocks. However, when prices fall, it gives us an opportunity to buy at a lower rate and reduce our purchase price. Hence, never miss investing for long term when the prices of bluechips have fallen.
All the best!
Dr.Bharath Chandra
