Markets rallying due to expectation of Election results

Blog meant for 18 Dec 2017 Monday

Dear Friends,

The positive sentiments continued to push markets higher. On Friday, Nifty went up by 81 points higher to close at 10333. This was in spite of the weak Asian and European market cues. US markets closed at record highs on Friday due to local positive news with respect to change in tax system.

Our markets have rallied in the last 2-3 days due to the expectation of victory for BJP in Gujarat. The election results in Gujarat will be announced tomorrow (Mon) and hence markets may rally further tomorrow.

The analysis for short term as per technical analysis is as follows:

Nifty is in Buy zone. The indications for individual stocks are –

THE HOLDS ARE- MARUTI, INFOSYS, TITAN, M&M, HDFC Bank, RELIANCE, HDFC, ITC

THE DON’T BUYS ARE-  SBI, ASIAN PAINT, TCS

BUY – YES BANK, AXIS BANK

WAIT TO BUY – VEDANTA, HINDALCO

 ——

Question from a Participant

I have around Rs.3 lakhs in my trading account and I want to invest for short term so that I can get some regular income. My age is 57 years. Kindly guide me on how to achieve my goal of regular income from stock markets.

Answer –

To start, keep aside maximum Rs.1 lakhs only for short term. Based on the indications of the graph and blog, you should Buy or Sell. If you carefully follow the graph, you may make around 30% per annum in short term.

Certain transactions may not give profit. But generally, you will make 30% per annum after considering the small and big transactions.

After few months or a year, once you get confidence and have made good profits, you can increase your capital if you wish to.

You must not depend on short term profits from stock markets to cover your monthly household expenses. If you depend on this income to cover your expenses, you will be putting unnecessary pressure on yourself and may enter into unnecessary transactions which may result in you suffering some losses.

Hence, go slow and steady so that you learn how to effectively  make short term profits.

All the best!

Dr Bharath Chandra and Rohan

Please do not comment on the blog. Any questions or clarifications can be asked by sending us an email with your registration number given to you during the Workshop. Questions without quoting registration number will not be answered.

(The above comments are only the personal views of the authors of this blog. Please do your own research before taking any investment decisions. The reader of this blog must understand and take full responsibility for the Profit or Loss made by taking actions based on the above views)