Markets strong but stay cautious

Blog meant for 2 Aug 2017 Wednesday

Dear friends,

Nifty closed above the 10100 mark for the first time! Nifty closed at 10115. Global cues are also quite positive tonight in Europe and US.

As per technical analysis, Nifty is in Hold zone. The indications for individual stocks for short term are –

THE HOLDS ARE – Maruti, Yes Bank, Reliance, ACC,  SBI, HDFC Bank, TCS, HDFC, Infosys, M&M,  L&T,  Titan

Wait to Sell – Asian Paint,  Axis Bank

We have been observing that Axis Bank has been fluctuating too much wherein it is giving a Buy indication one day and then giving a Sell indication the next day. Hence, along fundamentally, in its business it is facing difficult times due to Non-Performing Assets (NPA) problem just like many other banks.

Hence, we will not be mentioning Axis Bank for short term for next few months until we deem fit to add it back to Short Term list.

Also, if you have been buying Axis Bank on a monthly basis for long term, you can avoid it for now due to its unsatisfactory quarterly results in the last few quarters. If you are Holding Axis Bank for long term, you can continue to do so. However, fresh buying for long term on a monthly basis can be stopped for now until the results improve in the coming months.

Don’t Buy – ITC, LUPIN, DIVISLAB

Be careful of all short term trades. Although markets are looking very positive, profit booking or consolidation can happen any time unexpectedly.

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The next Bangalore Investors Forum Session is on 6 Aug (Sun) at 6.10 pm at Jain College, JC Road. Members are requested to report by 5.40 pm itself.

If you are not a member yet, then you can still become a Member by reporting at the venue on 6 Aug and paying Rs.1200/- cash for membership for 12 months.

If you become a member after this Session, then the membership will be Rs.1500/-.

All the best!

Dr.Bharath Chandra & Rohan