Nifty below 8000 level, at almost 2016 low

Blog meant for 22 Nov 2016 Tuesday

Nifty continued its downward trend today and fell 145 points to close at 7929. Global cues are quiet with no major movements on either direction. The demonetisation move by the Government has kept the Stock Markets pessimistic in short term.

But one of the main reasons for the current Market fall is due to the news from the US markets. Investors are expecting the US interest rates to rise and hence many investors are selling in markets such as India and taking back their investments back to the US. This is why many Asian markets including ours are getting affected by Foreign investors selling.

Hence, do not only think that demonetisation is the reason for the current fall in the markets.

Nifty is 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

If you have a time horizon of 8 years plus, such times are very attractive for investors since the prices of many leading companies have fallen a lot in the last few days. You must be excited to be able to invest in good stocks at much lower rates than even one month back.

There is a possibility of markets falling more. If you are a long term investor, you need to invest regularly since you will be able to pickup shares at lower rates and high rates at time, thereby getting a good average purchase price which will seem lower when we plan to sell many years later.

Do not miss the monthly investments for long term.

But keep away from short term trades since markets are still very weak.

All the best!

Dr.Bharath Chandra