Nifty in Sell zone

Blog meant for 27 June 2017 Tuesday

Dear friends,

Monday 26 June is a holiday for Stock Markets and hence the next working day for markets is on Tuesday. This blog will not be updated tomorrow since this blog will apply for Tuesday.

On Friday, Nifty fell by 55 points to close at 9574. Global Stock markets were also weak and the profit booking in our markets continued. With the fall on Friday, Nifty is showing a Sell signal after being in Hold zone for around 2 months.

As per 30 days moving average, the indications for short term for individual stocks are as follows:


Wait to Sell – MARUTI, Titan, Asian Paint 

Sell = ACC, M&M, SBI

Don’t Buy –  Axis Bank, LUPIN, BHEL, ONGC, Infosys, TCS, L&T, YES Bank

Since Nifty has entered Sell zone, many of the individual stocks have also entered Sell or Wait to Sell zone or Don’t Buy zone.

However, this does not mean anything for long term investing since buying bluechips on a monthly can and should continue. Never underestimate the power of long term compounding of money. Any short term profits we make is only a small fraction of what we can make by long term investing.


Question of the Day

Question – Since statistics and data all over the world show that long term investment in good companies results in returns much higher than other investment options, why do brokers or TV news encourage / advise buying and selling intra-day or very short term ?

Answer – The job / role of a broker is to provide an investor a facility to buy and sell shares. Most times, they do not have any training about how to do research about stocks or how to approach investments. Their major training is to motivate investors to regularly trade so that the overall transactions of his company goes up and hence the brokerage earned by the company increases.

Whether an investor makes a profit or not, it does not matter to the broker since he gets a percentage commission on each trade.

If an investors invests for long term and does not sell for many years, the broker does not get much benefit since he continues to provide the share brokering facility and incurs all costs but does not make any money from the investor unless he performs a transaction.

Unfortunately, the interests of brokers and investors are opposite of each other and this is why most new investors get encouraged and motivated to do intra-day trading or Futures & Options when they have no idea about Stock Markets itself and end up losing money and faith in the Stock Markets. In such cases, the new investors lose money but the brokers earn his commission and is the happier out of the two parties.

Similarly, many of the experts who come on TV are part of brokerage companies. Many of their clients watch these programs and get impressed by the expertise shown during the TV Programs and think that ultra short term investing (intra-day trading) etc. is the best and easiest way to make money.

Also, majority of the people who watch TV during the day time may be full time traders in the Stock Markets and hence the advise given is for such traders and not for pure investors who intend to invest their saved money for better profits compared to FDs rather than making a living out of the income earned from Stock Markets.

Always, do your own research before any investment. Read and analyse the facts and figures as much as possible about a company or sector and then invest so that you feel more confident.


All the best!

Dr.Bharath Chandra

About the author

Dr. Bharath Chandra

Hi there! This is Dr. Bharath Chandra & Rohan, International Trainers & Success Coaches. We have addressed more than a crore people on Stock Market, Personality Development, Wealth Management and Financial Planning over the past 35 years.

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