Nifty slowly falling close to 10,000 mark

Blog meant for 23 March 2018 Friday

Dear friends,

Nifty closed weak once again today. Nifty closed 40 points lower due weak global cues. The global markets continue to stay weak. Tonight, European markets are down by 1-2% and US markets are also down around 1%. 

Our markets are likely to open negative tomorrow too and there is chance in the coming days, markets may come close 10,000 mark and then slowly fall below that level. This is the general expectation since the general trend is likely to be weak.

Nifty is in Don’t Buy zone.

The indications for individual stocks for short term are –

DON’T BUY – HINDALCO, SBI, TCS, VEDANTA, YES BANK, AXIS BANK, RELIANCE INDUSTRIES, ITC, ASIAN PAINT

SELL – HDFC, MARUTI  (sell only if you had bought for short term. As mentioned in the blog, it was better not to buy them today)

SELL –M&M

HOLD – TITAN

WAIT TO SELL – INFOSYS

WAIT TO BUY – HDFC BANK

No fresh buy indications for short term as of now.

Only buy for long term regularly. As markets have been falling, many bluechips companies’ share price have been falling. Hence, investors are getting good opportunity to buy at lower prices compared to few months back. However, markets may fall further and hence do not worry. Your vision should be minimum 8 years, if not much more.

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Government rules instruct share brokers to transfer any unused balance in trading account at the end of every quarter to the investor’s bank account. Hence, at the end of every March, June, September & December, if there is some cash balance in the account, it will automatically get credited to your savings account unless you utilise the funds for purchase of some instruments or shares.

In this quarter of Jan to March, March 24 (Sat) is the cut-off date for sending back the cash balance remaining in the trading account.

You have three choices:

1. Instruct the broker to let the idle money get credited to your bank account.

2. Buy some shares tomorrow on Friday 23 March if you want to with the balance available

3. Instruct broker to buy liquid funds temporarily

Brokers may also suggest that they can buy some liquid mutual funds or similar instruments to ensure that balance does not get transferred to your bank account since it is a hassle for many investors to re-transfer the funds to trading account to purchase shares in future.

This purchase of liquid funds or similar instruments may result in a transaction cost of Rs.10-20 which is quite reasonable. The fund can be sold anytime and the proceeds will get credited to your trading account.

Suppose, Mr.A had Rs.14500 as on March 23 in his trading account, he can:

1. Tell broker to transfer money to savings account (this is automatic if no specific instruction is given)

2. Buy shares partially or fully with the balance available

3. Instruct broker to buy liquid funds (usually Liquid Bees) and can sell it once the quarter ending cut-off date has passed. After the sale, the same Rs.14,500 minus some minor transaction charges will be re-credited to your trading account.

Hence, please understand the above and decide accordingly.

Remember that when an investor is aware of how the things around him/her work, then he/she is in a better situation to take good decisions and nobody can misguide.