Hold for short term but observe markets

Blog meant for 19 Jan 2018 Friday

Dear Friends,

Volatile day for markets as it opened very strong and almost touched 10900. Towards the last hour of the day, markets fell quite a lot and finally closed 28 points higher at 10817. Global cues are quite mixed tonight. European and US markets are slightly as of now.

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

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

THE HOLDS ARE- TITAN, VEDANTA, AXIS BANK, YES BANK, ASIAN PAINT, HDFC, TCS, INFOSYS, HDFC BANK, M&M, ITC

SELL – HINDALCO

DON’T BUY – RELIANCE INDUSTRIES, SBI

WAIT TO BUY – MARUTI

There are no fresh buy indications for short term as of now.

Please see the below picture. It is very good to understand how investors behave and react to stock market cycle.

Investors become very enthusiastic about markets when it is at its highest such as now and investors become very pessimistic and negative towards market when it is at its lowest levels.

In fact, investors have to be very fearful when markets are at very high levels and very greedy to buy when good stocks have fallen to low prices.

Since the picture has been created for US stock markets, SEC is mentioned in one of the points. SEC is Securities and Exchange Commission which is similar to SEBI in India.

As a long term investor, as long as you good companies which are bound to grow well over the years, you need not worry about ups and downs of the market.

All the best!

Dr.Bharath Chandra and Rohan

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(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)