Dear friends,
Good rally for our markets helped by positive GDP figures inspite of Demonetisation. Also, global cues were extremely positive in Europe and US and hence European cues helped our markets stay strong. Sensex is at a 6 month high.
Usually in such situations in markets, new investors start getting interest in investing in the Stock Markets. By the time the markets move higher, they get more enthusiastic and then invest at the peak with a lumpsum amount without realising that they need to invest regularly for long term so that any high price of purchase gets averaged out over a period. This situation of new investors investing was experienced by many people in late 2007 and early 2008 before the Global Financial Crisis.
New or old investors must understand that regular investing is essential for long term.
The indications for short term are –
THE HOLDS ARE – TITAN, HDFC BANK, BHEL, M&M, TCS, Infosys, RELIANCE, DIVISLAB, AXIS BANK, ASIAN PAINT, SBI, HDFC, L&T
BUY – ITC (Buy if you have risk appetite. Since markets have already gone higher and the other stocks are in Hold zone for many days, there is a chance of markets correcting sometime)
DON’T BUY – ONGC, MARUTI, LUPIN
Hope you are not missing the monthly investments for long term so that you will take advantage of the ups and downs of the markets.
All the best!
Dr.Bharath Chandra
