Slight consolidation for markets

Blog meant for  10 May 2017 Wednesday

Dear friends,

Flat day for Nifty today to close 3 points higher. Markets traded in a narrow range throughout the day. Global cues are slightly positive as of now but nothing majorly positive.

As per 30 days moving average, Nifty is still in Hold zone. The indications for short term for individual stocks are –

THE HOLDS ARE – L&T, HDFC BANK, MARUTI, ASIAN PAINT,  M&M, SBI, AXIS BANK, BHEL, ONGC

Wait to Sell – HDFC

Sell – Titan

Wait to Buy – DIVISLAB, TCS,

Don’t Buy –  INFOSYS, LUPIN, Reliance, ITC

When we say long term investing, the time horizon of investing is atleast 8-10 years. This is a good time to assess whether a company’s performance is good or not. Of course we need to do regular monitoring every few months to ensure that the business is on track and that no drastic negative news has come. Sometimes, for a few quarters, certain companies are sectors do not perform as well as expected due to various factors affecting specific businesses, it need not mean that the company is not good for long term.

We need to have little patience and understand why the stock may be falling or the profits may be falling and only then decide whether we need to sell or hold.

Buying a stock for long term is a very important decision and it should not taken hastily whether to buy or sell without good reasons to do so.

All the best!

Dr.Bharath Chandra