Very weak global cues

Blog meant for 7 Dec 2017 Thursday

Dear Friends,

Nifty collapsed today and fell  by 74 points today. Global cues were hugely negative in Asia and hence our markets opened weak and stayed weak throughout the day.

It became further negative after RBI announced that there no changes in interest rates.

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

Nifty is in Don’t Buy zone.

THE HOLDS ARE- MARUTI, INFOSYS

THE DON’T BUYS ARE- VEDANTA, HINDALCO, ITC, ASIAN PAINT, TCS, Kotak Mahindra Bank, HDFC, YES BANK, SBI, HDFC Bank, M&M, AXIS BANK

BUY – RELIANCE (technically it is showing Buy indication, but since Nifty is in Don’t buy zone and most stocks are also in Don’t buy zone, we can ignore this indication and not buy for short term)

WAIT TO SELL – TITAN

This current fall is part of the consolidation which our markets required for many months. Markets had gone higher continuosly for 2 to 3 months and hence investors needed to do profit booking.

Nifty has almost reached 10000 mark from the high of 10490. Similarly many individually stocks have fallen around 5 to 10 % each. It is helping long term investors to buy at lower prices.

If you are a long term investor continue regular Investments and invest more if markets fall more.

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)