Weak day for markets

Blog meant for 29 Nov 2017 Wednesday

Dear Friends,

Nifty fell by 30 points today due to profit booking as expected.

Asian markets were mildly positive today, European markets are slightly positive tonight and the US markets are slightly higher.

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

Nifty is in Hold zone.

THE HOLDS ARE- AXIS BANK, MARUTI, SBI, TCS, TITAN, INFOSYS, M&M, RELIANCE, HDFC BANK

THE DON’T BUYS ARE- YES BANK, VEDANTA, HINDALCO, ITC

WAIT TO BUY – ASIAN PAINT

WAIT TO SELL – Kotak Mahindra Bank

BUY – HDFC (buy if you have risk appetite and stay alert to market direction).

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Question of the Day –

I have bought some bluechip companies suggested during the Workshop and am investing on a monthly basis. Some of the stocks are below my average purchase price. What to do? Shall I continue to hold them for long term as I have a vision of 10-15 years.

Answer –

If your vision is 10-15-20 years, then as long as you are investing regularly in bluechip companies you need not worry about short term notional loss in your stocks.

Long term investors must note the following –

  1. There is no rule that the stocks you buy for long term must always go up in the short term. In short term, fluctuations may result in your average purchase being higher than current market price of the stock. For example, your purchase price of buying Asian Paints may be Rs.1190 and the current market price may be Rs.1171. There is no need to worry. As long as the fundamentals of the company are good, you can continue to invest in the company for long term.

  2. It is a bull market now where all stocks are going up for almost 1 year. Most investors would have become overconfident and have started to believe that markets will continuously go up. This is usually not the case. There is chance of a correction which will result in fall in price of many stocks by 10-15%. At that time, many investors who had invested in smaller companies without fundamentals will see a higher fall in prices.

  3. Stick to bluechip companies and invest regularly. Do not get carried away by some unknown companies appreciating by 20-30% in a few days. These are usually temporary and only due to the hype in short term due to the bull market sentiment.

The above stocks are for tracking and watching purpose only. You need not buy all the above stocks for short term. Only stick to the list of companies which were suggested during the Workshop and Buy them only when the Buy indication arises for them.

All the best!

Dr Bharath Chandra and Rohan

Please do not comment on the blog. Any questions or clarifications can be asked by sending us an email with your registration number given to you during the Workshop. Questions without quoting registration number will not be answered.

(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)

About the author

Dr. Bharath Chandra

Hi there! This is Dr. Bharath Chandra & Rohan, International Trainers & Success Coaches. We have addressed more than a crore people on Stock Market, Personality Development, Wealth Management and Financial Planning over the past 35 years.

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