Falling crude prices, stalemate in the parliament on crucial
reform bills, weak international markets, geo-political fears, stagnant
economic growth, weakening rupee and FII selling were some the reasons for
market collapse for day and week basis. Markets
in an intermediate term are in firm hands of bears and until things are
resolved it will continue to declines. There is no respite whatsoever at the moment.
As mentioned earlier unless some of these issues are not resolved it will be
difficult for the markets to progress and best it may remain in a range.
Technically the lows registered in September at 7540 on the
nifty is vital support and if breached on close basis than certainly markets
will see correction continuing till at least 7250 the Fifty per cent
retracement from the low 6000 registered last year and if this level of 7250 odd is held than a
sharp bounce is not ruled out. On the higher side multiple resistance right
from 8000 to 8300 will cap the markets going higher and unless the markets
fundamentals and internals improves a range bound trade at best can be expected
from the markets.
Although markets are in a correction mode offers a great
buying opportunities, one can selectively buy in smaller quantity and gradually
increase on further declines and more once the market have bottomed. At present
none of the sector looks good, however selected stocks from Sectors like oil
& gas, auto, consumer staple and discretionary, selected stocks from
engineering and industrials one can look to buy on declines from a long term
view.
‘Buy when others are pessimistic, however
requires greatest fortitude and wisdom, but pays highest reward’.
Contact us Here:
PRAGMATIC WEALTH MANAGEMENT PVT. LTD.
Head Office:
102, 1st Floor, Topaz
Society,
Dr. Nair Road, Agripada,
Mumbai Central (E), Mumbai 400011
Tel: +91-8108178683
E-mail: contact@pragmaticwealth.net
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