Tuesday, 29 December 2015

Market Brief (14th Dec 2015)

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’.

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