On the back of
markets being over sold, staged a recovery on the news of marginal decline in
fiscal deficit, strengthening rupee against dollar, rise in prices of Global
equity markets, and stabilised commodity prices, aided the market to close the
day and week on a positive note. The earning season reported by the companies
was a mix of some good results, and some equally bad results, now since the
earning season has ended the markets will look for other macro fundamental
cues. One needs to see how Global markets perform in terms of the economy and
the markets. One thing is for sure, that the year 2016 will be an extremely
volatile year for the Global markets, including India.
Technically
speaking, if one recalls our earlier
newsletters, all through we have maintained that 7200 on the Nifty is a
paramount level to watch, and the markets in the previous week bounced from
7240 to close this week at 7560, this justifies short term bottom in place. The
durability of this pull back rally will only be confirmed if market can manage
to consistently trade above 7200 for a prolonged period. If market fails to
capture 7700, and breaks below the crucial support of 7200, one would witness a
huge bout of selling. Until then, markets would remain in a range between 7400 and
7700. From a medium term (intermediate) perception, a close above 8200 on the
Nifty would qualify for a trend reversal. One needs to see how the markets
behave to the underlying fundamentals.
Investors
should be cautiously and stock specifically optimistic on the markets and be
very selective in their approach. Companies with good fundamentals and growth
should be bought for investments, at the same time rally should be used to exit
from the laggard sectors like Metals and Mining, Capital Goods, Power &
Utilities & Realty & Construction.
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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